The London hard fork became a series of Ethereum proposals also aimed at efficiency. The London Hard Fork will be held this month, July 2021.
Ethereum is a blockchain project that provides a network for the birth of new crypto assets. Even though Ethereum is the most popular in this regard compared to other blockchain projects, it still has its drawbacks.
One of them is an inefficient or expensive cost. Well, London Hard Fork will make it cost-efficient so that later it will be cheap.
This is the thing that developers have been waiting for, especially those who frequently use the Ethereum network. Like the Decentralized Finance (DeFi) and Non Fungible Token (NFT) communities.
Explanation of the London Hard Fork
The London Hard Fork is one of the EIP-1559 proposals. Ethereum will limit the rate of increase in gas fees and help moderate the volatility of transaction fees which will help bring more users into the ecosystem.
The London Hard Fork is a big step in addressing this problem. As of now, Ethereum still has a transaction speed of 30 per second. Previously, this was not a problem. However, the DeFi era made the Ethereum network boom.
Last year, Ethereum had faced problems bringing the DeFi space to anything, resulting in high transaction fees (gas prices). At any given time gas prices may fluctuate depending on grid demand.
The London hard fork introduced some changes to Ethereum. But the one that will probably have the most visible impact on end users is how it changes Ethereum’s fee structure.
The fees collected from users actually consist of two components. There is a base fee and a tip, after the London update, the base fee will actually burn.
Conclusion: London Hardfork Makes Efficient and Might Also Increase Prices
London Hard Fork Ethereum will make the Ethereum structure even faster and more efficient. Of course the cost is also cheaper.
In this structure, many ETH crypto assets will be destroyed or burned. This will reduce the maximum supply of ETH in the future. This will make the price increase. Because the harder it is to get ETH, the higher the price.
Fortunately, the supply reduction only occurs at the mining or staking level of Ethereum. SO, you can still get ETH crypto assets by trading on Indodax.
