A wide debate has been going on for days on the Ethereum Improvement Proposal 1559, which will change some features of the Ethereum blockchain in July 2021.
EIP 1559 introduces a new mechanism concerning the validation of transactions by miners and a supply burning mechanism that will burn part of the gas fees and therefore part of the circulating supply. So Ethereum is going to introduces a deflationary mechanism, that is an excellent move.
But the most important thing that everybody of us HODLers is wondering is whether EIP 1559 will truly be able to make Ethereum more scalable and reduce skyrocketing transaction costs.
Unfortunately Abdelhamid Bakhta, one of the six principal authors of EIP-1559, cooled our enthusiasm- He revealed to Cointelegraph that the purpose of EIP 1559 is not to reduce network congestion and high tariffs, but rather, to try to introduce the concept of "block elasticity", which means that the theoretical maximum capacity of the platform is doubled. He further added:
Transaction fees are a function of supply and demand. And technically, there is no increase in the average available block space because the base fee mechanism is designed to tend to half of the maximum block capacity. So, the short answer is no, the upgrade will NOT be the long-term solution that Ethereum needs to resolve its scalability problems.
However, he then added a more optimistic note:
As more and more layer-two solutions continue to be adopted, all of the network’s fee and congestion issues will eventually be sorted out.
For further information: https://cointelegraph.com/news/a-london-tour-guide-what-the-eip-1559-hard-fork-promises-for-ethereum?utm_source=Telegram&utm_medium=social
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