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- Ethereum Improvement Proposal (EIP) 1559 is going to be packaged with the London hard fork in July despite the mining industry’s dissatisfaction with the project
- The improvement proposal helps to flip a typical blockchain transaction on the head to fix its numerous issues with user’s experience
Ethereum blockchain has seen a significant improvement and changes over time. The EIP 1559 fee will be overhaul this coming July despite the mining industry’s disapproval.
What is Ethereum Improvement Proposal?
There has been a significant alteration seen in the Ethereum blockchain. It is the most significant and contentious alterations observed. Now, the Ethereum blockchain is all set to include its Codebase.
Ethereum improvement proposal (EIP) 1559 can come with the London hard fork in July 2021 irrespective of the mining industry’s discontent with the proposal, as per the All Core Developers call Friday. Another five EIPs will be joining EIP 1559 in London.
EIP 1559 changes the blockchain transaction to fix users’ experience issues. Usually, the user pays a gas fee to a miner so that the transaction is included in the block. The gas fee is later moved to the network. This is regarded as the base fee under which an option tip is paid to the miners. This is called the burnt fee. It is set up systems to make it easy for the users to pay the fee.
This new proposal has garnered much support to date from Ethereum application creators and users.
Profitable venture
Ethereum mining is a lucrative business of late. The mining revenue has surpassed a record $1.3 billion in February. Almost 50% of revenue comes from fees alone, as per the Coin Metrics. A new hash power to the network has created an increase in both the price of ether and transaction fees. This fee has doubled from last year.
Flexpool, a mining pool firm, launched a campaign against the EIP. There are many majority pools like Ethermine and Sparkpool.
60% of hash power from ethereum’s network oppose the proposal. One of the pools that favor EIP is the F2Pool with 10% hash power. The developers have decided to pair EIP 1559 with a delay to the difficulty bomb. They are also known by the name of the ice age. This upsurged the hard situation for mining on the Ethereum network.
Mining pools have few options to stop EIP 1559 now that it’s included, and most of these are considered hostile against the network. 51% attack against ethereum is one of the biggest dangers. 51% attack would likely decrease the value of ether in the short term.
There is a new way for revenue available for mining networks. Miner Extracted Value (MEV) is a favorite among DeFi traders. They bid for gas prices to secure the place in the block. Many Ethereum miners are trying to tap this MEV software to gather this untapped source of revenue.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
