Ethereum’s London Hard Fork is an upcoming upgrade to the Ethereum network that is set to go live in July 2021. This update is highly anticipated by the cryptocurrency community as it includes several key improvements to the Ethereum blockchain that are expected to make the network more efficient, secure, and user-friendly.
One of the most significant changes that will be introduced in the London Hard Fork is the implementation of the Ethereum Improvement Proposal (EIP) 1559. This proposal aims to address the issue of high transaction fees on the Ethereum network by introducing a new fee structure that includes a base fee that is burned with every transaction. This is expected to make transaction fees more predictable and reduce volatility in gas prices, which should benefit both users and developers on the network.
Another important feature of the London Hard Fork is the introduction of EIP 3554, which delays the difficulty bomb on the Ethereum network for another 12 months. The difficulty bomb is a built-in mechanism that increases the difficulty of mining Ethereum over time, eventually making it impossible to mine new blocks. By delaying the difficulty bomb, the Ethereum network will continue to operate smoothly while the developers work on transitioning to Ethereum 2.0, which will move the network from a proof-of-work to a proof-of-stake consensus mechanism.
Investors in Ethereum should be aware of the potential impact that the London Hard Fork could have on the price of Ether, the native cryptocurrency of the Ethereum network. While it is difficult to predict how the markets will react to the upgrade, historical data has shown that major upgrades to the Ethereum network have often been accompanied by price increases for Ether.
Additionally, investors should also be prepared for the possibility of increased volatility in the markets leading up to and following the London Hard Fork. As with any major network upgrade, there is a risk of unforeseen issues or bugs that could impact the network and cause price fluctuations.
Overall, the London Hard Fork is an exciting development for the Ethereum network that is expected to bring several improvements and enhancements to the platform. Investors in Ethereum should stay informed about the upgrade and be prepared for potential market fluctuations as the network undergoes this important milestone in its development.
