Sarah Tran
Independent Analyst
- 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.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction
The SEC says it has jurisdiction to bring Justin Sun to court as he traveled extensively to the US. Sun asked to dismiss the suit, arguing that the SEC was targeting actions taken outside the US.
XRP fails to break past $0.50, posting 20% weekly losses
XRP trades range-bound below $0.50 for a sixth consecutive day, accumulating 20% losses in the last seven days. Ripple is expected to file its response to the SEC’s remedies-related opening brief by April 22.
ImmutableX extends recovery despite $69 million IMX token unlock
ImmutableX unlocked 34.19 million IMX tokens worth over $69 million early on Friday. IMX circulating supply increased over 2% following the unlock. The Layer 2 blockchain token’s price added nearly 3% to its value on April 19.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?