EIP-1559 is about to be implemented. What impact will it bring to Ethereum ecology?

What is EIP-1559?

Ethereum transformation proposal #1559 (referred to as EIP1559) proposes a new on-chain fee pricing mechanism: the original business fee (collectively referred to as Gas fee in the industry) is changed from “auction-style” pricing to “market exchange rate”. “The pricing mechanism links the fluctuation of the handling fee to the block capacity, and the gas fee will be split into the basic fee and the miner fee.

The basic fee will be dynamically adjusted according to the current utilization rate of the network and will be directly destroyed. The basic logic is that when the utilization rate of the Ethereum network is 50% higher, the basic fee will increase; when the network utilization rate is lower than 50%, the basic fee will be lower, and the basic fee will fluctuate in a small range. In addition, the miner’s fee still belongs to the miner who packs the business information. The price mechanism of the miner’s fee remains stable, and the user sets the Gas Price and Gas Used.

EIP-1559 has been proposed in 2019, and the focus is to deal with the congestion of the Ethereum network and the problem of high gas fees. After nearly two years of community connection and development, it is about to usher in an upgrade. As far as possible at this moment, Ethereum miners have strong opinions on EIP-1559 blocking, but it can be expected that following the completion of the upgrade of the EIP1559 proposal, the impact and changes will be given to the Ethereum ecosystem. The summary is summarized as follows:

(1) The basic fee is destroyed and eliminated the smooth flow of ETH, giving ETH a higher price. With the prosperity of the business of the Ethereum network, the amount of destruction of the basic fee will be greater than the amount of additional issuance, and ETH will move towards a deflationary model, increasing the scarcity of ETH, thereby increasing the cost of a single ETH.

(2) Change the pricing model of the Ethereum network gas fee, and shift the dominant power of business confirmation from miners to business builders. To deal with a business on the Ethereum network, under the old gas fee pricing mechanism, miners can choose a business with a “high price”, so that business builders have to increase the gas fee and form a vicious cycle. EIP-1559 will alleviate this mechanism. Business builders can configure the basic fee according to the tension of the business, which means that the leading power of business packaging is shifted from miners to users, and the network congestion problem is expected to be alleviated.

(3) The business cost of the Ethereum network is expected to drop significantly.

Is it possible for EIP-1559 to cause a fork?

possible. Because of the decline in the income of miners, EIP-1559 may cause some miners to choose to fork ETH, but because ETH founder Vitalik Buterin has been leading the development of Ethereum for a long time, the impact should be temporary regardless of whether the fork is forked or not.

Is there a chain that does not fork?

I learned that in January of this year, there was a project that was developed based on the relationship proof mechanism, RPOS (Related proof of stake), so theoretically there is no possibility of forks.
DePOR.io, a main chain ecology based on the theory of six degrees of separation, will be launched on the mainnet in April according to its community news and will continue to participate in polkadot slot auctions. Interested friends can go to its official website to browse more information depor.io, it is understood that it is still in the testing network stage.

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Caesar Bruce

a finance,blockchain & fintech enthusiast,loves to focus on some altcoins and new fintech project.Remember Do Your Own Research.