Ethereum Improvement Proposal 1559 Scheduled For 4th August

  • July 12, 2021

Ethereum Improvement Proposal 1559 Scheduled For 4th August

Last week was an exciting week for Ethereum updates. The world’s largest smart contracts platform prepares to receive the significant EIP1559 upgrade on August 4, according to Ethereum core developer Tim Beiko in a recent tweet.

In the upcoming London upgrade, the fees optimization, security optimization, and scarcity engine will activate EIP1559 on block 12,965,000. EIP1559 could transform Ethereum into ultrasound money. This actively reduces usage supply, by burning it and producing minimum viable issuance.

However, this isn’t the only news to emerge from the Ethereum camp. The Eth2 Beacon Chain deposit contract has now locked almost 6.5% of Ether’s (ETH) supply.

Seeing the popularity, Sygnum AG, Switzerland’s first digital asset bank, reported on July 10 they offered ETH2 staking with up to 7% yearly yields.

Sygnum also offers institutional-grade custody. Top security and segregated wallets. As well as a simple interface to eliminate complexity from the staking process. It “offers a digital asset alternative for yield generation in today’s low-interest-rate environment,” according to Sygnum.

About Ethereum Staking

Ethereum staking allows anyone with 32 ETH (or fractions through some specialized protocols) to deposit on the Beacon Chain. The stakers then directly use it through a delegated party running a validator node. Its processing activity and providing security to the network trading constantly generated reward fees users pay.

Concerning EIP1559,

Ethereum co-founder Vitalik Buterin in 2018 proposed the Ethereum Improvement Proposal, or EIP1559. It will improve Ethereum’s security model, make transaction fees more predictable, burn ether supply, and improve the network’s user experience. It replaces a deterministic base-fee model for the first-price auction model, in which the base fee burns.

Benefits of Ethereum Improvement Proposal 1559

Ether miners would only profit from the “tip” network participants include getting their transactions mined faster.

EIP1559 also improves the Ethereum long-term security of minimum viable issuance by not paying miners and later validators any more than is necessary.

Further, it allows ETH to become deflationary, causing Ethereum supply reduction proportional to usage and resulting in an increase in its price, limiting its circulating supply.

This makes attacks expensive and the chain secure, once Ethereum completely switches to Proof of Stake (POS). It also synergistically assists Ethereum Layer 2 solutions, disincentivizes chain spamming further, and breaks economic abstraction.

Movine Oduor
Latest posts by Movine Oduor (see all)