Kosala Hemchandra, the CEO and founder of MyEtherWallet, highlighted two significant improvements.
When compared to the present Ethereum network, “The London upgrade adds around 5 changes to the current Ethereum network; however, I believe that only 2 of them are crucial to day-to-day users,” Hemchandra stated in remarks supplied to Cointelegraph. He went on to describe the first of the two as a “time bomb delay,” and he added:
“Since the inception of Ethereum there was a hard coded value basically responsible to make sure Ethereum will move to PoS or ETH 2.0 on time. This value is responsible for making the block difficulty exponentially hard after a certain block number thus making it impossible for miners to mine new blocks and they have to move to ETH 2 network. However, because of development delays this time bomb kept getting delayed and in the London fork, it’ll be postponed one last time.”
Due to scalability challenges that have occurred in recent years, Ethereum has been unable to scale effectively, as evidenced by the high fees associated with the use of decentralised finance, or DeFi, solutions.
Ethereum 2.0, often known as Eth2, is a long-awaited update to the Ethereum blockchain that aims to improve scalability by switching to a proof-of-stake (PoS) consensus method, among other things. The timeline for Eth2 formally began in December 2020 with the release of the first version of the protocol.
Five Ethereum Improvement Proposals were included in the recent London hard fork of Ethereum (EIPs). In one of those suggestions, EIP-1559, the blockchain is proposed to have an anti-inflationary effect on its native asset, Ether (ETH). Among the significant changes brought about by the London hard fork, Hemchandra pointed to EIP-1559 as the second most significant.
His comments were based on EIP 1559, a widely contested amendment that, in effect, alters the structure of how Ethereum transaction fees are handled:
“This will bring a couple of major changes, such as burning the transaction fee, which will reduce the increase of overall ETH in circulation. However, since miners will no longer receive the tx fees as an incentive this change was highly debated. This change also brings a tipping mechanism to tip the miners for including your tx, and this tip will go directly to the miner and will not be burned.”