According to insiders, the long-awaited improvement to EIP-1559 will be implemented in the London hard fork, it will helpreduce 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) are leading to increased demand for Ethereum and increasing network congestion. As a result, the gas commission sets record after record. According to BitInfoCharts, you will now have to pay an average of $17 per transaction. Earlier this month, values reached $25.
EIP-1559 introduces a mechanism for adjustmentthe ongoing auction process that determines the value of transactions. Fees will be adjusted dynamically, so users can pay the lowest rate per block.
Predictions Global founder and Ethereum developer Ryan Berkmans suggested that the update could be launched in July as part of the London hard fork.
1 / EIP-1559 is huge for ethereum and coming soon
EIP-1559
— likely launches in July
— delivers important benefits to all ethereum users
— would have burned ~$26M in ETH yesterdayHere are some EIP-1559 resources?
- Ryan Berckmans (@RyanBerckmans) February 21, 2021
Good for Ethereum
Although EIP-1559 is not directly related to the ETH course,it will have a positive impact on the supply side. As a result, commission improvements will be burned dynamically, 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."
Eth thesis
1559 season approaching rapidly
ETH has ~ $ 5.5bn of fees (9% of ETH supply) per yr, assume 1559 burns half
$ 2-3bn of high growth fee burn gets valued by market at 100x
ETH wealth effect tsunami, ETH DeFi whales get even bigger
ETH whale chain wins
L2 is gravy https://t.co/dfwaYLmB6r
- Vance Spencer (@pythianism) February 22, 2021
It is now assumed that miners are sellingETH earned to cover costs. Without this selling pressure, the asset will have more room to grow, especially after moving 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 deposits and withdrawals of funds inrubles, hryvnias, dollars and euros.
The reliability of the site is determined by the trading volume andnumber of users. By all key metrics, the largest cryptocurrency exchange in the world is Binance. Binance is also the most popular crypto exchange in Russia and the CIS, since it has the largest cash turnover and supports transfers in rubles from bank cardsVisa / MasterCardand payment systemsQIWI, 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 functions of the platform, including uninterrupted trading, deposits and withdrawals of funds, as well as the duration of the market and daily trading volume.
- Commissions– the amount of commission for trading operations within the platform and 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 ranking.
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