The London hard fork is a highly anticipated upgrade on the Ethereum network that went live on August 3rd. With the debut of the new upgrade, the investors started to take a greater interest in the network, and the price for ETH started to climb up. This upgrade introduced five new EIPs or Ethereum Improvement proposals, namely 1559, 3554, 3541, 3198, and 3529.
Most investors are excited about the EIP-1559 as it can set Ethereum on a deflationary pathway. With this EIP, the gas or transaction fees on the network can be managed. Before the said protocol the all transaction fee went directly to the miners. However, now any additional gas fees are burned, which means a lower profit generation for miners.
Speaking on the matter of EIP-1559 protocol, Kent Branton, who heads research and development at ShapeShift, claimed that it could face some hindrance in the beginning. He further explained that after the initial friction and resistance period, the wider Ethereum investors are going to absorb the shock. This protocol has added the option of tipping the miner if the investors are willing to do so.
Branton told the media that to recover from the shock of reduced incomes, many miners have resorted to the MEV or Miner Extractable Value model. This is a metric that allows the miners to measure the probability of profit margins from prospect validators and sequencers. This places them in a better position to determine which blocks to mine first and thereby increasing their chances to earn incentives from the investors.
Ethereum’s New Transition can Help Bitcoin to Reach $100,000
Mike McGlone-Senior Financial Strategist at Bloomberg, recently claimed that Ethereum’s new transition could pave the way for Bitcoin to get a $100,000 evaluation. It should be noted that the London hard fork is the penultimate upgrade that precedes the conversion of the network from the Proof of Work to the Proof of Stake consensus model.
Another crypto analyst claims the London hard fork is not just going to make a massive impact on the Ethereum network. With the new opportunities created for NFTs, Dapps, Defi, and the decreasing popularity of CeFi among the masses, it is only a matter of time, and more people want to gain exposure to the blockchain tokens and altcoins. According to ConsenSys, Ethereum can turn into PoS before the end of Q1 of 2022.