Ethereum network is rapidly moving towards the implementation of London Hardfork. The mentioned fork is scheduled to be implemented by July (next month). Thus, Ethereum London Hardfork is on the way. Recently the developers of this platform has published a list of proposals for improving the network. In this article, we are going to review Ethereum changes ahead.
Ethereum London Hardfork
Ethereum London Hardfork is an update, which intends to help the network move towards Proof of Stake through introducing two Ethereum Improvement Proposals (EIP). One is to change the pattern of transaction fees and the other is to make delay in the operation of “time bomb”. According to the announcement, these changes will be implemented throughout two proposals called “EIP-3238” and “EIP-1559”.
EIP-1559 upgrade is to improve gas fees on Ethereum network. The new update introduces a new pricing mechanism that sets a specific (but variable) fee for each block. Then fees will be burned by blockchain in order to reduce ether total supply. This method will put anti-inflationary pressure on Ethereum coin. In order to make transactions faster, you can pay miners a reward.
On the other hand, there is a time bomb of complexity inside the Ethereum, which once activated, will make it very difficult to extract the cryptocurrencies. EIP-3238 makes delay in the time bomb operation to ensure that evaluators will move toward ETH 2.0 PoS algorithm at the right time.
Apparently, by the launch of ETH 2.0 and elimination of Proof of Work method, miners profit will decrease. Consequently, Ethereum network will become more centralized. However, with the implementation of the anti-inflation mechanism, the price of Ethereum would likely increase. According to these updates, in Ethereum transactions, the base fees and the option to pay the reward should be shown to the miners and a payment maximum can be set. If the base transaction volume is less than your payment maximum limit, then the difference will be refunded to you by the network.