Image by WorldSpectrum from Pixabay
Ethereum Miners are dissenting against EIP-1559 upgrade
Ethereum is having some dramas because of the EIP-1559 upgrade that was scheduled to take place in July along with the scheduled London hardfork . EIP-1559, aims to improve users' experience in terms of gas fees, however that would come at the cost of Ethereum miners getting much reduced mining fees, which is why they are protesting against the EIP-1559.
This proposal has created a rift between the Ethereum community, with Ethereum developers facing resistance from miners on the implementation of the EIP-1559.
EIP-1559 will lead to reducing of mining rewards for the miners
Image by WorldSpectrum from Pixabay
EIP-1559 changes the way miners earn fees, that’s been giving them very profitable revenues with Ethereum fees having escalated high, getting out of proportion.
As Ethereum is a Proof of Work Blockchain, users pay mining fees to have their transaction included in the block.
EIP-1559, will have users pay an algorithmically determined burn fee to the Ethereum network, with miners set to get only optional tips from users. This is said to reduce Ethereum gas fees, while adding deflationary pressure on the price of Ethereum, as burning Ethereum would reduce Ethereum’s supply.
Ethereum users, developers would on the other hand benefit out of EIP-1559
The idea is a welcome one for us users and developers, with the latter desperate to find solutions to Ethereum’s escalating gas fees asap. However, this proposal is most disliked by Ethereum miners with them bent on not having their Ethereum mining rewards reduced.
Ethereum Miners show that they can if want gain control of the Ethereum Blockchain
Image by WorldSpectrum from Pixabay
Therefore, many Ethereum miners have got together to protest against the EIP-1559. On April 1, many Ethereum miners are planning to move their hashrate to Ethemine for 51 hours in “a show of force”.
Fortunately, they are not interested in attacking the Ethereum network, which is possible if the miners get together and get control of the Ethereum Network and do that classic 51% attack which is quite possible to take place on POW Blockchains.
Ethereum Developers have decided to have Proof of Stake Ethereum ready asap
This has made the Ethereum developers lead by Vitalik Buterin decide that Ethereum should be made into a Proof of Stake(POS) Blockchain as soon as possible, so that miners can’t blackmail them in this fashion.
Once Ethereum becomes a POS Blockchain, these miners would (sadly only for them) cease to have control on the Ethereum Network. Therefore, announcements were made that we can expect Ethereum to become a POS Blockchain more sooner than earlier with developers going to work over time to have Ethereum pass into that POS Blockchain.
Long wait for Ethereum to scale at least with those talked about scalability solutions
As for me, I am still waiting for those scalability solutions to come into force that have been talked about for a long time with the optimism scalability solution announced to be showing its worth soon with its implementation in the main net in this month of March, that is announced can scale Ethereum by a 100x.
Anyway...who cares about the troubles of a retail investor like me, stuck with Ethereum in Metamask that cannot be moved due to transaction fees?...
Taken from the follwing tweet thread
The above tweet explains somewhat my stance on Ethereum for a longish while.
Davis Lark explains this EIP-1559 episode of the rebellion of Ethereum Miners better here, so watch his Podcast.
So, can we expect Ethereum to be transformed into a POS Blockchain soon? What do you all think?.