TL;DR Breakdown
- Ethereum(ETH) experienced record-breaking congestion in the month of May.
- In order to reduce the congestion, Ethereum Berlin and London upgrades have been made.
- This activation of EIP-1559 will be succeeded by the launch of ETH 2.0.
Tim Beiko, an important developer in the Ethereum organization has made an announcement regarding the recent activation of EIP-1559 on the ETH chain. The London hardfork will be responsible for congestion management on the ETH chain. Back in the month of May when the ETH coin price was at its peak and its adoption was spreading like wildfire, the network experienced huge congestion.
There were various Dapp developers that experienced high transaction fees, and extreme congestion on the chain. For this reason, these developers decided to migrate from Ethereum to other networks that would be providing more suitable transaction rates and appropriate traffic. To solve the issue of congestion and high fee, developers decided to introduce upgrades.
Activation of EIP-1559 concludes a major day for Ethereum
Ethereum is shifting to ETH 2.0. This transition will see ETHa shift of consensus mechanism in ETH, i.e., from Proof-of-Work (PoW) to Proof-of-Stake (PoS). Before this major change happening, the developers are making sure no odd elements are left behind. Recently, a Berlin upgrade was added to the network and now, the London hardfork has also been deployed.
With the increase in the adoption of ETH, there are 2 more testnets that will be updated with the London hardfork activation. These updates will be live on the 20th of June. Tim Beiko tweeted that it took time to activate the upgrade because “mining is altruistic on Ropsten.”
Now the EIP-1559 is capable of adjusting a specified fundamental amount in accordance with the congestion.
“When the network exceeds the target per-block gas usage, the base fee increases slightly and when capacity is below the target, it decreases slightly.”
Tim Beiko
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