MyEtherWallet CEO Notes Two ‘Critical’ Components of Ethereum London Upgrade

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Ethereum underwent an upgrade on Thursday, resulting in a number of changes to the network’s blockchain. MyEtherWallet CEO and Founder Kosala Hemchandra highlighted two particularly important changes.

“The London upgrade adds about 5 changes to the current Ethereum network; however, I think only 2 of them are crucial for everyday users, ”Hemchandra said in comments sent to Cointelegraph. Noting “the time bomb delay” as the first of the two, he added:

“Since the inception of Ethereum, there has been a hard-coded value basically responsible for ensuring that Ethereum switches to PoS or ETH 2.0 on time. This value is responsible for making the difficulty of the block exponentially difficult after a certain number of blocks, making it impossible for miners to mine new blocks and they have to switch to the ETH 2 network. However, due to development delays, this time bomb has continued to be delayed and in the fork of London it will be postponed one last time. “

Ethereum has suffered from scalability issues in recent years, particularly evident in the high fees present when using decentralized funding solutions, or DeFi. In the long run, Ethereum 2.0, or Eth2, seeks to bring scalability to the Ethereum blockchain, which includes moving to a proof-of-stake, or PoS, consensus mechanism. The Eth2 roadmap officially started in December 2020.

Ethereum’s recent hard fork in London included five Ethereum Improvement Proposals (EIPs). One of these proposals, EIP-1559, seeks to give the blockchain a deflationary effect on its native asset, Ether (ETH). Hemchandra noted EIP-1559 as the second major change brought about by the London hard fork.

“EIP 1559 is the much-debated change that, in essence, changes the structure of Ethereum tax charge management,” he said, adding:

“This will bring about some major changes, such as removing transaction fees, which will reduce the increase in overall ETH in circulation. However, since minors will no longer receive the tx fee as an incentive, this change has been hotly debated. This change also brings a tip mechanism to tip minors to include your tx, and that tip will go directly to the miner and not be burned.