Ethereum’s EIP-1559 Upgrade Now Deployed on All Testnets

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Ethereum's EIP-1559 Upgrade Now Deployed on All Testnets
Ethereum's EIP-1559 Upgrade Now Deployed on All Testnets

According to the leading developer Tim Beiko, the London hard fork of Ethereum has gone live on the Rinkeby testnet.

Ethereum Hard Fork to Go Live on the mainnet on August 4th.

This means that the much-anticipated upgrade will now be deployed on all three testnets.

Ropsten and Görli were upgraded to “London” on June 24th and June 30th, respectively.

According to Fxcryptonews, the hard fork is expected to go live on the mainnet on August 4th.

He pointed out that the Kovan network will not be updated until the mainnet goes live.

EIP 1559: One of the Most Controversial Upgrade

Ethereum’s London hard fork – including the Ethereum Improvement Proposal (EIP) 1559 – is considered one of the most important upgrades in the history of the project, as well as one of the most controversial upgrades.

With the introduction of the so-called “basic fee” instead of the previous “first-price auction fee”, the network’s fee model will change significantly.

At the same time, the cost-burning mechanism associated with EIP-1559 will make ether a deflationary asset. Ethereum founder Vitalik Buterin recently joked that a reduction in supply could turn ETH into an “ultrasound currency”.

The upgrade was strongly opposed by the miners as it would greatly reduce their income.

Other critics also pointed out that although deflationary pressures are currently seen as the main bull market case for the second-largest cryptocurrency, the overall supply of ethers will remain malleable and unpredictable.

Ether Outperforms Bitcoin

Ethereum has been by far outperforming Bitcoin in 2021, and there are no signs that this trend could change with the hyped London hard fork.

The ETH/BTC currency pair has risen by more than 20% in the past two weeks.

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ETH/BTC Chart. Source: TradingView.com

In a report on Tuesday, banking giant Goldman Sachs stated that ether could replace Bitcoin as a store of value.