Key Takeaways
- Ethereum co-founder expresses delight in the successful network update
- Record number of ETH burned after the update
- Update set to improve the Ethereum network
Vitalik revealed this in an interview with Bloomberg stating that the EIP-1559 update was the most critical part of the London update. The former is part of the new measure that will reduce transaction fees on the Ethereum network.
Ethereum has been plagued with high transaction fees and scalability problems which it sought to resolve by migrating to Ethereum 2.0. However, there have been delays and postponed updates in recent months, which is why the successful launch of the London update has been celebrated.
Buterin further added that the launch gives the entire Ethereum team confidence that significant changes can be made to the Ethereum network. The London update introduces base fees to the Ethereum network for all transactions.
This mechanism also means that a portion of the fees can be burnt during network congestion, providing a deflationary model. However, since the deployment of the update, there has been a noticeable rise in the amount of ETH burned on the Ethereum chain.
As expected, most of the burns are from NFT and DeFi protocols since they consume high gas fees. It is understood that the current burn rate will go back to normal in the coming days, and the update appears to have been accepted by everyone with minimal fuss. The price of Ethereum experienced a brief spike in value but is currently below $3,000.
Do you think Ethereum high transaction fees will be resolved with the update?
