EIP-1559 (Ethereum Gas Fee Model)
Let’s learn more about the EIP-1559 standard
The ASSEMBLE Protocol is a blockchain-based global point integration platform that exploits ASM utility tokens, whilst establishing a business ecosystem that can integrate, utilize existing points and miles with point providers, consumers and retailers.
Welcome back, readers! Today, we’re going to learn more about another transaction fee model introduced in the Ethereum — EIP1559. Long story short, EIP-1559 is the upcoming upgrade to the existing structure of the smart contract development platform. So-called London EIP-1559 modifies the auction process for the charge calculation structure and burns a portion of the transaction fees. The upgrade will cause asset deflation over time, which will increase once mining ends, and proof-of-stake becomes the dominant consensus method later next year.
What is EIP-1559?
EIP-1559 is a significant improvement in the way users trade on Ethereum Mainnet. When a block is found, the ETH miner fills the block with “Top N” transactions and pays the amount of GWEI/Gas (ETH) he bid for each transaction.
The goal of EIP 1559
- Troubleshooting fee volatility: Solving the problem of soaring fees when transactions are crowded in the Ethereum network
- Troubleshooting unnecessary transaction delays: the dilemma of transaction approval
Current Ethereum Gas Fee Scheme
Under the current protocol, ETH users must bid for gas charges to pass through the fastest block of transactions. Therefore, the higher the bid, the higher the likelihood of a faster deal. This system is particularly problematic when the network is congested.
EIP-1559 System
EIP-1559 implements fixed fees for all transactions that depend on the level of activity or congestion the network handles at a given time. This adds the base_fee field to the block information in EIP-1559 depending on the congestion levelю Based on the base_fee field of the previous block and the amount of gas used (gas_used), the default fee for the current block will be determined. This can improve UX because users do not need to estimate gas charges. The EIP-1559 system sets BASE FEE according to network utilization. Everyone will pay the same fee for the given period.
