Ethereum To Launch EIP-1559, Initiative For High Gas Prices - Kakiforex.com - Financial Market Media No. 1 in the World Ethereum To Launch EIP-1559, Initiative For High Gas Prices Ethereum To Launch EIP-1559, Initiative For High Gas Prices

February 22, 2021

Ethereum To Launch EIP-1559, Initiative For High Gas Prices

 The Ethereum network, which is often a hot topic due to high gas prices (transaction fees), will eventually find an end with EIP-1559 as a solution to the problem.


EIP-1559 or known as Ethereum Improvement Proposal 1559 began to be a focus that is closely related to the improvement of the network since ETH 2.0 was launched on 1 December 2020.


As more and more transactions are carried out, pushing the network becomes busier, eventually causing gas prices to become more expensive. Usually, the price of gas is $ 17. However, during this month alone, gas prices have risen several times to $ 25.


The existence of EIP-1559 will introduce a mechanism that can adjust the current auction process to determine the transaction price. This will allow the user to pay the lowest bid for the block.



In short, it is a dynamic solution, dividing transaction fees in Ethereum into base fees and tips, while payments that have been used will be burned to reduce ETH inflation.


The launch of the upgrade is expected to take place in July with the ‘London’ hard fork. Hardfork means any radical change in some protocols for blockchain networks.


However, the EIP-1559 will not directly affect the price of ETH but will affect its supply. In fact, this improvement is expected to bring the price of ETH to $ 20,000.


At the time of writing, ETH is trading at $ 1,881, down 3.09% in 24 hours.