Ethereum London hard fork FAQs
Everything you need to know about Ethereum's London hard fork and EIP-1559!
In this Article:
- What you need to know about the London hard fork
- When will the upgrade be live in Exodus?
- What you need to know about EIP-1559
- Did the London hard fork create another token?
What you need to know about the London hard fork
Ethereum’s London hard fork is now live at block height 12,965,000, which took place on August 5, 2021. It consisted of five Ethereum Improvement Proposals (EIPs), all of which pave the way for Ethereum’s transition in the future from Proof-of-Work (PoW) to Proof-of-Stake (PoS).
One EIP of note is EIP-3554, which delays a substantial increase in difficulty for Ethereum miners, known as the “Difficulty Bomb,” until December 2021.
The most important EIP, however, and the most controversial, is EIP-1559.
When will the upgrade be live in Exodus?
We recommend updating your wallet to the latest version to access Ethereum's new fee system.
What you need to know about EIP-1559
EIP-1559 changes how transaction fees work on the Ethereum blockchain in two ways.
First, it adds a base fee to every transaction that takes place on the Ethereum blockchain, including all Ethereum and ERC20 transactions. It is expected that this base fee will lower overall costs to the user, because it will improve estimating the amount of gas needed to send a transaction.
Second, after EIP-1559, transaction fees will no longer go to miners, but to the Ethereum network itself.
Currently, Ethereum users pay a gas fee to miners in order for their transaction to be confirmed (i.e. included in a block). After EIP-1559, the gas fee will be sent to the network, and then burned, or taken out of circulation.
These base fees are set using an algorithm, in the hopes that it will make it easier for users to pay a fair price. There will be an additional option to pay a tip to the miners in order to prioritize a transaction and make it confirm faster.
Burning base fees could also result in decreasing the circulating supply of Ethereum, which may make Ethereum a deflationary, rather than an inflationary, currency.
Did the London hard fork create another token?
No! Often hard forks will lead to the creation of another token (such as the fork that created Ethereum Classic in 2016). However, in this case, you can think of it more as a network upgrade. Ethereum protocols changed, but it is still the one and only Ethereum!