ChainIDE topic discussion #7 EIP-1559 protocol
With the upgrade of Ethereum London approaching, the EIP-1559 protocol has recently attracted much attention. We believe that everyone is familiar with Gas. It is an unit to measure the amount of computational work required by the Ethereum network to perform a specific operation, and the gas price is the total cost to perform a certain operation.
As Dapp functions are becoming more and more complex, and the number of operations performed by smart contracts is also increasing, the Ethereum network has begun to become congested, and users must pay higher transaction fees to incentivize miners to package transactions into blocks first. In addition, the increase in the usage rate of the Ethereum network has caused the price of ETH to rise. Both factors have contributed to the increase in Gas Price.
The EIP-1559 protocol is a solution to the pricing mechanism of Ethereum network transactions. It contains three points:
Adjust the block gas upper limit.
Add Base fee. All transactions packaged in the same block use Base fee as Gas Price, and this part of the fee will be destroyed by the agreement, and the miner will not be able to obtain it.
Add Tip. Miners can get this part of the cost, but the cost is determined by the user.
At present, blocks are often full, which is prone to congestion. After EIP1559 goes online, the capacity of the block to accommodate transactions will be doubled, but there is no guarantee that all transactions will be successfully packaged. In EIP1559, the gas price that users need to pay for the transaction is composed of Base fee and Tip. Although the base fee is a fixed price, it will also be adjusted according to the network congestion. When the block is higher than the target gas price, the base fee rising. When the block is lower than the target Gas price, the Base Fee falls. At the same time, EIP1559 stipulates that Tip cannot be increased without limit, so Fee Cap is set, which means that the sum of Base Fee and Tip cannot exceed Fee Cap. In order to ensure that the transaction is successfully packaged, users still need to pay the highest transaction fee amount Fee Cap, but in the end they will get the Fee Cap minus the difference between the Base Fee (which will be destroyed) and the Tip.
Now the trading market on Ethereum does not guarantee that all settlements will be made in ETH, but under the EIP1559 protocol, the Base Fee will be destroyed, and ETH must be required to be paid on the chain, which will make ETH the primary currency of the Ethereum network. In the future, as the ETH used as the base fee is continuously destroyed, the value of ETH itself will increase.
Talk about your views on the upgrade of EIP-1559
What impact will the EIP-1559 upgrade have on users, miners, and investors?
What are the disadvantages of EIP-1559?
Welcome to discuss here!