Ethereum, the second largest cryptocurrency in the world is undergoing major upgrades which could improve the Ethereum network as well as reduce the gas fees.
The Ethereum upgrade called ‘London’, slated for today includes a improvement proposal EIP 1559, which aims to make the trasaction fees more predictable, currenctly the users bid for their transaction to be validated by a miner, which can be costly as the id amount goes high.
Under EIP-1559, this process will be handled by an automated bidding system with a set fee amount that fluctuates based on how congested the network is.
EIP-1559 has also excited the investors and traders because the upgrade will burn ether as the miners will not receive the base fee after this upgrade which was one of the reasons for the stagering rise in gas fee.
Some investors also believe that the price of ethereum will go high upto 3000 USD or more as soon as soon as the upgrade goes live due to the limited supply and high demand.
“EIP-1559 is one of the most significant upgrades to Ethereum since the network’s launch,” says Meltem Demirors, CoinShares chief strategy officer.
The main aim of EIP-1559 is to improve the Ethereum ecosystem – DeFi, or decentralized finance, apps and NFTs, or nonfungible tokens and also migrating from Proof-of-Work (PoW) to Proof-of-Stake (PoS) later this year or early 2022.
The London Fork is also brings EIP 3074 and 3675 which will be important Ethereum code standards for stakeholders to keep an eye on. EIP-3675 titled “Upgrade consensus to Proof-of-Stake”, which could be the gateway to the Proof-of-Stake (PoS) mechanism.
Meanwhile, the activation block is number 12,965,000, according to Ethereum.org. As of the time of the writing of this sentence, Ethereum just added its 12,963,813th block, meaning there are (well, or were) 1,186 blocks to go.