The long-awaited London upgrade of Ethereum has finally started on the first testnet. The upgrade includes several major updates to Ethereum, but the most critical is none other than Ethereum Improvement Proposal (EIP) 1559. This update brings fee burning that makes Ethereum a deflationary currency. In one day since its launch on the Ropsten testnet with the upgrade, more than 88,400 Ethers worth over $174 million at current prices have been burned.
The Ethereum community will experience its most critical year ever with the blockchain project for the transition to Ethereum 2.0. The immigration and London upgrade are critical, this upgrade could positively change the future of Ethereum.
The London upgrade has finally started on Ropsten, the first testnet. It will then launch at weekly intervals on other testnets i.e. Rinkeby, Goerli and Hive. After testnets, Ethereum developers plan to deploy the upgrade on the mainnet.
Ethereum developers invited the community to contribute to the upgrade by testing it on “Ropsten”. It’s the only way you can make sure everything is fine before it’s deployed to the mainnet.
The London upgrade came with a series of EIPs, each of which wanted to somehow make Ethereum better. EIP-1559 is arguably the most critical, most distressing and conflicting update in the community. The EIP update changes the fee structure in Ethereum, firing potential miners and returning the fees to Ethereum owners. A portion of the fees will be burned with the aim of reducing the circulating supply and thus increasing the value of the coins in circulation.
Earlier this year, Ethereum miners staged a protest against EIP, which is threatening their livelihoods. They even threatened to “show strength” at this protest, but later backed off.
Within one day of the London upgrade launch, 88,483 Ethers worth $174 million were burned. This data was spotted according to Watch The Burn, the EIP-1559 tracking website. This is a turning point for Ethereum, as it means that the supply of Ether will decrease daily. If the amount of ETH burned exceeds the amount of ETH produced as block rewards, Ethereum becomes a deflationary currency.
However, it’s not just EIP-1559 that is critical to the future of Ethereum. As one blockchain engineer noted, the EIP-3074 will fix “one of the most overlooked security issues in Ethereum,” ERC20 validations. David Mihal explained that the EIP-3074 “will allow a user to approve a transfer, perform an action, and then revoke the approval in 1 transaction.”
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