How will the Ethereum network alteration impact?

Ethereum developers wants to fix the congestion on the network
  • Ethereum developers are defending few alterations in the network
  • Few community members are against the changes, whereas the miners of ETH tokens are entirely against the changes
  • In the war, the miners have shown a sign of peace by introducing their own EIP

Ethereum blockchain’s core developers have defended significant changes for the upgrade coming this summer. According to the developers, the upcoming upgrade would destroy the ETH tokens and cut the miners’ fees. Following the facts, they mentioned that, as the ETH is the world’s second most famous cryptocurrency, its popularity could boost its price. However, such an increase in price and popularity could potentially make Ethereum a deflationary asset. 

Network’s upcoming changes effects

It is known that under the alteration that will complete by July, users will require a base transaction fee to the network that would then destroy or burn the ETH tokens. And ultimately help reduce the number of coins in circulation. Furthermore, the effect will help to move the current mechanism where users will have to auction to get their transactions included in the blocks by miners. Indeed, the old system will make the transaction cost very high in the coming times. According to Lex Sokolin, the co-head of ConsenSys, the alteration will take the network fees to something that is much more predictable, from an unpredictable mechanism.

Is Ethereum blockchain’s alteration worth?

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Earlier in March, the developers of the Ethereum blockchain have approved a few changes to the network that runs the ETH cryptocurrency. The developers were ready to repair the current system where holders of the tokens send the tokens to miners to get the transaction completed in a kind of auction process.

Following the alteration, a spark of anger was generated among the miners of Ethereum. As the fees of miners were getting reduced. Few miners have even proposed a form of strike, whereas the users supported the changes but only a few. Because the reduction in mining activities will ultimately reduce the supply of tokens, and the price will begin to rise sharply. According to Dan Filey, a leading developer of the popular MetaMask wallet, the alteration’s purpose is to offer a more predictable transaction pricing system. And such a system will reduce overpayment and will have few deflationary economic benefits.

In the Ethereum world, there is a lot of turmoil, as miners had spent time and money building facilities. And now, the alteration could make them face more significant losses. Following the scenario, only one thing is comprehensible: the developers don’t don’t mine, so they care less about miners. In contrast, the miners don’t develop, so they just don’t care to fix the network’s congestion. Still, a sign of peace has been observed from the miners’ side. The miners have proposed an Ethereum Improvement Proposal (EIP) to raise their rewards and gradually lower them.

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Ahtesham Anis
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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