Ethereum has finally launched its much-awaited backward-incompatible upgrade ‘London’ at 12:34 UTC after the number of blocks on its blockchain reached 12,965,000 as scheduled.
The new hard fork includes five new Ethereum Improvement Proposals (EIPs) that aim to improve the user experience of the Ethereum network.
The London hard fork has received much media attention due to the introduction of many radical changes to its network. The anticipation of the upgrade led to a rise in the value of Ethereum and its trading volume recently surpassed Bitcoin.
The most interesting feature of ‘London’ is probably the implementation of the EIP-1559, which would drastically change the fee model of Ethereum. According to the new model, transaction fees will be charged according to the priority of the transaction. Higher fees would be charged if users want to prioritize their transactions and want them to be processed as soon as possible. This transaction fee would be destroyed in order to control the supply of Ether.
This feature has led Ether to become a deflationary asset due to supply control and reduced gas costs. Since the transaction fee would be burned, miners would have to rely on block rewards, transaction tips, and potentially Maximal Extractable Value (MEV) for rewards.
Other EIPs include 3554 which would delay the difficulty bomb from December 2021, EIP-3198 includes the addition of basic fee opcode, EIP-3529 would remove gas refunds to a lower level, and lastly, EIP-3541 would reject code starting with 0xEF.