a few hours ago For a major upgrade to Ethereum’s ‘London hard fork’ that will affect your miners, traders and even you. So we’ve rounded up 7 things you need to know about this upgrade. To know what it is, precautions and be prepared to deal with it in a timely manner.
1. What is the London hard fork upgrade?
The London hard fork, officially known as ‘London’, is one of the largest upgrades in the history of Ethereum, and a significant step forward before upgrading to Ethereum 2.0. The topics known as EIP (Ethereum Improvement Proposal) for this upgrade consist of 5 EIPs, including the EIP-1559 that have been particularly closely watched. It will also include EIP-3198, EIP-3529, EIP-3541 and EIP-3554.
2. Why upgrade? What can I upgrade to?
The London upgrade aims to solve the problem of fees. and solve the congestion problem that the Ethereum Blockchain network is currently facing. The fee problem will be solved by recalculating the network fee. and resolve network congestion by adopting a Dynamic Block Size system, which allows the block size to be increased to accommodate larger transaction volumes.
Ethereum is constantly being upgraded. Since the first coins came out But as for the upgrades that characterize the Ethereum hard fork, it has been upgraded before, the Berlin hard fork in April, followed by the London hard fork this time, and the expected Shanghai hard fork. There is an upgrade later this year. to support ETH2.0
3. What is EIP-1559, and why should people pay special attention to it?
As mentioned above, the EIP-1559 is one of the 5 EIPs of this London upgrade, but its attention has been paid to it. It is caused by it affecting us directly because it will change the system of calculating new fees. both on the side of the trader and the miner
4. What is hard fork?
Hard fork is the nature of the Blockchain system upgrade to a completely new system. Maybe it’s a setting change. Change the rules up into a new style But it can still be compatible with older systems without problems.
A hard fork can happen to any blockchain that uses crypto-currency technology, not just Ethereum or Bitcoin. Will receive a new system that has been updated to fix bugs from the original system There will also be a new coin being created. But the downside is that it can cause the coin price to fluctuate.
5. Upgrade will affect who?
In fact, it might be said that it affects everyone in the Ethereum ecosystem, but the main ones are affected. would be the number one miners It is followed by those who transact through Ethereum, blockchain and traders. Or anyone who has to deal with the price of ETH coins, because it will definitely affect the price.
– Miner
on the part of the miners Expect less mining payouts, as EIP-1559 ‘burns’ the base fee coins completely to create deflation on the system. which before the upgrade Miners are paid for their mining as Block reward + Fee, but after upgrading they will get Block reward + Tip instead and Fee will be burned.
– Transaction
It may result in the transaction. May have to pay a lower network fee. It’s not that the system charges less fees at all. But due to the new, more accurate calculation method causing exaggerated fees due to less miscalculation from the system
– coin price
For traders, token holders, or anyone else who has to do with the price of ETH coins, this is also relevant. Because of this upgrade It is one of the biggest upgrades in the history of Ethereum and it will definitely affect the price. which many bureaus analyzed that the price may go up because it is a solution to the original problem in the system And it’s an important step towards ETH 2.0, which will be a transformation to a Proof of Stake system model, but how much it will surge, no one knows. Or even the price may go down again, there is a possibility as well.
6. When is the upgrade date? What time is it?
For this London upgrade, the official schedule is During August 2021, the upgrade will occur in block 12,965,000, although a fixed date or time cannot be specified. But many bureaus predict that this will happen on August 4 or today, between 8 PM and 12 PM. However, on ethereum.org, the official website of Ethereum, there is a countdown at At the time of writing this article The remaining time is 1 day and 5 hours, which will be around August 5 at 6 pm to arrive. Which is why it doesn’t die at all. But it shouldn’t be more than two days.
7. If I hold ETH, how should I prepare?
If you are a trader or are holding ETH for speculation or whatever. The thing to keep an eye on is the price impact. as mentioned above This upgrade is huge in the Ethereum ecosystem and is expected to affect the price for sure. Many people may intentionally spoon first because they think that after the upgrade, the price may go up. Or maybe see a bright future for ETH as an incentive to buy?
But what should be careful about is We never know where the price will go after the upgrade. Because it’s not just an advantage. The downside, for example, makes miners pay less. So what will happen? Miners move to mine other coins. Including upgrades that slide and move again. It is not known when it will reach the ETH2.0 that everyone has been really waiting for. These may be one of the reasons why people decide to leave Ethereum and go to other blockchains, which is definitely not good for the coin price.
Article by : Pongsapak Rojana
refer:
https://ethereum.org/en/history/#london
https://www.posttoday.com/finance-stock/columnist/605730
*P.S. This article is not intended to guide investment. But to educate about the historic upgrade of Ethereum.
**Digital assets are high risk. Interested parties should study the information and assess the risks before making an investment decision.
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