Speaking of bifurcation, many people are looking forward to it. Is ETH going to have ETCplus? Or simply hoard you on the Ethernet chain. There may be one in each chain after bifurcation, so it will not be doubled directly.
Coin man's brain capacity is really amazing, but it seems not impossible for ETCplus to be born by ETH, because the contradiction caused by London fork EIP 1559 is getting worse and worse, and there are many differences and stalemate within the community. However, Ethereum is expected to reach the height of 12965000 on August 5th, but the opposition has not made any big moves, and the probability of flying out of the Black Swan seems slim?
At the same time, the author thinks that the proposal of 1559 is a stress test for ETH to move from POW to POS consensus, and it will also be an important cornerstone for Ethereum to become an "encryption brother". So, what exactly are forking and EIP 1559, and what impact will this have on the prices of Ethernet and ETH? This article will simply start with this London fork.
Hard bifurcation and soft bifurcation
Nearly three years have passed since the bitcoin cheating incident, and the energy of the mainstream currency circle has also focused more on the ecological application level. The glory of hard bifurcation and soft bifurcation has been lost to the past. But as two concepts that have been popular in the circle, what are hard bifurcation and soft bifurcation? There is the most abstract and simple explanation: hard bifurcation means that the old and new versions of the software are no longer compatible, they start to keep accounts, establish their own ecology, and the old and new factions part ways and establish two different blockchains; Soft bifurcation is mild. The new version establishes stricter rules on the basis of the old version, but the old version is still compatible with it, and the two can still coexist in a chain without opposition.
Of course, you can also take a concrete example: bifurcation is like the change of environment, and software facilities are like people's clothes. Then the soft fork means that the temperature rises, and people can continue to wear the original cotton-padded clothes. Just scoop out the cotton inside, and the new clothes can't be exchanged for the original cotton-padded clothes. Hard bifurcation means that the land has become an ocean, and people's cotton-padded clothes are no longer available, so they need to be replaced by polyester swimsuits.
If you have to consider from the general public, the general soft fork only upgrades the iteration function, while the hard fork needs to switch to another main network chain, which also means that you can map to the same amount of new coins, such as ETC, BCH and BSV.
ETC was the first hard fork project of ETH, which almost brought a fatal blow to Tai Fang at that time. 2065438+June 2006, the crowdfunding platform based on the smart contract of Ethereum was robbed of ETH worth 50 million dollars by hackers. At that time, the community voted to make a hard fork at 1 920,000 and roll back all transactions. The opposition believes that this practice violates the spirit of decentralization and tampering of blockchain, so that some miners still insist on mining on the original chain, forming an etheric classic chain that does not accept rollback.
London bifurcation and EIP 1559
London Bifurcation is another upgrade of Ethereum after Berlin Bifurcation and Istanbul Bifurcation, in which Berlin Bifurcation has been running smoothly, because it mainly optimizes the performance of Ethereum's main network and has little impact on the interests of all parties. London Bifurcation directly leads to gangs among miners, because EIP 1559 may directly lead to miners having no mines to dig.
1559' s suggestion is mainly to optimize and stabilize the fluctuation of gas, prevent Ethereum traders from "involution" blindly, and set a reference base fee for each transaction according to the network and block conditions. Before EIP 1559, in most cases, users can only choose three kinds of gas charges: slow, medium and fast. At the same time, in order to improve the speed, many users began to blindly increase the price, which directly led to the gas fee being equivalent to an auction without any reference, and the participants were mindless in price increase activities.
If we just set a fixed fee, the community reaction may not be so fierce. EIP 1559 also stipulates that the ETH received from this basic fee will be directly destroyed. This means that if the trader does not tip beyond the basic fee, the miner will not get any income, especially when the transaction is quiet.
Most of the supporters of 1559 are participants at the ecological level, because the proposal can optimize the user experience and reduce blind payment and cost manipulation. At the same time, a large part of the handling fee has been destroyed, which has also dynamically adjusted the inflation model, or will be beneficial to the long-term development of the network.
The opponents of 1559 should be miners, because they are directly facing the problem of reduced income. In addition to the income problem, the tipping mode of 1559 can also have a vicious "involution", that is, users can't significantly reduce their fees, but it is equivalent to the main network collecting taxes from miners.
At present, many people think that it is unlikely to fork the new currency, because both V God and the ecological station team are on the side of 1559, but the opposition represented by Flexpool and Spark Pool has reached 60%, and it is enough to build a new Ethernet chain without EIP 1559. Then, what is the significance of 1559, a proposal that seriously harms the short-term interests of miners? Perhaps this is closely related to the upcoming ETH2.0 and POS.
London fork helps POS
According to the relevant news of the ETH development community, ETH2.0 has finalized the relevant specifications for the complete transition to PoS, which is considered as a solution to the energy consumption problem of blockchain, because this will directly lead to the energy consumption of Ethereum being one ten thousandth of the original.
London Bifurcation and EIP 1559 seem to be important stress tests for POW to POS transition. Through this stress test, important ecology and communities are guided to gradually reform to POS, and at the same time, the original POW is gradually retired through market behavior, which clears certain obstacles for the real arrival and landing of ETH2.0 and POS.
In view of this irreconcilable contradiction, the market was expressed through the trend of ETC in early May. This is because once Ethereum reached the POS era, the miners thought that digging ETC with their own graphics cards could make more profits, so the market took the lead in responding, and there was such a huge surge that ordinary people could not understand.
Aside from the contradictions in the community, POS algorithm will inevitably have a far-reaching impact on the currency price. Because POW first requires miners to make a large amount of upfront investment, and these investments will be compressed over time, so that they have to be reinvested continuously. In this way, most miners have to act as sellers and sell the coins in their hands, so that the coins finally dug up are distributed to the secondary market instead of accumulating in the miners' balance sheets.
POW miners have to sell coins to maintain their business, while POS is completely different, because once miners put a certain amount of coins into the pledge system, in the relatively unchanged ETH system, miners have a relatively permanent right to income, and the newly generated ETH can also be directly put into the mine pool without being allocated to the secondary market.
Therefore, in the POS system, miners are assigned a piece of cake, and it is their common interest to make this cake a big meeting. In other words, pledging, selling and enjoying high dividends will be the three standard actions of POS miners in the future.
The "encryption brother" of Ethereum is just around the corner.
From the proposal of 1559 to POS, the market unanimously recognizes the importance of reducing fees and speeding up. The current blocking ability and speed directly restrain the rise of currency prices. This is because when the price of ETH currency rises, the handling fee also rises, which makes the traders miserable. On the other hand, it also inhibits ecological construction, leading to a large number of ecological spillovers, which in turn inhibits the demand for ETH and suppresses its price.
It seems that the price of ETH has formed a dynamic equilibrium in a perfectly competitive market. As long as the price rises, it will curb demand and then lower the price. The important measure to break this pattern is to reduce fees and speed up, so EIP 1559 and a series of subsequent reform programs shoulder this mission.
In addition, the POS consensus enables miners to form a community of interests. They no longer rely on chips and other hardware to compete with each other, but determine their share through pledge. In order to increase their computing power, they can only buy coins from the market continuously. When a certain pattern is formed, raising the price of ETH will be their same move, which is the big cake mentioned above.
It is not difficult to imagine that when POS and ETH2.0 are fully implemented, bitcoin with slow speed and high price will immediately be at the disadvantage of cryptocurrency, and even gradually lag behind other projects using POS consensus mechanism.
With excellent technology and vigorous ecology, Ethereum is bound to become the "first brother" in the field of encryption, regardless of market value or consensus. And this, let us wait and see.