When miners reach block #12965000, Ethereum will fork. Around the 4th or 5th of August, that block will be achieved. The Ethereum blockchain is currently at block 129512300, indicating that there are less than 20,000 blocks till the London hardfork occurs on the network.
What is EIP-1559 and how does it change Ethereum?
The Ethereum Improvement Proposal 1559 (EIP-1559) aims to improve the blockchain’s fee mechanism. The auction will be replaced as the primary method of calculating gas fees in the new proposal. Users currently bid a certain amount of money to have their transactions processed by the Ethereum network. The current operating premise can be summarised as “the more you pay, the faster the transaction.”
By providing a base incentive for miners, the new proposal entirely transforms the way transactions are processed on the network, allowing consumers to enjoy a more consistent fee structure on the network and pay less for transactions.
How will hardfork affect the price of Ethereum?
This question has no definitive answer. From one perspective, the base fee’s implementation will result in more ETH being burned over time. Miners, on the other side, will receive lower payouts, putting Ethereum’s future in jeopardy.
We can’t ignore the deflationary effect that a gradually decreasing supply could have on the currency’s price. The hardfork is most likely to happen on August 5. The Ethereum price is now not reacting to the news in any way and is simply following market sentiment.
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