According to Ethereum devs, EIP-1559 may launch in July. But contrary to popular belief, EIP-1559 will not solve the network’s congestion or high gas fees. So, if EIP-1559 will not solve the pressing issues of the Ethereum blockchain what is it for then?
For starters, the EIP-1559 proposal seeks to introduce a concept of “block elasticity.” At its core, the proposal seeks to reform the Ethereum fee market by introducing two key changes. First, the current gas limit will be replaced by two values, a “long-term average target” that is equal to the current gas limit, and a “hard per-block cap,” which is twice the current gas limit. Secondly, the proposal introduces a base fee that is adjusted on a block-by-block basis and compulsory for transactions to pay. Furthermore, the base fee will be burned, making Ethereum deflationary. The Ethereum team explained in an EIP-1559 FAQ that:
“Essentially, instead of all of the short-term volatility in demand for transaction space within a block translating into volatility in transaction fees, some of the volatility instead translates into volatility in block size.”
Does EIP-1559 solve the gas fee concerns?To an extent, EIP-1559 might be able to lower Ethereum’s high gas fees. However, it is not enough to solve all the problems. Abdelhamid Bakhta, one of the six primary authors of EIP-1559 told crypto news site Cointelegraph that:
Ethereum miners have expressed their disapproval for the upcoming upgrade, going as far as threatening to move their hash power elsewhere. In an ultimate show of force, some miners decided to perform a hard fork of the current chain to retain PoW mining.
In conclusion, users of the Ethereum blockchain should not expect that all their gas concerns will suddenly vanish with EIP-1559.
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Source: Cryptocurrency - investing.com
