The Ethereum ecosystem under the approaching positive stimulus of "London upgrade" and market rebound
Original title: "When the Ethereum "London Upgrade" catches up with the market rebound", author Jasmine
The Ethereum "London Upgrade" is ready and is expected to be activated at block height 12965000. The official blog estimates the time between August 3rd and 5th. The Chinese community predicts that the upgrade will be activated at 7:00 p.m. on August 5th .
Before that, it should be noted that users running nodes need to lock the official blog again and update the client.
Stimulated by the approaching "London upgrade" and the rebound of the encrypted asset market, ETH has gradually emerged from the haze of the market for more than two months. The highest price in 24 hours reached 2695 US dollars, an intraday increase of 5.53%, and an increase of 13.42% on the 7th. Outperformed BTC.
The outside world pays so much attention to this upgrade of Ethereum because it is an important stage of Ethereum in the 1.0 era, and multiple proposals will bring about improvements in network efficiency after the upgrade. Among them, the EIP-1559 proposal to change the current mainnet fee of ETH 1.0 is particularly concerned, because objectively, this update will bring about a deflationary effect on the infinitely issued ETH.
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Update the client version before "London Upgrade"
The "London Upgrade" announcement released by the Ethereum Foundation on July 15 has recently been updated. Developer Tim Beiko clarified the upgrade time again on the official blog and updated the version number of the client node.
"After the successful deployment of the testnet, the London upgrade is now ready to be activated on the Ethereum mainnet. It will go live at block 12965000, which is expected to be between August 3 and 5, 2021." It should be noted that in order to communicate with London Upgrade compatible, node operators need to update the client version they are running.
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Several client version changes
According to the average block generation time of 13.5 seconds on the Ethereum network, the Ethereum Chinese community predicts that the "London Upgrade" will be activated at 7:00 pm on August 5th.
The official Ethereum blog reminds that during the upgrade period, if ETH holders use exchanges, web wallets, mobile wallets, or hardware wallets, unless the exchange or wallet service provider used notifies the user to take additional steps, otherwise, what will the user do? None need to be done.
And if you are a miner, it is necessary to download the latest version of the Ethereum client and update the settings. Failure to upgrade will cause the miner to be stuck on an incompatible chain that follows the old rules, and will not be able to send ETH or after the upgrade operating on the Ethereum network.
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ETH 2.0 pledge rate rises implying future market expectations
The "London upgrade" just happened during the recent rebound in the entire market. The rise of ETH surpassed BTC, indicating that the market is cashing in on this benefit.
As of 6:30 on August 2, ETH was quoted at $2,644, an increase of 4.37% in 24 hours, an increase of 12.30% in the past 7 days, and an increase of 24.98% in the past 30 days. In the same period, the price of BTC was 40,772 US dollars, an increase of -2.19% in 24 hours, an increase of 5.67% in the past 7 days, and an increase of 22.38% in the past 30 days.
The strength of ETH reflects the market's expectations for the "London upgrade" of Ethereum. This expectation is due to the fact that the upgrade has brought about multiple proposals that affect the benefits of the ETH 1.0 network.
For example, the EIP-1559 proposal will improve the existing fee mechanism, and the basic fee paid by the user will no longer be collected by the miners, but will be destroyed, which objectively brings about the deflation effect of ETH; the EIP-3529 proposal supports Contract deployers take the initiative to clean up contracts and get Gas refunds, which will reduce network congestion and improve network stability; in addition, EIP-3541 will reject new addresses starting with 0xEF bytes, laying the foundation for future upgrades; EIP-3554 The proposal delays the difficulty bomb until December 2021.
The "London upgrade" is not only a transitional solution to the pain points of the current Ethereum 1.0 network, such as high fees and frequent congestion, but also a preparation for the future upgrade of Ethereum to 2.0. As the upgrade approaches, the pledge data of ETH 2.0 is also developing well.
In November last year, the Ethereum development team completed the preparation of the deposit contract for the 2.0 "restructuring", allowing users to pledge at least 32 ETH to become the verification node of the future 2.0 network. The settlement can only be executed after the completion of 2.0. Before that, users can only abide by the rule of "only pledge, no withdrawal".
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The total amount of ETH2.0 pledge exceeds 6.4 million pieces
OKLink data shows that as of July 31, the total number of ETH 2.0 pledges has exceeded 6.4 million, and the pledged amount accounts for 5.53% of the total Ethereum circulation, and the dual indicators have hit a record high. At present, the total number of validators has reached 201,519. With the recent recovery of ETH prices, the total daily income of validators has risen to 1116.87ETH, and the average daily income is 0.0055ETH. Analysts at JPMorgan Chase once predicted that the PoW-to-PoS movement of Ethereum 2.0 will allow the market in the form of Crypto Staking to grow to a scale of 40 billion US dollars, and exchanges such as Coinbase will benefit from it.
The pledge dynamics of ETH 2.0 has always been an important indicator for the outside world to observe the development of Ethereum and market expectations. Judging from the pledge data, the market's expectations for Ethereum are still increasing, and 2.0 is still an important node.
Keeping pace with the times is the brightest point of the Ethereum network. When problems such as network congestion, high fees, and energy consumption are criticized, the entire community, under the leadership of founder Vitalik Buterin, upgrades and expands Layer 2 etc. to solve the key pain points of the 1.0 era, and on the other hand, it is moving towards the direction of completely solving the problem-opening the road of "restructuring" from PoW (Proof of Work) to PoS (Proof of Stake).
What exactly will 2.0 bring?
“I think in the next 2 to 3 years we’re going to see it get cheaper to use ethereum, we’re going to see more different kinds of applications using ethereum, and the ethereum ecosystem is going to become more interesting. "This is Vitalik Buterin's answer.
