Bitcoin broke through a record high of US$60,000. What about Ethereum?
Bitcoin surpassed US$60,000, setting a record high. On the other hand, Ethereum is relatively weak compared to Bitcoin’s strong market. The reason is that with the increasing congestion of Ethereum’s network, its high gas has become an obstacle for users to use Ethereum.
However, this problem may be alleviated in the future. In the past, the Ethereum community has been arguing about whether EIP-1559 will be implemented. On March 5, the core developers of Ethereum held a meeting and confirmed that EIP-1559 was officially incorporated in the Ethereum “London” hard fork upgrade in July. This proposal will replace the existing Ethereum fee policy.
The proposal was resisted and opposed by some miners.
However, the core developers of Ethereum was ready to respond their protests. Last month, the co-founder of Ethereum, Vitalik Buterin mentioned that if miners threaten to carry out a 51% attack, Ethereum will switch to the PoS consensus mechanism as soon as possible. In the past, when users transferred money on Ethereum, they are required to pay a gas fee to miners on demand, and miners could prioritize the transactions with higher gas fees. After the implementation of EIP-1559, the handling fee will be sent to the network itself as a base fee, and users can also selectively pay an inclusion fee to the miners. The setting of the base fee is also determined by the algorithm to make it easier for users to pay a reasonable fee.
The EIP-1559 introduces 3 changes to the Ethereum protocol. First, when users send transactions, they must pay the base fee according to gas. This base fee will be automatically adjusted according to the actual gas usage in the previous block. The base fee itself is a price. The adjustment goal is to make the actual gas usage tend to the content of the EIP-1559 proposal, which happens to be half of the block size of the protocol proposal. When the actual usage is higher than the target, it will be adjusted upwards, and vice versa. Second, the base fee paid by the user will be burned and will not be given to anyone. Third, users no longer can specify the gas fee when trading. They will be gives two parameters: the first is the upper limit of the unit price that he or she is willing to accept, and the second is the upper limit of the package fee for miners. This is the main content for EIP-1559.
In theory, this plan may end the Ethereum’s soaring fees, but it will also cause miners to lose part of their income, which some miners groups oppose.
With the development of DeFi in the past few months, the gas fees have soared, and half of the income of Ethereum miners comes from gas fees. Once EIP-1559 is implemented, it will directly affect the income of miners and naturally, it is not favored by miners.
The NGK blockchain has no lagging at all, and the handling fee is extremely low. In the newly launched NGKEX, the NGK ecological construction participants can choose the TRC20 channel to achieve zero handling fee, which greatly avoids the problem of high handling fees similar to Ethereum. The NGK official recently announced that its entire network has reached 8 million computing power. With that, the issuance of VAST mining has started, and the NGK ecological builders will obtain more benefits.
