EIP 1559: Ethereum Updates Itself

On Thursday, an updated version of Ethereum was launched, which will be a major update on the existing one. This is what we thought people should know about it. EIP (Ethereum Improvement Proposal) 1559 is the official name of the update, and the purpose is to redefine the network’s gas (transaction) fees.

Right now, this fee is incredibly high (based on the bidding pattern and value, which can fluctuate rapidly). With the latest update, this process will be automated, and a fee will be set. This will attract more consumers, especially the casual ones, says Eric Conner (Co-author) of the update.

Also, the portion of the transaction fee will be destroyed, which will affect the supply chain, and the price will boost. The concept is a deflationary one, unlike others. Chief Strategy Officer from CoinShares, Meltem Demirors says this is a major change to the traditional approach. But it will need some additional help to serve the idea, she clarifies.

She thinks that it can power the Ethereum network, and boost its DeFi characteristics. The overall experience can drastically improve, however. She identifies that more advancements are coming in the market, like the introduction of PoS (Proof of Stake), a better algorithm.

Right now, Ether is positioned behind Bitcoin due to bullish market behavior. Due to this news, Ether’s price hiked up to $2,630.