Gate.io Blog 🌈Ethereum🌈 Opinions on London Hard Fork

🌈Ethereum🌈 Opinions on London Hard Fork

06 August 15:05

What is London Hard Fork? (Easy explanation for beginners🥳)

A hard fork is, for example, replacing and upgrading your computer's hardware. As a result, old hardware is discarded and new hardware is installed. London is the name of this upgrade EIP-1559. EIP stands for Ethereum Improvement Proposal. So, let's talk about what's being improved by the London hard fork.

Recently, Ethereum's high gas fee has been mentioned a lot. EIP-1559 is an improvement plan for Ethereum proposed by Vitalik Buterin, the creator of Ethereum, to solve this issue. Gas fee refers to the cost incurred when processing a transaction. Simply put, it is a reward for miners who verify the transaction in the middle when a user sends crypto coin to another user.

Before the London hard fork, gas fees were paid to miners regardless of the stability of the network in a way that users calculate themselves. However, after the London hard fork, the basic fee is set according to the stability of the network, and the fee is paid by adding a tip. Therefore, you can avoid unnecessary expenses when paying commissions. Here, the basic fee is automatically burned, and tips excluding the basic fee are compensation for miners. Miners get a lower fee for verification. However, as the value of Ethereum increases as Ethereum is burned, miners can gain added value.

There may not be a variety of changes in gas fees through this hard fork. However, it is judged that it is meaningful that there is now a standard that is measured according to the stability of the network. It was burdensome to develop as a node based on the Ethereum block chain due to the usual reckless gas fee. With these changes, it is expected that the development of various DApps using the Ethereum blockchain-based smart contract platform will become more active.

Opinions on London Hard Fork

Brian Kelly, CEO of digital asset investment company BK Capital Management

“The London hard fork will significantly change Ethereum’s monetary policy. So, we expect a bullish outlook.”

Amsterdam Stock Exchange trader, Michael van de Poppe

“There will be a healthy correction before the Ethereum bullish happens.”

Dharma Capital Management Partner, Andrew Kids

“Ethereum’s current price is not considering software upgrades. It will be 5x the price.”

Crypto Analyst, Alex Kruger

"Upgrade is overrated."

Consensys CEO, Joseph Rubin

“The Ethereum ecosystem is like the Internet. Ethereum will surpass Bitcoin.”

Editor YB(Gate.io Korea, Marketing Agent)'s Comments

As we already know, Ethereum is building the largest blockchain ecosystem in this market. Now, Ethereum is improving the problematic ones one by one, further stabilizing and growing the ecosystem. If these steps are taken in the future, Ethereum will become an even more unique smart contract platform.

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🌈Ethereum🌈 Opinions on London Hard Fork

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