Ethereum underwent upgrades on Thursday, the London hard fork upgrades had added new alternations to the network’s blockchain. According to the CEO and founder of MyEtherWallet, Kosala Hemchandra, there are two most valuable upgrades that sure to boost the network’s blockchain.
The London hard fork upgrade brought 5 changes to the current Blockchain network. According to Hemchandra, only two of the 5 upgrades are most crucial to the network’s success. He pointed out the first of the two upgrades was associated with time bomb delays.
Ethereum network included a hardcoded value that ensured that the network would move towards ETH 2.0 in due time, Hemchandra stated. He added that value coded in the network made it exponentially more difficult, implying that after certain blocks had been minted, miners would not be able to mint new blocks. This would have would push them to move towards Ethereum 2.0 network. According to Hemchandra, it was because of the development delays the time bomb upgrade was constantly delayed, and in the London hard fork, it will be delayed once last time.
The London hard fork upgrade consists of 5 Etehreum Improvement Proposals (EIPs). Among the proposals, is EIP-1559 which according to Hemchandra is the second most valuable upgrade in the blockchain network. EIP-1559 is said to give the native asset Ether a deflationary effect in the blockchain network.
According to Hemchandra, EIP-1559 has been a debatable upgrade among developers for the blockchain network. The upgrade in essence modifies the overall structure of how Ethereum transaction fees.
With EIP-1559, the Ethereum network will reduce transactions which will lead to a significant increase in the overall circulation, Hemchandra noted. He added that miners will no longer receive transaction fees as incentives any longer as well. Additionally, the upgrade now consisted of a tipping mechanism, meaning miners will be tipped directly rather than receiving transaction fees.
Ethereum has suffered from scalability issues in recent times, especially in regards to high fees from using Decentralized finance (DEFI) solutions. Ethereum co-founder Buterin mentioned that ETH 2.0 aims to resolve the scalability issues in the Ethereum blockchain network. Shifting towards ETH 2.0 also implies that a blockchain network will establish a proof-of-stake or POS. consensus mechanism. ETH 2.0 has been developed since December 2020, while still in the making, the blockchain is highly anticipated by miners, traders, and the like.