Ethereum’s highly anticipated London hard fork went live today at 12:33 pm UTC, introducing the Ethereum Improvement Proposal (EIP) 1559. Arriving at block height 12,965,000, the upgrade will reconstruct some of Ethereum’s parameters like gas refunds and its transaction fee market.
This irreversible hard fork also featured the launch of four other Ethereum Improvement Proposals (EIPs). The other EIPs include EIPs 3529, 3198, 3541, and 3554. These upgrades will give Ethereum (ETH) network users a better experience and value proposition.
The EIP-1559 upgrade is a milestone for ETH that will take the network from a proof-of-work consensus to a proof-of-stake consensus. According to a report, Joseph Lubin, ETH co-founder, referred to the hard fork as an essential part of the journey to make Ether evolve into “ultrasound money.”
The upgrade will burn ETH’s base fee on every transaction, instantly reducing its circulation supply. Consequently, enthusiasts are optimistic that this upgrade will make ETH a deflationary asset because each transaction will permanently remove a portion of the total coin supply from circulation. Additionally, various exchanges like Binance have temporarily stopped deposits and withdrawals on the ETH network.
However, Ethereum stakeholders will feel the impact of the EIP-1559 upgrade because users will now predict transaction fees. Users will also have a new fee market that will restructure the prioritization of transactions.
Image Credits: Pixabay
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