Hello beautiful people of Publish0x! I wish everyone health, wealth, and longevity.
I have new information about the Ethereum network, it's mining community, and a newly proposed project in response to the current high network fees that is intended to be implemented by July 2021.
EIP-1559
What is EIP-1559?
Basically an Ethereum proposal to lower their network fees and improve the overall speed and energy usage of the network. Usage fees were traditionally paid to the networks miners. EIP-1559 on the other hand will now send fees back to the network in order to destroy the fee, "burn" the fee as they call it.
Check out this Coindesk article if you would like to learn more about EIP-1559 --> Ethereum EIP1559 GREEN LIT FOR JULY.
What does this mean for Ethereum miners today?
A large majority of the Ethereum miners are upset about the proposal, but that hasn't stopped the developers to move from POW (proof of work)(mining), the ability for any person with a capable computer equipped with a gpu. That appealed greatly to many already established pc gamers because they have made use of gpu's for gaming already so mining and gaming's seamless ability to tie together gave it that appeal to many people. Giving the Ethereum network the capability of being decentralized.
So now Ethereum intends to move forward with the EIP 1559 proposal to transition the network from POW to POS (proof of stake) in July of 2021 allowing the network to utilize staking (click if you'd like to learn more about staking) as a way to run and reward its network and Ethereum holders.
Even though all the miners cried out, including myself "Nooooo we're farmers, were miners, we don't want our profits to be reduced!", they said "we don't care dude, were the developers and we back holders! Were moving to proof of stake with Vitalik Buterin (Ethereum founder) it was fun but were done!" hahahahaha. It's really the same old story and I can't say that I'm surprised. I'm not here to be a bitter miner but I just think it should be talked about.
Lets answer the top questions in the mining community right now.
Will Ethereum still be minable?
Ethereum 1 will still be minable. They will have Ethereum 1(ETH) and Ethereum 2(ETH2), and once this proposal is implemented Ethereum 2 will be a fork of Ethereum 1.
When will Ethereum mining end?
Later this year. Maybe by 2022 or 2023, based on the past projects that have been proposed and delayed. This proposal has a high chance of being delayed as well.
What EIP-1559 is going to do is reduce the profitability of Ethereum gpu miners by about 30% in turn making the regular gaming computer rig less profitable compared to the newer ASIC miners (Application-Specific Integrated Circuit miners) which is hardware that is specialized for the sole purpose of mining Ethereum. These ASIC miners are usually really hard to get, or either sold by some shady Chinese company that jacks up the price whenever they feel like it. These machines are made with a couple thousand of dollars in the Chinese market and being sold for upwards of 20 to 50 thousand dollars a unit. It's absurd, but its not all absurd when these specific miners make about 200-300 dollars a day. So far from what I have been able to tell is that EIP-1559 will not solve the current gas fees that haunt the Ethereum network. Everyone hates the current gas fees of the network and is talked about almost everyday by new Ethereum users lately.
Did you know that Ethereum was supposed to be asic resistant, but yet once again like Bitcoins network, asic miners dominate. Resulting in China controlling a large portion of the crypto market.
Ethereum's reasoning behind this proposal is that miners are harming the earth and wasting to much energy. So they want to move to proof of stake, but with the complexity of the Ethereum network we know its not all that simple. They have been late on projects in the past so likely with this July projection it could easily be delayed like many of their other projects.
Lets analyze their reasoning and compare the energy consumption of the Ethereum network to the Bitcoin network it's really small in comparison! (click here to view energy consumption comparison) The decentralized movement empowered the world and empowered the everyday person to help run the network with the cost of energy that could be harnessed by the sun. Instead were just going to move to a bunch of Chinese asic server farms, ending the gpu miners rig profitability that was ran from out a home or the gaming rig you used to passively make money while asleep will be coming to end.
Now, Ethermine (huge ethereum mining pool) will not support the EIP-1559 proposal, on twitter.com they held this poll
Many content creators who cover Ethereum mining on YouTube are talking about the topic. I suggest you learn more yourself.
Conclusion
It's real simple when you think about it none of the developers are miners themselves, none of them! They are all huge Ethereum holders and they benefit greatly from proof of stake. They don't benefit from proof of work (mining) so why should they care about it, and also they give the reason of energy consumption which I agree the energy consumption is high but nothing like we've seen before ex. Bitcoin, Stock Market, Banking. It's a huge benefit for them and the network if they can accomplish getting rid of Ethereum mining sooner. Now you might think that people holding Ethereum will dump/sell their ether because they are mad and this will almost certainly bring the price down, short term. But likely this proposal will increase the price of Ethereum because of the EIP-1559 burning of fees that will reduce the amount of ether in circulation. Miners that act emotionally will sell their ether less than they probably would be able to get in the future because of their emotions. Now this is not investment advice but often times crypto does the exact opposite of what you expect.
fin.
Please tip, comment, like, or dislike below to let me know your thoughts on this. I want to know how you feel about this.
(?????) L??????¦ ,
adriang0m3z
