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EIP-1559 and the Ethereum London hard fork were obviously contentious, and a lot of drama ensued for all parties involved. However, very few cared. At this point, the Ethereum developers pushed it through. However, there are concerns about Ethereum mining profitability post-fork.
Ethereum is GPU mineable and ASIC mineable, making it the only major cryptocurrency ever to have mining profitability with graphics cards and custom mining rigs called ASIC miners. Ethereum mining profitability has been significantly reduced, and ETH gas fees aren’t even cheaper anymore.
Anyone who has been down the rabbit hole with Ethereum will know what it feels like.
The reality is that even though EIP-1559 will significantly reduce the gas costs, they won’t be free. Thus, gas fee-friendly payment protocols believe they will have a use case and that there will be a continued demand to optimize.
The expectation is that the fees will not reduce; perhaps it might stabilize. The thing is that a part of the fees which will go to the miners will now be burnt. Thus, this is not a good news for miners. However, for holders, this is a piece of good news as the supply will be reduced, adding to the scarcity element.
After EIP-1559, users will be paying a base fee that will be determined algorithmically by the network based on how busy it is as opposed to having to submit bids. Those who are transacting will have to pay the miners a tip to have their transactions processed sooner. The good thing about this is that the network fee will be predictable, and it will not change from one minute to the next. When the fee is very high, users can now wait until it is less.
Artificial congestion of the network to keep the fees high will not happen. Instead, burning according to holders will contribute to an increase in Ethereum price. However, there is no certainty as to what will contribute to the price increase.
Transaction fees might not be cheaper, but they will be less and more predictable than before. As a result, users might not overpay like in the highest payer wins method.
The changes that will come with Ethereum 2.0 are more than what is happening with EIP-1559. With PoW, miners use a lot of computing power to verify transactions, but with PoS, they will not use it to confirm transactions to earn their coins. Work is in progress by developers looking to scale up Ethereum network developers are working to scale up the Ethereum network by adding more side networks and further linking them.
