Co-founder of Ethereum Vitalik Buterin thanked everyone involved for upgrading the beacon chain that went online yesterday. After years of development, Ethereum’s proof-of-stake concept is finally a reality.
Congratulations on getting started!
– vitalik.eth (@VitalikButerin) 1st December 2020
The beacon chain, or phase 0, is the first step on the long road to moving towards a consensus mechanism for evidence of deployment. With this, Buterin tweeted a revised roadmap that describes this trip in detail.
“The roadmap I created in March has been updated with (very rough and approximate!) Progress bars showing what has been done and some of the recent changes to the roadmap itself. Much has been achieved, but much remains to be done to do!“
Source: @VitalikButerin on Twitter.com
Ethereum 1.0 and the beacon chain are currently running in parallel. With the mammoth task ahead for developers, the end product is likely years away.
In the meantime, Ethereum 1.0 still has some limitations. Most urgent are the high gas charges.
The Ethereum Improvement Proposal (EIP) 1559 was first published in 2018 to address this issue. As a suggestion, however, it is still unclear whether EIP 1559 will make it into Ethereum 1.0.
This is especially true in view of the time and money required for the implementation, only so that Ethereum 2.0 ultimately nullifies the effort.
Still as “short-term usability relief” Buterine is determined to incorporate the EIP 1559 upgrade.
“Let’s work hard and get this important economic upgrade to Ethereum soon.“
What is Ethereum Enhancement Proposal 1559?
Under Ethereum’s current transaction fee system, an auction mechanism determines the price of gas paid by users. Users send bids to execute transactions and miners choose which transactions to execute.
However, this facility suffers from several inefficiencies, with the imbalance of power over miners being the most problematic. When miners choose the highest paying transactions, the net result is an unusable and expensive network.
EIP 1559 brings several changes to the transaction fee system. The gas fees consist of the basic fee plus a small “miner’s bribe”.
Instead of an auction mechanism, the base fee is postponed based on network activity, adding better predictability of fees to the mix.
“If the network exceeds the target gas consumption per block, the basic fee increases slightly and if the capacity is below the target, it decreases slightly.”
Under this proposal, the miner keeps the bribe and the mechanism burns the base fee, adding a deflationary aspect to the network.
According to Buterin’s roadmap, developers have completed about 75% of the preparatory work for EIP 1559. Additionally, existing Ethereum users are demanding a solution to high gas charges.
But is it worth implementing Ethereum 1.0 when Ethereum 1.0 is in the unwinding phase?
The fact that Buterin is pushing for EIP 1559 could indicate his lack of confidence in the timely completion of Ethereum 2.0.
Few can grasp the scope and complexity of Ethereum 2.0 completion. With that it is almost certain that the road to completion will be long and tedious.
Source: ETHUSDT on TradingView.com