Buterin: London Hard Fork Shows Ethereum’s Ability For Big Change
Ethereum’s most anticipated upgrade ever was carried out on Thursday, 5th August. The upgrade has already started burning up to 3 ETH burned per minute in the last 24 hours. After the upgrade rollout, the Ethereum co-founder Vitalik Buterin commented that the upgrade shows the network capability to make significant changes.
The successful upgrade has no increased user and investor faith in the network. Buterin sees the successful London hard fork as another step towards moving to ETH 2.0: EIP-1559 that changed the fee structure being very important part of this upgrade. Along with EIP-1559, the gas fees generated from transactions are actually burned, instead of being given to miners to be put back into circulation.
The introduction of this base fee makes it so that transactions are transparent to users. With more accurate fee estimations available for users when sending transactions on the network. This base fee is then burned, reducing the amount of new ETH being put into circulation.
Buterin Confident About The Transition To ETH 2.0
Buterin said in an interview with Bloomberg that EIP-1559 was the most important part of the upgrade. The upgrade to ETH 2.0 continues to be the focus of the Ethereum team going forward. And with the hard fork working as intended, the co-founder is more confident in the move to ETH 2.0.
The merge that will see the network move completely to ETH 2.0 is scheduled to happen in 2022. After numerous delays had pushed the estimated time of arrival even further back.
Vitalik himself had confirmed that the problem was not a technical one. But that the problems had more to do with the people working on the project. Earlier stating that he had underestimated the time it would take to complete the merge.
Nevertheless, the co-founder remains committed to seeing the network move to the new mechanism. Vitalik said to Bloomberg that the London Hard Fork “definitely makes me more confident about the merge.” Continuing on further to say that the upgrade was “proof that the Ethereum ecosystem is able to make significant changes.”
ETH Price Action
Ethereum price has recently seen a significant uptick in its price and usage. Things like NFTs which are deployed on the Ethereum network have contributed to this increase in value. NFTs continue to grow in popularity as significant figures jumping on the train to issue their own NFTs.
ETH price has thus seen recoveries following this. The successful launch of the London Hard Fork has sparked renewed enthusiasm in investors, and has put pressure on the price of ETH – leading to a surge in the price of the second largest crypto asset by market cap.
The weeks leading up to the launch of the hard fork saw the price of Ethereum spiking as the date drew closer. Increased fees due to traffic congestion have been a recurring pain point for investors. And the EIP-1559 was meant to solve part of this issue by bringing in a whole new fee structure. While simultaneously introducing new ways for ETH to become deflationary over time.
ETH price is currently trading at $2,911 at the time of this writing, recording 18.53% gains in a weekly chart. Ethereum’s overall market cap stands at $338 billion.
