Vitalik Buterin Dismissed Bitfly’s Claims Over EIP1559 of Jeopardize Network Security

Priyanka Kulkarni
Priyanka Kulkarni, post-graduated in Business Administration holds worthy experience in market research and investment banking. She is passionate to flaunt her perception towards cryptocurrencies.
  • In a recent tweet by Austria-based blockchain technology Bitfly where it says with EIP1559 the plan is to burn ETH with every transaction.
  • An expected upgrade to the economic model of Ethereum platform EIP1559 proposed by Vitalik Buterin countered by Bitfly.
  • Countering to this statement, Bitfly pointed out that theoretically, the value of ETH should increase, but what will be the outcomes if the value does not increase.

In a recent tweet by Austria-based blockchain technology Bitfly where it says with EIP1559 the plan is to burn ETH with every transaction. Is it a good idea to risk the security of the network this way?

The proposed EIP 1559 model

An expected upgrade to the economic model of Ethereum platform EIP 1559 proposed by Vitalik Buterin countered by Bitfly. To which the Founder responded, saying why the EIP 1559 will jeopardize network security. Instead, it could increase network security by reducing the incentive to fork the chain to fight over txs with high fees.

Recently, the second-largest crypto coin revealed if the EIP 1559 model is approved, supply shock will happen due to the burning of ETH with every transaction. This will result for the investors to invest more money on Ethereum to gain profits by staking.

Countering to this statement, Bitfly pointed out that theoretically, the value of ETH should increase, but what will be the outcomes if the value does not increase.

Buterin over Ethereum development

The mega-mind of Ethereum notified in his previous tweets that during 2010, the elliptic curves, pairings, and general-purpose ZKPs/SNARKs were popular among the digital industry. Still, moving to 2020, the trend will be an upgraded version of the 2010 pattern. It will include a broad adoption of lattices, LWE, multilinear maps, homomorphic encryption, MPC, and obfuscation.

The young entrepreneur frequently shares his views and perception towards the flip-flop crypto market situations. His significant contribution towards building this other popular blockchain signifies the rapid development and strategies on the platform gaining the attention of the crypto lovers.

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