Ethereum’s hard fork the highly-anticipated upgrade to crypto’s second-largest network is now live, the upgrade hopes to bring in new changes.
The London hard fork of Ethereum has just been completed at block number 12965000. The fork delivers five major changes to the network, the most prominent of which is EIP-1559.
Though it has been claimed that EIP-1559 will reduce Ethereum transaction costs, this is not entirely accurate.
Instead, it will enable users to better estimate the cost of a transaction. Users can be more exact in their calculations, which will likely result in them paying less, rather than blindly padding a transaction with extra gas to guarantee that miners complete the transaction.
As a result, it will reduce transaction costs in some ways. However, not in the manner that most people think of it.
During The Decrypt Daily podcast, Tim Beiko, an Ethereum Foundation developer, also stated that the cost will not be a “20x reduction,” but rather a “20 percent reduction.”
EIP-1559 will also herald in an age for Ethereum that some have dubbed “ultra-sound” by completely eliminating those bothersome mining costs.
The transaction expenses that were previously paid to miners will be destroyed and withdrawn from circulation now that the London hard fork is live.
Ethereans, including Beiko, believe that when more and more Ethereum is taken from circulation, there will be a supply shortage.
The cryptocurrency’s price is predicted to climb as prominent sectors within the ecosystem, such as decentralized finance (DeFi) and non-fungible tokens (NFTs), create more demand for it.