Ethereum has announced that its highly anticipated London hardfork upgrade is ready for deployment on the Ethereum testnets. The upgrade is first slated to go live on Ropsten testnet on June 24. Meanwhile, it will go live on Goerli testnet on June 30 and Rinkeby testnet on July 7.
The date of deployment on the mainnet is yet to be decided, Ethereum core developer Tim Beiko wrote in a blog post on Friday, June 18.
“Once the upgrade has successfully been activated on these networks, a block will be set for the Ethereum mainnet and be communicated on this blog and in other venues,” Beiko wrote.
What is Ethereum’s London Hardfork?
Ethereum’s London hardfork is the next major upgrade of the Ethereum blockchain, which will implement significant changes in the blockchain. A few months back, Ethereum had underwent the Berlin upgrade.
Before upgrading the Ethereum blockchain, it deploys a version on Ethereum testnet or “test network.” The testnet simulates the main network (or mainnet), giving developers and the community a chance to test it before it is deployed in the mainnet.
The London upgrade comes with five Ethereum Improvement Proposal (EIP) upgrades. However, the most significant of the lot is EIP-1559, which will affect the process that decides the transaction fees.
Currently, an auction system determines the gas fee on the Ethereum network. This means that the network prioritizes the transactions of users who pay higher fees.
As opposed, the new proposal will adjust the fees so that users will pay the lowest bid for the block. According to Vitalik Buterin and Eric Conner, authors of EIP-1559, the update hopes to build a more efficient fee market. In addition, it is anticipated to simplify the gas payment process for clients as well as decentralized application (DApp) software, Cointelegraph reported.
In addition, EIP-1559 will burn transaction fees. This means that it will reduce the overall supply of ether, causing deflation of Ethereum. As a result, the fees will fluctuate based on network demand—higher demands will lead to higher prices and vice versa.
Scepticism in the community
Some scepticism is rife as the London upgrade nears. For instance, some expect EIP-1559 to bring down miner revenues by around 50%. This has led to several miners campaigning against the proposal.
Additionally, while the London upgrade is considered a bullish catalyst by many, some believe otherwise. For instance, Kyle Samani, managing partner at Multicoin Capital, stated that if the bids for ETH/USD go up, Etheruem will be expensive to use, reported crypto journalist Laura Shin.
However, as the network gears up for Ethereum 2.0 (Eth2), the changes London brings forth are only temporary. Eth2 aims to become more scalable, secure, and sustainable. Moreover, it will also be switching to the proof of stake system. The impact of Ethereum’s evolution on miners, users, and developers remains to be seen.
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