The London Hard Fork is Here: Ethereum Rising
BLOCKWORKS EXCLUSIVE ART BY AXEL RANGEL

The London Hard Fork is Here: Ethereum Rising

By The Lynx | Crypto Lynx | 3 Aug 2021


What is the London Hard Fork and how will it benefit Ethereum?

According to Blockworks, “In software parlance, a hard fork is a split in the underlying base code of the software that takes it a different direction than before. Common in the blockchain and Web3.0 world, a hard fork allows groups with a different vision to take software in a different direction from the founders’ vision.”

Ethereum 'Hard Fork' Means Lower Gas Fees and Higher ETH Pricing - Blockworks

Also referred to as “EIP-1559,” the London Hard Fork will make Ethereum transaction fees more predictable and will make the Ethereum ecosystem easier to use. It will also begin the process of burning Ethereum. This event is scheduled for August 4th or 5th, 2021.

Currently, one of the hang-ups that many crypto traders have with Ethereum is that transaction fees can be really high and hard to predict. Ethereum has used an auction system up to this point. Users bid against each other on the network. The busier the network is, the higher the fees go. This slows down the growth of Ethereum.  

EIP-1559 will allow users to pay a base fee of sorts that is algorithmically determined instead of the bidding process. It will be smoother, quicker, less volatile, and more predictable. This is just one step towards lower fees. Ultimately, fees may not go much lower until Ethereum 2.0 is launched sometime in 2022.

867c32aacfab0052429127246183e8d735f40ec3c04a09c7bb12b6ba8289add3.jpg

Perhaps just as significant as the above stated change to the Ethereum network is the burning of ether. If there are fewer ether coins available, prices should be driven upwards, as long as the demand is still the same or higher. In the long-run, the burning of ether may have an effect similar to what we have seen with the history of the finite Bitcoin.

Can we expect a short-term bump in Ethereum prices? Have we already seen the bump in recent days? I cannot say with certainty. Some sources are predicting Ether prices to move somewhere in the $5000 to $10,000 range. We have heard this before, but now there is more substance behind the claim. It think that we will eventually get there; however, it may not come until Ethereum 2.0.

I do think that we can conclude that Ethereum is moving in the right direction as a network and has a strong future. Altcoins based on the Ethereum network would seem to enjoy a boost as well. This bodes well for BAT tokens, OMG, BNT, REP, ZRX, and others.

The Lynx

www.cryptolynx.co

 

How do you rate this article?


32

0

The Lynx
The Lynx

A musician, artist, writer, hiker, gamer, avid reader, and crypto-enthusiast. I am a person always seeking for new ideas. My name "Lynx' goes back to a nickname in college. I have an online support group for those suffering with grief: www.lifelynx.net.


Crypto Lynx
Crypto Lynx

This blog will inform and entertain. From the perspective of a professional writer and educator with many hobbies, I take a common sense approach to sharing advice and information. I am not a professional trader; therefore, always buy, sell, and trade at your own risk. The information in this blog will be well-researched and factual to the best of my knowledge. Yet, what you do with this information is your decision. www.cryptolynx.co www.coinslynx.com

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.