On July 5, 2021, Ethereum was updated with a protocol conventionally called “London”. This introduced a new model for charging transaction commissions on the altcoin network and platform created for centralized applications. All of this is expected to have an impact on Ethereum’s higher market price. This part of the work on Ethereum 2.0 is expected to lead to the migration of the blockchain vs the PoW (proof-of-work) algorithm to PoS (proof-of-stake). The hard fork that was mined, therefore, took place at block 12,965,000.
What does EPI 1559 mean?
EPI 1559 is referred to as “Fee market change for ETH 1.0 Chain”. So, as the name suggests, it is about changes in the distribution model and setting of transaction commissions in Ethereum. It is mainly about reducing the commission fees by having users send the gas fees directly to the network instead of the miners. Just by doing this, there will be a reduction in commission prices and miners will receive a possible tip. The gas fee is called besefee and it will be burned based on the establishment of algorithms and depends on the congestion of the network. So if in one of the blocks, more transactions are waiting to be considered, then the fee amount will be higher compared to the blocks where there are less pending transactions.
There is no denying that EPI 1559 is one of the most important changes coming to Ethereum. It aims to improve the user experience to a more positive one by providing an easier way to estimate fees, and it also shows how Ethereum responds to the rapid usage of its network. All of this could make users stop overpaying for transactions because they will be able to better estimate fees. Gas prices between blocks will also be normalized for the sake of varying block sizes.
EPI 1559 also does not affect the supply limit in Ethereum and does not make ETH a deflationary cryptocurrency.
Additional changes with the advent of Hard Fork
With Hard Fork also came other changes such as:
- with EPI 3198, UX improvements will be extended to smart contracts for EPI 1559,
- EIP-3529 aims to stabilize the network situation by removing refunds,
- EIP-3541 is to make room in the network for new smart contracts,
- “difficulty bomb” by 2021 is to be dealt with by EPI 3554, which is tasked with delaying it so that by then, miners won’t have much difficulty solving crypto problems and monetizing ETH.