ETH has recently risen as the highest altcoin value since the beginning of April has surged from $ 1,800 to $ 2,480, representing an increase of nearly 30%. This latest wave of money comes in the wake of Ethereum, which has received much criticism for network congestion and transaction costs.
In comparison, since the second half of February, the average cost of facilitating transactions in the Ethereum ecosystem has continued to hover above the $ 16-20 range, making it completely inconvenient for people looking to facilitate small transactions using the platform. … In fact, on February 23rd, the aforementioned tax rose to a permanent high of $ 42, sparking the ire of the crypto community.
The Ethereum network recently went through a Berlin hard fork, which in its main sense is a network update containing four Ethereum improvement proposals that aim to change the requirements of the gas tax ecosystem as well as introduce certain new types. deals.
The Berlin redesign appears to be laying the groundwork for a larger London fork that will bring EIP-1559 to life: a long-awaited, albeit controversial, overhaul of Ethereum’s existing fee structure.
Can EIP-1559 solve the whole Ethereum problem?
While the upcoming London hard fork promises to be a big hit on paper, it is important to grasp the question of whether EIP-1559 will be the long-term solution that Ethereum needs to address its scalability issues forever.
Cointelegraph spoke to Abdulhamid with the Plan, one of the six main authors of EIP-1559. He noted that there is a lot of misinformation and incomplete knowledge circulating on the Internet right now when it comes to the upcoming London update.
He originally emphasized in the plan that reducing current road congestion and increasing tolls was not the goal of EIP-1559, but rather sought to introduce the concept of “mass elasticity”, which would mean doubling the maximum theoretical platform capacity. he added:
“Transaction fees depend on supply and demand. Technically speaking, the average available block area does not increase as the main payment mechanism is designed to increase to half the block’s maximum capacity. So, the short answer is no, the upgrade will not be the long-term solution that Ethereum needs to address scalability issues. ”
On a more optimistic note, however, he added that as more and more Layer 2 decisions are made, all network costs and congestion issues will eventually be resolved.
Given that miners are unhappy with the proposed 50% mining bonus rate cut following the implementation of the London hard fork, Bakhta said it was quite clear why some miners were against the offer. “Together with gas taxes, which have reached their highest level in several years, Ethereum mining has become a large-scale business,” he added.
However, he stated that the miners already knew their business would be completed when Ethereum finally switched to a Proof of Work structure, adding that while he realized the cut was difficult to accept, a change was inevitable. “It’s not that they didn’t know about this proposal. The idea was first introduced by Vitalik in an article titled “First and Second Price Auctions and Improving Transaction Fee Markets” in July 2018, Bakhta noted.
Level 2 solutions are the needs of the hour
Ian Strandberg, Co-Founder and Head of App Growth at DeFi Platform Yield, shared his thoughts on how the upcoming EIP-1559 will help the Ethereum ecosystem, and how the update can comfort tired DeFi developers and traders. high gas charges and long waiting times. A short-term solution to common Ethereum problems.
In his opinion, we will see a real breakthrough only when Eth2 finally launches, so that the network can increase its transaction capacity from 15 transactions to 100,000 transactions per second. He went on to add: “This is truly a game changer – not just for Ethereum or even DeFi, but possibly all cryptocurrencies. This will pave the way for true mass adoption. ” As such, it looks like the upcoming complex rift in London will fundamentally change only the peripheral economy of Ethereum, without significantly impacting scalability.
Anton Bokov, co-founder of the 1inch network for the DEX complex, told Cointelegraph that he would be surprised if he started working on the upcoming London hard fork before September.