Ethereum’s August 4 London upgrade in sight
Taking its final hurdles, the long-anticipated London upgrade for the Ethereum network is coming closer with deployment to the final testnet this week.
Sticking tight to its previously released schedule, the EIP-1559 upgrade is scheduled for August 4 following the launch on the Rinkeby testnet on Thursday. Rinkeby is the final testing phase before the mainnet goes live. The mainnet launch will occur at block 12965000 which will fall on August 4. The first block was produced on the Ropsten testnet on June 24, and the Goerli testnet deployed the hard fork on June 30.
Tim Beiko, Ethereum’s core developer confirmed that the code has now been successfully deployed to all three testnets.
The new code will bring an adjustment of the current auction mechanism for network fees. There will be a “base fee” instead of the existing first-price auction fee. In theory, the more transactions that occur, the more deflationary pressure that the burning of the base fee will have on the overall Ethereum supply. Although not intended to reduce transactions costs (gas fees), the upgrade could have this effect as the developers commented:
“As a side effect of a more predictable base fee, EIP-1559 may lead to some reduction in gas prices if we assume that fee predictability means users will overpay for gas less frequently.”
The Ethereum network will switch from mining to proof-of-stake consensus in the latter half of 2022 thereby also amplifying deflationary properties of the system.
On Tuesday, major investment bank Goldman Sachs noted that Ethereum could potentially overtake Bitcoin as the dominant store of value.
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Author: Peter Siu