Ethereum Successfully Launched Berlin Hard Fork
On April 15, at 11:07 GMT, the long-awaited hard fork of Ethereum – Berlin – took place. Immediately before that, the value of ETH broke the historical mark of $2,480, and the trading volume in 24 hours exceeded $36.2 billion.
The update included four proposals for improving the existing network. The first was EIP-2565 (lower gas cost for modular exponentiation) and EIP-2929 (higher gas cost to process transactions faster and reduce the likelihood of a denial-of-service attack). The last proposal was made by Ethereum founder Vitalik Buterin and Ethereum Foundation employee Martin Svende.
Also, the hard fork includes some technical details that were expected in the community.
Many key ETH supporters have noted the network update on their Twitter accounts. Besides, the ETHStaker and Ethereum Cat Herders communities organized watch parties for the hard fork presentation.
EIP-1559 is on the way
The Berlin hard fork deployment brings the ETH 2.0 network closer to another hard fork – London. It will include the highly awaited EIP-1559 proposal. It proposes to change the scheme for calculating commissions. So, part of the reward for miners will be “burned.” Because of this, the income, according to analysts, may be halved. Therefore, some large mining pools oppose this update. They give two arguments: a decrease in miners’ earnings and a decrease in network security. By the way, in March this year, the “miners” earned almost $1.4 billion.
However, most Ethereum network members support EIP, as the proposal could boost the ETH exchange rate. According to Vitalik Buterin, the new mechanism for “burning” a part of the commission will reduce the supply. Therefore, we can expect a bullish trend in the price of Ether.
The London hard fork will be followed by a phase of merging the original network with Serenity. So, the Beacon Chain will be attached to Ethereum 1.0, and the blockchain will finally switch to the Proof-of-Stake algorithm. According to Ethereum Foundation researcher Justin Drake, he previously surveyed this matter. Vitalik Buterin and other essential community members responded that the final merger could very well take place in 2021.
According to the Serenity roadmap, 64 shard chains will be launched. It’s what will mark the transition to Ethereum 2.0.
Overall, it is worth noting that the Ethereum network is going through an eventful year for itself. Thus, many critical L2 features were implemented. It will affect the price of the ETH asset. Now the asset’s market capitalization exceeds $275 billion, and the coin itself is trading in the range of $2,378 – $2,547.
Previously, the launch of the Berlin hard fork was postponed several times. It was due to the discovery of vulnerabilities in the code, so the project was repeatedly sent for revision. The hard fork’s technical specifications were presented only in January 2021, and the final activation date was announced in March.