One major challenge on the Ethereum blockchain until lately was congestion and high transaction fees. Members of the Ethereum community had this issue to contend with and it didn’t seem there was going to be any respite soon.
Other networks, especially the Binance Smart Chain (BSC) seemed like alternatives, however, they stopped short where the coins built on the Ethereum network could not function on them; although in some cases they can, that is if they are wrapped.
The high-fee challenge spurred the Ether community to introduce improvement proposals that would address the issue. One of the proposals made is the EIP1559 which implements what is known as a ‘base fee’ for transactions on the network.
The EIP 1559 comes alongside other improvement proposals scheduled to be part of the London Hardfork to be integrated into the network. The London Hardfork will herald the coming of full launch of Ethereum 2.0 in 2022. Ethereum 2.0 is a trajectory from the Proof-of-Work consensus algorithm which 1.0 is built on as it will function on PoS consensus.
The base fee proposal is already being implemented as users on the network have noticed a significant change in gas fees. At the beginning of the week, reports revealed that gas fees went for as low as $0.12, which was virtually impossible during the high gas fee challenge.
Users to Return to Ethereum Network Following Improvements
What this means for the network is that the myriad of users who deserted it due to exorbitant gas fees will now return in their numbers. EIP 1559 will also incorporate the deflationary mechanism on the network, which will definitely see ETH’s price reach the moon, literally in the coming months.
The Ethereum network has proven pivotal to many innovations in the crypto and blockchain space. The network pioneered smart contracts, DeFi and NFTs. Hence, the improvements on the network were inevitable in order to make room for the burgeoning number of users and projects. With the improvements, users can now worry less about congestion and high gas fees.