Posted 11 months ago | by Catoshi Nakamoto
Ethereum’s much anticipated 1559 proposal codenamed the London upgrade has gone live on the Ropsten testnet, with a test burn of 88K ETH.
“We have a block! Took a bit longer than expected, but London is live on Ropsten,” tweeted lead developer Tim Beiko.
The next installment of the London hard fork rollout will be deployed on the Goerli testnet scheduled for June 30th, then the Rinkeby testnet on July 7th, and finally on Ethereum mainnet later next month.
EIP 1559 actually doesn’t aim to directly reduce the fees on the Ethereum blockchain that users spend. However, that might be one such side effect of controlling whether users overpay on gas fees to miners. This Is because the upgrade changes the current fee auction mechanism or “base fee” for transactions to be included in the next block. Although, those who want their transaction to be next and have a higher priority than their peers can still add a “tip” to speed up the TX.
EIP-1559 will burn this “base fee,” which, as a result, will change the spending on how full a block is. This new mechanism will allow users to set lower and more accurate gas fees on the Ethereum network. Beyond that, burning the gas fees permanently will completely make Etherum a deflationary asset allowing it to separate from other cryptocurrencies and begin a decoupling process from Proof Of Work, used by Bitcoin away from miners, to Proof Of Stake.
In fact, this was a part of the contentious debate around EIP-1559 between developers and miners a few months back as the proposal was expected to put stress on miners’ revenue, with some estimates suggesting a massive 50% of lost funds. This was originally largely due to the fact that EIP-3238 or the mining (difficulty bomb) was also packaged with the London upgrade, which has now been delayed until December 1st, 2021.
The difficulty bomb codenamed Ice Age makes mining more complex by increasing the amount of time required to mine a new block on the network, effectively making the mining process less profitable.
As Bitboy Crypto reported at the time, Ether miners previously planed a 51-hour hash war starting April 1st, ironically April Fools day. Miners aimed to direct their hash rate to the 1559-opposed pool, Ethermine, for 51 hours to harness more than 51% of the hash rate to send a message that they could run a 51% attack on the network if they wanted. However, that effort largely failed and turned out to be a flop.
But it was this threat that lead Ethereum developers to discuss moving the network over to Ethereum 2.0 sooner rather than later, as Bitboy Crypto reported. At the time, CoinDesk reported, Geth team lead Péter Szilágyi stated that pairing EIP-1559 with the mining difficulty increase would help ensure no one would fork Ethereum at that time without having to undergo numerous technical hurdles.
It’s worth noting that this is the fourth time that the Ethereum team has delayed the detonation of the difficulty bomb, according to Investopedia. The code was first rolled out in October 2017 via the Byzantium upgrade, followed by another during the February 2019 Constantinople fork, and the last was done in January 2020, when the Ice Age was delayed by four million blocks.
Ethereum 2.0 is expected to roll out early next year. However, Vitalik Buterin, the last remaining founder of Ethereum, has announced numerous delays to the much-needed upgrade for Ethereum since the project was first announced in November 2017.
Thus far, 5,902,658 Ether has been deposited into the Ethereum beacon 2.0 staking contract in preparation for the shift to Ethereum 2.0. You can watch the burn at the website, WatchTheBurn.com/ to stay up to date with how much ETH is actually being burnt on the testnet in preparation for the mainet release in late July.
Ethereum is currently trading at [FIAT: $1,827.63] DOWN -9.7% in the last 24 hours, according to Coingecko at the time of this report.