Many miners actually don’t know the meaning of “Berlin Fork” and “London Fork”. Some people also came to ask the teachers in the community, is Ethereum going to be forked, what are the tokens, and are they worth buying?

This is really dumbfounding. "Berlin Fork" and "London Fork" are actually an upgrade of Ethereum. This is the latest upgrade after the upgrade of Ethereum Istanbul and Muir Glacier. The name is very literary and not professional. People in the media don’t need to remember these, as long as they know that this is an upgrade of Ethereum.

The "Berlin Fork" is planned to go live at block height 12 244 000 of the Ethereum mainnet. It is expected to go live on April 14, 2021. Before that, it will be tested on the three major test networks of Ropsten, Goerli and Rinkeby.

This time the fork did not cause much disturbance, mainly to optimize the performance of the main network of Ethereum, which has little impact on the interests of all parties. The upgrade includes four EIP proposals, namely:

EIP-2565, reduced the cost of ModExp precompiled contracts;

EIP-2929, increased certain gas fee costs;

EIP-2718, which introduces a new transaction type;

EIP-2930, includes a transaction type with an optional access list.

The introduction of these solutions is to optimize the overall performance of Ethereum. To some extent, a little gas fee will be added, but this is a small amount and can not be included in the discussion. Now everyone is paying more attention to the "London Fork" to be carried out in July. The EIP-1559 plan will be added here. The opposition represented by Xinghuo accounted for more than 60% of the computing power. It can be seen that if this plan is implemented, it will be very painful for miners.

I have also written such an article before. At that time, the industry generally believed that the EIP-1559 scheme would reduce the amount of coins produced by about 30%, but after some data analysis, it may not drop that much.

In our existing Ethereum network transactions, we use the bidding mode. The miners will sort according to the gas fee and choose the package with the highest profit. When the network is congested, the gas fee will become very high, and the introduction of EIP-1559 , equal to dividing the GAS fee into two parts: basic fee + tip. The basic fee is the benchmark threshold of the transaction. This part of the fee will not be handed over to the miners, but will be directly destroyed. The tip part is similar to the current auction mode, and whoever gives the highest tip will be packaged first.

Then let’s take a look at the actual situation. The base fee accounts for a relatively low proportion of the gas fee. When the transaction is not congested, users can enjoy the low gas fee to complete the transaction. In this case, the miners basically cannot get it. Tips, it can only be maintained by the block rewards of each block, but the current situation of the Ethereum network is that it is in a state of congestion for 24 hours.

I originally thought that morning and evening peak traffic restrictions could ease traffic, but the current situation is that there is only one channel in Ethereum, and the peak traffic is 24 hours a day, so the right to choose will still be in the hands of miners, and users will still have to pay relatively high gas fees to obtain packaging rights. Therefore, the EIP-1559 solution cannot solve the congestion problem to a large extent, and it is even difficult to alleviate it. In the end, EIP-1559 is just an operation that is "not harmful but extremely insulting". After all, the congestion of Ethereum is no longer It can be solved by restricting the flow.

The road must be built wider, and other routes for diversion must be planned, so as to truly solve the congestion problem and reduce the gas fee. Therefore, the EIP-1559 scheme mentioned earlier will have a 30% impact on the amount of coins produced. I think it is exaggerated. 10% is almost the same. The greater threat than the EIP-1559 scheme may still come from the increase in computing power. question.

The recent increase in the computing power of the entire network is indeed very rapid, which will undoubtedly dilute the single M-produced coins, and also make miners start to worry about whether the sharp sword hanging over everyone's heads, the V God algorithm, will really come down? The update route of Ethereum is now very clear. I think the EIP-1559 plan is more important than burning the base fee to create conditions for Ethereum to enter the era of deflation. Although Ethereum has been working hard on the number limit, a district 18 years ago The block reward is 5 Ethereum, later changed to 3, and now there are only 2, but as time goes by, Ethereum must still be in the mode of inflation, the emergence of the EIP-1559 scheme, let People saw the hope of deflation.

The short-term solution to the congestion problem is Rollup. Whether it is OP-Rollup or ZK-Rollup, it can solve the congestion problem of Ethereum in the short term. This is the real way to reduce the gas fee. As long as the congestion problem improves, the gas fee will decrease. It must be lowered. Many miners may have to worry about whether my income will decrease again, and I will simply calculate the economic accounts with everyone.

Take the question just mentioned, 18 years ago, the reward of 5 coins per block, now 2 coins per block, why the current miners are more crazy, it is because the current price of the currency has not only increased by 2.5 times, but also That is, you are willing to dig 5 ETH worth 500 US dollars, or you are willing to dig 2 ETH worth 5,000 US dollars.

With the completion of various benefits of Ethereum, this round of bull market is very likely to reach 3,000 US dollars, and the sacrifice in currency production can be fully compensated in the appreciation of currency prices.

Another good thing for miners is that the Rollup solution can solve the problem of Ethereum in 5-10 years. This solution can make Ethereum no longer worry about congestion in 5-10 years, so V God will have more It is time to polish ETH2.0. Under such circumstances, the previously mentioned 2-3 years will change from POW to POS, thus ending the era of Ethereum miners mining. Now it seems that this time is likely to be extended.

Then miners can think about it. The current situation is that the amount of coins produced may decrease, but the mining time will be extended and the price of coins will rise. In your mind, considering these factors, do you think mining is a problem now? Good business?

Author: V Ke Baiyuan, principal of [Blockchain Thinking]

Author: V Ke Baiyuan, principal of [Blockchain Thinking]