Ethereum Founder Confident About ETH 2.0 Transition As EIP-1559 Launches
The much-anticipated London Hard fork upgrade has been completed. As much as the successful upgrade affected the price of Ethereum after it surged to the $2,700 range yesterday, it attracted comments from members of the Ethereum community and crypto enthusiasts. Of all the comments made following the upgrade, Vitalik Buterin’s comments dwarfs them all.
The Ethereum co-founder expressed his delight at the successful upgrade, noting that it was necessary for the eventual transition to Ethereum 2.0. According to Buterin, he is more confident that the ETH 2.0 transition will be as successful as the London Hard fork upgrade. The Ethereum billionaire also added that the EIP-1559 was the most integral part of the London Hardfork upgrade.
EIP-1559 to Eliminate High Gas Fees
Certainly, crypto enthusiasts will not agree less with Buterin’s assertion considering the significance of the EIP-1559 upgrade on the network. The improvement proposal will be a relief from the challenges of high gas fees and congestion that plagued the network a few months ago. How the EIP-1559 solves these issues is introducing a base fee structure that burns every fee expended on a transaction. In essence, the base fee mechanism is a shift from the bidding fee structure which was determined by miners on the network, especially during periods of network congestion.
As of press time, over 3,500 ETH estimated to be worth $9.8 million had been burned as base fees in the wake of the successful upgrade. Buterin declared that the positive outcome of the upgrade is an indication that the Ethereum ecosystem could accommodate significant changes.
In line with the roadmap, the current Ethereum mainnet will be integrated with the PoS Beacon Chain, which will signal the end of the Proof-of-Work consensus. Subsequently, the shard chains will be released, however, Ethereum developers are brainstorming to make the shard chains follow immediately after the initial integration. As expected, miners will no longer have the opportunity to mine once the transition is complete, but they could act as validators on the PoS framework.
Blocks Can Now Expand to Accommodate More Transactions
Away from deflationary mechanisms, the upgrade also addresses another issue, which is network congestion by introducing blocks that expand to accommodate numerous transactions. Transaction delays were a recurring issue on the network. Now, users will not have to wait for long to get their transactions confirmed. As regards this, Buterin noted that this was better for an improved user experience.
All the projects lined up for Ethereum have instigated speculations that an ‘Ethereum Flippening’ is not far-fetched. What this means is that a time will come when Ethereum’s market value will surpass that of flagship cryptocurrency, Bitcoin. While it may not be out of place to acknowledge that such may happen, the question is how long will it take. Ethereum made an impressive run a few hours after the upgrade was fully deployed, but it was short-lived.
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