Ethereum Hard Fork will be implemented regardless of opposition

Takeaways

In the world of open-source software, a hard fork refers to a split that occurs in the code. This leads the project into a new direction.
The EIP-1559 will result in a substantial reduction of fees for miners. Users have insisted that Ethereum gas fees are too high and need to be reduced.

Today is the day that EIP-1559, a form of ‘rent control’ on gas fees that comes at the expense of miners, is set to be implemented via the Ethereum blockchain’s London hard fork. The proposed change is still met with considerable resistance.

What exactly is a “hard fork”?

In the world of open-source software, a hard fork refers to a split that occurs in the code. This leads the project into a new direction.

A hard fork is a divergence in the path of a blockchain. It occurs when a group (or collective) of nodes rejects processing new transactions.

EIP-1559 is a reduction in their fees. Users have insisted that Ethereum gas fees are too high and need to be reduced. The London hard fork has left miners in an impossible situation. The miners could choose to reject the hard fork, but then they would be forced to mine on an isolated blockchain.

The transition from ETH2 to proof-of stake, where the miners’ role as validators of transactions is removed, will be completed by 2022. Miners will only win a small victory if they choose to battle EIP-1559.

History of the Hard Fork

Hard forks have happened on Ethereum before. Hackers stole $60,000,000 of Ethereum in 2016, just a few months after Ethereum’s launch.

As a response, Ethereum proposed a “hard fork” of the blockchain which would return the system to its original state prior to attack.

This was ultimately approved but there were some controversies. People opposed to the rollback claimed that a Blockchain wasn’t actually censorship-resistant, or even immutable, if it could simply be cancelled. Ethereum Classic came about as a result of the collective support that grew around the Ethereum original blockchain.

Bitcoin’s blockchain has also gone through several hard forks, all centered around the debate over what size block should be on the blockchain. Each block would process transactions faster if it was bigger. Due to this, two versions of Bitcoin are active: Bitcoin SV (Secure) and Bitcoin Cash.

Who is opposed to EIP-1559

StopEIP1559.org states that 12 mining pools with a collective hashing strength of around 60% have publicly expressed their opposition against the EIP Protocol.

“Ethereum developers initially needed miners for their coin but once successful, they’ve thrown them under the bus. They cared about miners when Ethereum lacked mining support, and once they received it, they started to mistreat them,” In an open-letter, the group expressed its views. “Miners are no longer vital to the Ethereum developers or big mining pools because they’ve made their money, and now miners are an embarrassment. The developers and big mining pools had forgotten where they came from and supported them when they started out.”

Even though there is vocal opposition to EIP-1559, this does not necessarily mean miners will refuse it. The hard fork is more popular among users because of its promise of more stable gas charges.

A count of the number of clients — the software used to interact with the chain — connected to the Ethereum blockchain shows that around 67% of clients have done the necessary prep work to be ready to upgrade to the London hard fork when the time comes.

It will take time to see if the miners are willing to accept London’s hard fork, or if they will try and obstruct its implementation. It’s impossible to predict if they will obstruct the hard fork, but client data suggests that users may join this new version of Ethereum.

What’s the deal with ETH2?

Mining is going to change, for better or worse. The transition from ETH2 to ETH3 will soon bring an end to the days of the proof-of stake miners.

Proof-of stake involves large token holders validating transactions. In the case of proof-of work, it is miners who take this responsibility.

With ETH2, mining and transaction validation will be segregated. Although the Ethereum blockchain still needs miners, transaction validation will be handled by large token holders. This shift will eliminate a key revenue source for miners — but also lessen the energy required overall which downplays the argument that Ethereum is an earth-melting energy hog because of its reliance on miners to run the network.

Ether’s current trading price is $2,600 according to CoinGecko. That represents a 7-percent increase from yesterday.

Today, between 17:00 and 13.00 UTC the London hard fork will be introduced. Blockworks will keep you updated on the progress of this project.

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