Is the long-awaited EIP-1559 from Ethereum worth the hype?
Is the long-awaited EIP-1559 from Ethereum worth the hype?
The cryptocurrency community is booming over the long-awaited start of the "London Hard Fork", or Style = "font-Weight: 400;"> ether EIP-1559, which is expected that it will cause major changes in the gas fee model of the blockchain. This is one of the most important steps that the blockchain takes to improve scalability and latency problems that have affected users in the past half decades or so.
Despite the improvements, the EIP-1559 implementation only partially solves one of the main problems that ethereum users complain about with high gas fees. The EIP-1559 In addition, the implementation of EIP-1559 is only a small part of the changes that are expected in the upcoming Ethereum 2.0-upgrade in early 2022. A significant deficiency of EIP-1559 is that the fees are not expected to be lower, but only predictable. The London Hard Fork will probably enable users to keep an eye on a fee and less often pay too much than the blind auction system. However, the basic fee will continue to be determined after the network is loaded, so that high fees continue to be a problem. is eip-1559 worth the hype?
👀innen Little of the first week after the introduction, Celers CBRIDGE helped more than 600 users, more than 1000 cross-chain-crossing asset transfers with a total volume of 2.5 million
Mainnet: https://t.co/35ficzsz3a #defi #Celr #Polygon #arbitrariness #binancesmartchain pic.twitter.com/3hjzzy2t2e
- Celernetwork (@Celernetwork) 2. August 2021
The CBRIDGE from Celer builds important scaling products in order to keep the ecosystem for decentralized finances (Defi) and the DAPPs efficiently and at the same time reduce the total gas costs for Ethereum. With the progressive layer-2 roll-up technology from Celer, several users can divide the costs of the individual layer 1 transactions trustworthy and without custody, which enables cheaper transactions.
Before we continue to deal with the defects of EIP-1559, we want to understand exactly what changes the implementation will bring.
The London Hard Fork implementation
The "London Hard Fork" with the Codename EIP 1559 will probably go live this Thursday (August 5, 2021) to change the transaction fee model from Ethereum and to start the destruction (or burn) of ETH coins. Originally planned for the start on August 4, the protocol upgrade was delayed due to some development problems.
First and above all, the change is about making transaction fees more predictable in order to increase the usability and reliability of the blockchain. Ethereum gas fees are currently being determined via the "blind" auction system that makes the system unpredictable because the users offer to have their transactions processed and verified first. As a result, the transaction fees skyrocket when the network is heavily overloaded.
In the EIP-1559-implementation, users pay a "basic fee" that is determined by the algorithmic network depending on the overload of the network. In addition, users can also "tap" miners so that their transactions are processed and checked faster. This “basic fee” model will keep the network charges predictable, i.e. h. The fees will not be volatile as in the past.
What Ethereum owners and investors enthusiastic about the EIP-1559 implementation is not the gas fee model, but the proposed burning schedule. Instead of paying the "basic fee" to the miners, it will be destroyed or burned, otherwise the miners would only artificially overload the network in order to earn higher fees.
A layer-2 solution is required
As already mentioned, layer 2 scalability solutions are still essential for the growth of Ethereum and the mass execution of defi protocols. Celer Network is a leader in providing affixes to the high transaction costs, since the community is waiting for the switch to Ethereum 2.0 Proof-of-Stake (POS) in 2022. The platform enables quick, simple and safe transactions outside the chain not only for payment transactions, but also generalized off-chain smart contracts
last month Celer terminated his Layer2.Finance , A Layer-2-Rollup-based Defi-Agregator. The aggregator enables users to interact with minimal costs with existing DEFI protocols. Layer2.Finance offers scalability for defi apps without the necessary chain migration, which increases the efficiency and mergability and reduces liquidity fragmentation across platforms.
"Layer2.Finance is a product from Celer Network that aims to bring a mass audience into the existing defi ecosystem with the Layer 2 scaling technology," says the team.
graduation
It is clear that the EIP-1559 upgrade will bring massive changes for Ethereum, but without solving the scalability problems and the high gas costs, very few users will be able to go on board. Since Ethereum 2.0 is still removed from the go-live, solutions such as CBRIDGE and LAYER2.Finance will enable defi users to use the products conveniently.
Nevertheless, users enjoy a cost-effective multi-hop value transmission between different Layer-2 networks and have seamless connections between Layer-1 chains.
Source: Crypto-news-flash.com
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