Can Ethereum EIP-1559 be implemented smoothly?

Editor's Note: This article comes fromGolden Finance, reprinted by Odaily with authorization.

Editor's Note: This article comes from

Golden Finance

Golden Finance

, reprinted by Odaily with authorization.

Today, Tim Beiko, an Ethereum developer and EIP-1559 contributor, submitted a proposal, which advocates adding EIP-1559 to the Ethereum London upgrade, and it is tentatively scheduled to be implemented in July or August 2021.

Tim Beiko believes that there is nothing wrong with the EIP proposal and it is ready to pass the normal network upgrade testing process. The next step is to get developers and other network participants (i.e. miners) to come to a consensus on this proposal.

EIP-1559 is a mechanism to optimize the Ethereum transaction mechanism, which aims to make the transaction fees on the Ethereum network more predictable and solve the problem of the current "pay-as-you-go" charging model. Its goal is to create a more efficient marketplace for fees and simplify the gas payment process for clients and application software.

News on February 25th, Ethereum developers Tim Beiko and trent have been conducting EIP-1559 community expansion reports since October 2020, and since January 25th this year, they have collected the top ten Ethereum assets with the highest total locked positions. Using the perspective of EIP-1559, the total lock-up volume of these Ethereum applications exceeds 21 billion US dollars. Most Ethereum applications such as 1inch, AAVE, Balancer, Curve, MakerDAO, Sushiswap support the implementation of EIP-1559.

EIP-1559 attempts to reduce transaction fees by introducing a fixed fee and burn mechanism. First proposed by Vitalik in 2018, it is expected to make the fee market on the Ethereum blockchain more predictable and relieve congestion.

In early 2019, the first price auction model for ethereum fees was so bad that eric.eth believed it was the first hurdle to mass adoption. This frustration is purely a user experience. This has nothing to do with the idea of ​​a burn fee. After the lack of response and understanding V God's thesis, I understood that was the best option and contacted V God. Then EIP-1559 was written together.EthereumEIP-1559 focuses on improving user experience and addressing inefficiencies in the Gas market. But at the moment the overall narrative of EIP-1559 has become "it's good because it burns ETH", which is kind of depressing. This is a nice side effect, but it's not why we should implement it. We may burn some ETH, but people expect too much of it. Not all parts of every fee will be destroyed, and once there is scale, fewer fees will be destroyed.

At present, the main problem is that a small number of Ethereum mining pools are jointly boycotting the implementation of the EIP-1559 proposal. On January 22, some Ethereum miners formed a cartel organization to prevent a currently controversial proposal EIP-1559 implementation. They said the proposal unfairly cut into their profits.

February 26, China

Ethereum

The mining pool F2Pool announced that it supports EIP1559, while Xinghuo Pool, another Ethereum mining pool in China, chose not to accept the deployment of EIP-1559. Subsequently, the bee mining pool also announced its opposition to 1559.

The current situation is that the opposing mining pools are worried that EIP1559 will affect the income of miners. From the perspective of deployment, if EIP-1559 is applied to the Eth1.0 chain, it will be deployed with the upcoming London hard fork. It is very likely to affect the income of miners.

However, some data analysts have shown that EIP1559 will not directly and significantly reduce the income of Ethereum miners to a large extent, which also means that EIP-1559 may not significantly affect gas changes. For example, judging from the existing Ethereum transactions, only 10% of the transaction volume paid super high gas fees, and if EIP1559 is deployed, these 10% of high gas transactions will still exist.

In fact, EIP-1559 will not fundamentally solve the gas problem, but provide more options, so the developers mentioned above will mention that this is a change to the experience, and it is to change the entire gas cost from the bidding problem to more Efficient and predictable.

If we think about EIP-1559 and gas fees, EIP-1559 actually triggers two points:

1. Eth1.0 chain deployment will affect miners' income.