The Ethereum London hard fork went live on Thursday at around 13:00 GMT, after a slight delay on the initial rollout date.
Speaking about the upgrade, Ethereum co-founder Vitalik Buterin stated that the launch’s success demonstrates that the ecosystem can make significant positive changes.
Buterin’s remark was aimed at skeptics who doubt the dev team’s ability to pull off ETH 2.0. While the London hard fork presented significant technical challenges, transitioning to a new proof-of-stake consensus mechanism is a far more difficult task.
Nonetheless, Buterin’s words demonstrate his confidence in delivering ETH 2.0, which he says will be available in early 2022.
EIP 1559 is the focus of the London hard fork.
The London hard fork saw the introduction of several improvement proposals, the most notable of which was EIP 1559.
In 2018, EIP 1559 was proposed as a solution to fee volatility and stuck/delayed transactions. Elements of the Ethereum community were opposed to the move. The main reason for this was the belief that miners’ rewards would be significantly reduced.
Opponents questioned whether the development work would be worthwhile at the time. Evgen Verzun, the founder of StealthMail, claimed that ETH 1.0 would be phased out in favor of ETH 2.0. As a result, why invest resources in a project that will be obsolete?
However, extortionate gas prices, most notably in the summer of last year, compelled the issue. The implementation of EIP 1559 means that gas fees are now more predictable, which should reduce price volatility. However, this does not necessarily imply lower fees, especially since users can still tip to jump the queue.
EIP 1559 also includes what is arguably the most important change to date: a revised monetary policy to burn base fees as a deflationary mechanism. Proponents anticipate that this will increase pricing pressure.
Buterin Is More Certain About Ethereum 2.0 Now
Buterin stated that he is more confident about the merge now that the London hard fork has been completed. The merge refers to running the ETH 1.0 and 2.0 chains concurrently in order to merge them at some point in the future.
When completed, the Ethereum network will be a full-fledged proof-of-stake network, which some belief is the future of blockchain technology. At least in terms of long-term viability.
Buterin claims that ETH 2.0 will cut the network’s energy consumption by up to 99 percent.
Ethereum recently had its best-ever run, with 13 consecutive daily green candles beginning on July 21. A sell-off on the 14th day was followed by a strong uptick in buyers, resulting in 13% gains over the next two days leading up to the hard fork.
So far today, ETH has taken a minor price drop, falling 3% to $2,745 at the time of writing.