February 24, 2021

London hardfork will reduce Ethereum fees

London hardfork will reduce Ethereum fees

According to insiders, the long-awaited improvement of EIP-1559 will be implemented in the London hard fork, it will help reduce the cost of gas on the Ethereum network.

The crypto industry is discussing a proposal forimproving Ethereum (EIP) 1559 since the launch of the ETH 2.0 network in December 2020. This initiative will help save on transaction costs in the second most popular cryptocurrency ecosystem.

In recent months, the high cost of ETH transactions has grown into a huge problem for users and projects built on the ecosystem.

Rising prices for cryptocurrencies and a boom in the segmentDecentralized Finance (DeFi) is driving demand for Ethereum and increasing network congestion. As a consequence, the gas commission breaks record after record. According to BitInfoCharts, now you will have to pay an average of $ 17 per transaction. Earlier this month, values ​​reached $ 25.

London hardfork will reduce Ethereum fees

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EIP-1559 introduces a mechanism for correctingthe current auction process that determines the cost of transactions. Commissions will be dynamically adjusted so users can pay the lowest block rate.

Predictions Global founder and Ethereum developer Ryan Berkmans suggested that the update could be launched in July as part of the London hard fork.

Good for Ethereum

Although EIP-1559 is not directly related to the ETH rate, itwill positively affect the supply side. As a result of the improvements, fees will be dynamically burned, reducing emissions before running the proof-of-stake cosensus algorithm.

Berkmans added that tier 2 providers will benefit from scaling with the upgrade;

“EIP-1559 will help scale Ethereum already inthis year, allowing developers of second-tier solutions Arbitrum and Optimism to safely move their transactions to the next ethereum block. These two solutions are vital for ethereum scaling this year, so EIP-1559 is also needed. "

Earlier this month, a developer suggested thatin the long term, the upgrade could push the value of ETH towards $ 20,000 because the coin holders will benefit from the burned fees, not the ether miners.

Bullish Burning Fees

Framework Ventures co-founder Vance Spencer speculated that the massive burning of ETH fees would trigger a "wealth tsunami."

It is now assumed that miners are sellingearned ETH to cover costs. Without this pressure from sellers, the asset will have more room to grow, especially after the move to Proof of Stake (PoS) consensus.

Where is it more profitable to buy Ethereum? TOP-5 crypto-exchanges

For a safe and convenient purchase of cryptocurrencies with a minimum commission, we have prepared a rating of the most reliable and popular cryptocurrency exchanges that support deposit and withdrawal of funds in rubles, hryvnias, dollars and euros.

The reliability of the site is determined by the trading volume andthe number of users. By all key metrics, Binance is the largest cryptocurrency exchange in the world. Binance is also the most popular cryptocurrency exchange in Russia and the CIS, since it has the largest turnover of funds and supports transfers in rubles from bank cards Visa / MasterCard and payment systems QIWI, Advcash, Payeer.

Especially for beginners, we have prepared a detailed guide: How to buy bitcoin on a crypto exchange for rubles?

Rating of cryptocurrency exchanges:

# Exchange: Website: Rating:
1 Binance (Editor's Choice) https://binance.com 9.7
2 OKEx https://okex.com 7.4
3 Exmo https://exmo.me 6.9
5 Huobi https://huobi.com 6.5
5 Yobit https://yobit.net 6.3

The criteria by which the rating is set in our rating of crypto-exchanges:

  • Work reliability - stability of access to all platform functions, including uninterrupted trading, deposit and withdrawal of funds, as well as the period of work on the market and the daily trading volume.
  • Commissions - the size of the commission for trading operations within the site and the withdrawal of assets.
  • Feedback and support - we analyze user reviews and the quality of technical support.
  • Convenience of the interface - we evaluate the functionality and intuitiveness of the interface, possible errors and failures when working with the exchange.
  • Platform features - availability of additional features - futures, options, staking, etc.
  • final grade - the average number of points for all indicators, determines the place in the rating.

London hardfork will reduce Ethereum fees

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