Ethereum’s hard fork London includes the controversial Ethereum 1559 Improvement Proposal.
As announced by Ethereum (ETH) lead developer Tim Beiko, the hardfork London update has been successfully activated on the Ropsten test network.
After the latest update from Berlin, the Ethereum fork London is expected to resolve network congestion and high transaction rate issues, which have raised concerns and criticisms regarding its scalability and performance.
We have a block!
“We have a block! It took a little longer than expected, but London is online at Ropsten ”, said Beiko, adding that he is “very happy to have submitted the first 1559-style transaction included on a public Ethereum network * of all time * ”.
Beiko noted that the blocks were a little slow at first due to the miners’ lack of updates:
“Since mining is altruistic at Ropsten (block rewards have no value), it can be difficult to get people to update in a timely manner.”
After Ropsten, on June 30th, the update will be deployed to the Goerli test network and finally Rinkeby will update on July 7th.
Hardfork London is one of the latest network updates that migrates from Ethereum (ETH) to Ethereum 2.0 and implements Ethereum Improvement Proposal (EIP) 1559:
“The proposal in this EIP is to start with a base rate value that is adjusted up and down by the protocol based on how congested the network is. When the network exceeds the gas usage target per block, the base rate increases slightly and when the capacity is below the target, it decreases slightly. As these base rate changes are constrained, the maximum difference in base rate from block to block is predictable. ”
Historically, Ethereum has priced transaction fees using the ‘first price auction’ model, and in order to address major inefficiencies, the controversial improvement initiates a dynamic fee structure and periodic fee burnout.
The new fee system means that miners are left with only the priority fee, with the base fee always being burned (destroyed by the protocol), ensuring that only the ETH is used to pay Ethereum transactions, cementing its economic value within the platform.
This will greatly reduce the miner’s extractable value risks and offset Ethereum inflation.
An important day for Ethereum, which takes another big leap from its Proof of Work (PoW) consensus mechanism to Proof of Participation (PoS).