Ethereum EIP-1559 upgrade launches on Ropsten testnet as London hardfork nears
|- The London hardfork is nearing as Ethereum has deployed its first testnet as part of the upgrade.
- The first block was produced on the Ropsten testnet on June 24.
- The upgrade will include the implementation of the long-awaited EIP-1559 modification.
One of the most anticipated updates for the Ethereum network in 2021, the London hardfork scheduled for July, includes a controversial Ethereum Improvement Proposal (EIP) 1559.
Ethereum transaction fee mechanism to be altered
Ethereum core developer Tim Beiko announced that the London hardfork was activated on the Ropsten test network on block height 10499401.
While this activation process took longer than expected, this marks the first step as part of the London upgrade on testnets on Ethereum.
Since a lack of miners have upgraded their equipment in time, the Ropsten testnet is validating blocks with reduced speed.
The upgrade will see the implementation of the highly anticipated EIP-1559 that will change the way transaction fees work on Ethereum.
Miners currently receive revenue from two main sources, including a block subsidy and transaction fees. The proposal removes transaction fees as an income source for miners and replaces it with the inclusion fee.
Ethereum miners would likely earn less from just the inclusion fee since it is both optional and an additional fee on top of the base fee users pay for their transactions.
It is difficult to determine how much lower revenues would be for miners after the proposal comes into effect. ETH miners can also receive an additional lesser-known revenue stream, known as miner extractable value (MEV), which reorders or reorders or censors transactions on the network.
The next phase toward the full rollout of the London hardfork is the deployment on the Goerli testnet scheduled for June 30. The last testnet, Rinkeby, is scheduled for July 7, and the final London hardfork upgrade will be rolled out on the Ethereum mainnet later in July
While the London hardfork and the EIP-1559 would not result in a massive reduction in gas fees, the introduction of a more predictable base fee may lead to “some reduction in gas prices,” according to Ethereum software solutions provider ConsenSys.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.