although the ethereum 2.0 launch has taken place, there are still many steps to take for ethereum 2.0. a new announcement was made regarding ethereum development protocol (eip) 1559, one of the most important of these. ethereum core developer eric conner gave the community an important piece of information about this.
eip-1559 gospel for ethereum 2.0
conner, who was active in the development of ethereum 2.0, stressed that when eip-1559 was activated, they would “burn a lot of eth.” conner said that with too much eth burned, the new eth supply will be drawn near the zero to negative zone, so that they will make the transition safely.
EIP-1559 is going to happen.— eric.eth (@econoar) December 21, 2020
Then we are going to burn a lot of ETH.
Then we will have 0 to negative issuance, with security.
We won’t have to rely on a meme to do that.
what exactly will eip-1559, seen as one of the most important developments in ethereum 2.0, offer? along with the eip-1559, the network will offer a better user experience and stricter security measures. when necessary, the network will be supported with larger blocks for operations. after each eth operation in the eth network, a certain amount of eth will be burned.
what will eip-1559 do?
in fact, congestion, which is one of the biggest problems of the network, can be solved exactly with this development protocol. in the current network layout, eth users can manually adjust the gas fees for their transactions. but this allows some wealthy and opportunistic users to forward their transactions by paying higher gas fees. predictably, higher transaction fees raise the standard, leading to network congestion and incredibly high eth transaction fees.
the disadvantages mentioned above prevent or slow down the use of the network by mainstream audiences. the eip-1559 was designed to replace them. with this development protocol, a base fee will be determined for each transaction under the name “basefee” and opportunistic transactions will be prevented as mentioned above.
of course, burning eth as much as a fraction of the amount of gas used will give the ethereum network an inflation-resistant feature. continuous burning of a certain amount of eth can, in a way, achieve a point similar to the goal of bitcoin’s block reward model. it seems certain that the ethereum network, which has attracted the attention of institutional investors recently, needs such a scaling solution.
ari paul, cio of blocktower capital, also said that the offer to constantly reduce supply is one of the most important features of ethereum 2.0.