Ethereum EIP-1559 upgrade launches on Ropsten testnet as London hardfork nears


  • The London hardfork is nearing as Ethereum has deployed its first testnet as part of the upgrade.
  • The first block was produced on the Ropsten testnet on June 24.
  • The upgrade will include the implementation of the long-awaited EIP-1559 modification. 

One of the most anticipated updates for the Ethereum network in 2021, the London hardfork scheduled for July, includes a controversial Ethereum Improvement Proposal (EIP) 1559.

Ethereum transaction fee mechanism to be altered

Ethereum core developer Tim Beiko announced that the London hardfork was activated on the Ropsten test network on block height 10499401. 

While this activation process took longer than expected, this marks the first step as part of the London upgrade on testnets on Ethereum.

Since a lack of miners have upgraded their equipment in time, the Ropsten testnet is validating blocks with reduced speed. 

The upgrade will see the implementation of the highly anticipated EIP-1559 that will change the way transaction fees work on Ethereum

Miners currently receive revenue from two main sources, including a block subsidy and transaction fees. The proposal removes transaction fees as an income source for miners and replaces it with the inclusion fee. 

Ethereum miners would likely earn less from just the inclusion fee since it is both optional and an additional fee on top of the base fee users pay for their transactions.

It is difficult to determine how much lower revenues would be for miners after the proposal comes into effect. ETH miners can also receive an additional lesser-known revenue stream, known as miner extractable value (MEV), which reorders or reorders or censors transactions on the network.

The next phase toward the full rollout of the London hardfork is the deployment on the Goerli testnet scheduled for June 30. The last testnet, Rinkeby, is scheduled for July 7, and the final London hardfork upgrade will be rolled out on the Ethereum mainnet later in July 

While the London hardfork and the EIP-1559 would not result in a massive reduction in gas fees, the introduction of a more predictable base fee may lead to “some reduction in gas prices,” according to Ethereum software solutions provider ConsenSys. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Bitcoin bulls ignore China warning amid a potential rally to $45,000

Bitcoin has kicked off the August month on the right footing, looking to extend the previous week’s 15% gains amid favorable fundamental and technical catalysts. Looking at the daily chart, the BTC price is gathering pace to initiate a fresh upswing towards the horizontal 200-Daily Moving Average (DMA) at $44,750.

More Bitcoin News

Dogecoin price preps up for a rally towards $0.30

Dogecoin price is jumping this Sunday, displaying a solid start to August, as a fresh buying wave grips the crypto market. DOGE price confirms a triangle breakout on the 4H chart. The bulls target $0.30 amid the renewed upside momentum.

More Dogecoin News

Shiba Inu Price Prediction: Tide turning in favor of SHIB bulls, as $0.00000750 beckons

Amid an upbeat momentum seen across the crypto board, Shiba Inu is looking to extend Saturday’s upswing from near the $0.00000590 support area. The focus remains on Sunday’s close to confirming a falling wedge breakout on the 1D chart.

More Shiba Inu News

XRP price eyes a sustained break above 200-DMA to recapture $1.00

XRP price pauses its recent uptrend, consolidating in a familiar range for the fourth day in a row, as the digital asset bides time to resume the next leg higher. Only a daily closing above the 200-DMA could open gates for a rally towards $1.00. 

More Ripple News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP