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Marketthereum blockbuster London hard fork upgrade completed, Ether first fell and then rose.



2021-08-09 14:00
  • Style: News
  • Related currencies: Defi
  • Market analysis: According to Coinmarketcap, Ether has risen by more than 5% in the last 24 hours to reach US$2787, and it has risen by 20% in the last 7 days. In contrast, Bitcoin has fallen slightly in the last 24 hours, at a level close to $39,000, and has fallen by 2.7% in the last 7 days. In recent days, the trend of Ether is much stronger than that of Bitcoin. In this upgrade, 5 community proposals are embedded in the code of the Ethereum network. Among them, EIP-1559 is a solution to the pricing mechanism of Ethereum network transactions, which has attracted much attention. The contents of the remaining 4 EIPs include: optimizing the user experience of smart contracts and enhancing the security of the implementation of fraud proof layer 2 networks ; solving the current attacks caused by the use of the gas return mechanism, thereby freeing up more areas Block available resources ; facilitate the future update of Ethereum ; help developers to better transition to Ethereum 2.0. EIP-1559 drastically changed the calculation method of transaction fees, making transaction fees on the Ethereum blockchain more predictable and cheaper. Users need to pay basic fees and priority fees when initiating a transaction. The basic fee is a fixed part of the network fee per block. The Ethereum protocol will determine the transaction fee through an algorithm based on the overall demand on the network. The basic fee will be destroyed, and the miner will not receive this fee. Priority fees are used to adjust network congestion. For users who want transactions to be executed as soon as possible, they can set high priority fees to ensure that transactions are included immediately. Why is this upgrade necessary? For transactions that occur on Ethereum, the previous charging scheme was an auction mechanism. The user bids, and the miner selects the transaction with the highest bid and packs it into the block. This method seems simple and efficient. In fact, there are some drawbacks, including: the transaction fee is unpredictable and sometimes extremely high; the efficiency of bidding is very low; the transaction may need to wait for several blocks to be packaged in, so it is easy to cause delays ; Security is in doubt. Before this hard fork upgrade, the market generally expected that EIP-1559 might cause the price of Ether to rise. In the past three years, the circulation of Ethereum has grown at a rate of 5% per year. Through the basic cost of burning Ethereum, the EIP-1559 agreement may reduce the annual change of Ethereum's circulation to 1-2%. The upgrade of the Ethereum network is of great significance, and it is the most critical upgrade before the iteration of Ethereum to Ethereum 2.0. At present, investors are particularly concerned about ESG. Compared with the energy-intensive Bitcoin blockchain, it is expected that Ethereum 2.0 will become more energy-efficient by the end of 2022. Ethereum 2.0 has shifted from the energy-intensive "Proof-of-Work validation" to the "Proof-of-Stake". Therefore, less computing power and energy consumption are required to maintain the Ethereum network.
thereum blockbuster London hard fork upgrade completed, Ether first fell and then rose.
thereum blockbuster London hard fork upgrade completed, Ether first fell and then rose.
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