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There Is More To EIP-1559 Protocol Of Ether Than Just Basefees

This week, the price of Ethereum (ETH) dropped 15% as compared with the altcoin even dipping to $1,651 momentarily. The developments related to the blockchain have not been stopped even though altcoin is struggling for its price. Indeed, the London upgrade incorporated the Ropsten testnet on June 24. Time Belko, lead developers, disclosed in a tweet after the production of the first block on the testnet that they had a block which spent more time the expectation but London got live on Ropsten.

The EIP 1559 (the hugely praised EIP because of its innovative modifications) was added to the upgrade following Berlin. This EIP will customize the network by adopting the newly developed calculation mechanisms for transaction fees. Nonetheless, this EIP is not limited only to affect only the transaction fee.

EIP-1559: overview

The much controversial and awaited protocol development is finally being utilized in the testnet. It is noteworthy to have a look at the advancements being brought by it else than just fees. Although, one of the most discussed and significant features of the protocol is considered to be the convenience in fees yet the other facets such as breaking economic abstraction, additional incentives during the temporary reorganization, and security aspects are also the considerable contributions included in the network.

DOS attacks prevention

Evan Van Ness, a popular blogger of cryptocurrency, stated in a Twitter thread that EIP-1559 is a decisive security update. Though the Berlin upgrade was attention grasping in confronting the DOS threats face by Ethereum-1559 even then this development will turn out to be central in this respect as the consumers who spam, would be hugely charged.

Layer 2 adoption

At the time, the $0 gas price is being charged to the miners for conducting payouts and mining pools. Nonetheless, under the 1559 protocol, half of the base fee will have to be burnt by the miners for doing the above-mentioned processes. For the use of sidechain or layer 2, the mining pools will be provided with benefits. The assistance will also be provided for the adoption of layer 2 by making space on the block.

Little incentives in the short-term reorganization

Admitting that the miners can create unfriendly incentives for the stability of the chain, the ratio between transaction fees and block rewards will change with 1559. Subsequently, this will reduce the incentives for the leading transactions.

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