EIP-1559 was not the only thing in London Hard Fork
First of all, I would like to give a huge round of congrats to the Ethereum team and the folks working behind the upgrade especially Tim Beiko who is the running point for the London hard fork.
What is EIP-1559 and why it matters
This Ethereum Improvement Proposal(EIP)-1559 itself is by far the most complex, as well as incredible change, is done on the Ethereum network by far, which itself is a kinda life-changing moment for ethereum because after this the whole network will be a step closer to be a POS chain which ethereum have been trying to shift to for a very long time.
The one thing which I would like to emphases on is that with London hard fork there are 5 EIP’s on the network not just only the EIP-1559, which is by far the most popular and talked about an upgrade. Once again Remember it’s not only 1 upgrade proposal it’s 5 in total.
In total, the EIP-1559, EIP-3198, EIP-3529, EIP-3541, and EIP-3554 all are being done during the London hard fork with each one having its own attributes which adds value to the whole network overall.
EIP-1559
This is the most exciting which has two components. First, all the gas fees which we pay right now goes to the miners and some days ( Like Stoner cats Minting day’s) miners get a lot of profit from gas fees, but after this gas, fees will no longer go to the miners rather than the ETH paid as gas fees will be burned (i.e sent to an inaccessible address). Second, the auction-based gas system will be revoked by adding a base fee to every transaction, right now the person who pays more gets the transaction go through first so it's like a live auction but after this, they will have a base fee and you can tip miners.
With Gas fees being burned it adds a deflationary aspect to it which will make the price of ETH skyrocket leading to low supply with high demand.
Just to give an example of how big of a deal it is, if you go to this website you can see how much ETH is being burnt and within 6 hours of being live almost 2080 ETH have been burned already, remember guys the daily inflation of the ETH is 1800 and just within 6 hours more ETH have been burnt than it will be produced within 24 hours.
EIP-3198
This is like a sister proposal of EIP-1559, which increases the user experience over smart contracts so that traction that utilizes smart contracts should not be overpaying on fees.
EIP-3529
Currently, on Ethereum, you can get a refund on gas, which refers to the fee paid for transactions, when cleaning up after yourself on the network. Smart contracts and related data can clog up the network, after all.
While the gas refund for clean-up sounds good in practice, Beiko ( Lead for London Hard Fork)said, “What we’ve seen in practice is most of the refunds are not used for this. They’re used for when the gas fees become low on the network, people will fill up the network with basically junk data. And then when the gas fees are high, they’ll delete all that junk data and get those refunds back.”
Removing or reducing the refunds through EIP-3529, he said, will make the network more stable.
EIP-3541
It mostly sets the table for future updates, reserving some space within the network to create new types of smart contracts. “It’s like a neat trick to add new functionality to the [Ethereum Virtual Machine] without breaking anything,
EIP-3554
EIP-3554 would delay what’s known as the “Difficulty Bomb” to December 2021. The bomb, as it were, increases the difficulty for miners who race to solve complex cryptographic problems and earn ETH. The upshot is that the network would become slower.
Overall with EIP-1559 ETH has changed the game and may decouple from Bitcoin and would not be referred to as Altcoin rather it will be called with its name EThereum and the rest coins will be referred to as Altcoin.
I cover all of the details over my Livestream mentioned below.
