Details Regarding EIP-1559 and Ethereum’s Next Protocol Update

8:44 am, Mon, 21 March 22

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The EIP-1559 is one of the most prominent upgrades of the Ethereum network. The main purpose of launching this upgrade was to speed up the mining of Ether (ETH), the native cryptocurrency of the network. Several other improvements, such as reduced gas fees, were also noted for the Ethereum network, thanks to EIP-1559.

As per reports, the upgrade mentioned above keeps burning ETH tokens, which has now reached a significant number. The Ethereum network is also preparing for its next protocol update, details of which are mentioned below.

Ethereum is the most popular altcoin in the market and is currently trading at $2,870 (at the time of writing). Some crypto enthusiasts in favor of ETH also anticipate that the altcoin might outperform the flagship crypto asset in the future. However, that is yet to be seen in real life.

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Is Ethereum Ready for the “Merge”?

The EIP-1559 was the popular fee-burning proposal of the Ethereum network. It was launched in 2021 and has now reportedly burned 2 million ETH. This upgrade also adds deflationary pressure on the ETH token and reduces the supply over time. This is anticipated to drive up the price of the ETH token, however, it is yet to be seen in real life.

After this London hardfork upgrade, the next major protocol update for the Ethereum network is the “merge”. This is the transition of the network from being a proof-of-work blockchain to a proof-of-stake blockchain.

This update is popularly known as the “merge” and will see an incorporation of the Beacon Chain with the Ethereum mainnet.

This transition to proof-of-stake mechanism is one of the biggest events in the history of the Ethereum blockchain. The excitement towards the “merge” grew even more after it successfully took place on the Kiln testnet recently.

Here are some of the factors that are expected to change due to the merge:

  • Key protocol change where ETH stakers will be paid instead of miners
  • The network is likely to become 99.95% more energy efficient
  • ETH emissions will be significantly reduced

Due to EIP-1559 routinely burning ETH tokens and the completion of the “merge”, ETH is anticipated to become a deflationary asset. If you are interested in buying the altcoin, it is helpful that you take a look at Ethereum’s price and then purchase the digital asset.

Information to Have as a New Crypto Investor

The launch date of the merge is yet to be confirmed but it is anticipated to be some time in June 2022. This merge will change numerous things for the network and will also positively impact the ETH token.

There are several aspects you need to know as a crypto investor who is new to the crypto space. Choosing a secure crypto exchange that suits all your needs is one of the most important aspects to consider. Once you find a secure exchange it is also important that you keep an eye on the price movement of the digital assets and know when to invest.

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