Ethereum experienced an upgrade taking place on August 5th, which introduced a variety of adjustments to the network’s blockchain, and MyEtherWallet CEO has singled out two top important ones.
Specifically, according to Kosala Hemchandra – founder and current Head of MyEtherWallet – The London upgrade has brought about five adjustments to the existing Ethereum network, with two are of highly importance to day-to-day users.
“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.” Hemchandra discussed “time bomb delay” and additional data.
Ethereum has reportedly been victimized by scalability-related problems throughout the past years, especially visible at the high fees associated with utilizing DeFi offerings.
Ethereum 2.0 (Eth2), which took quite a while to be ready, reportedly has a goal of making the Ethereum blockchain more scalable, which includes transitioning to a proof-of-stake (PoS), consensus mechanism.
Ethereum’s freshly released London hard fork reportedly consists of five Ethereum Improvement Proposals (EIPs). One of which is IP-1559, which aims to grant the blockchain a deflationary nature on its assets, Ether.
Per Hemchandra, EIP 1559 has been at the center of discussion, which essentially will alter the structure dictating the way Ethereum tx 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.”