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Ethereum Gains Momentum Ahead of London Hard-Fork

The two major upgrades by the London Hard Fork relate to changes to the network’s transaction fee model and changes to the difficulty bomb.

EIP-1559: Changing the charging model is the most important element. It includes a new deflationary mechanism that burns the base fee, resulting in greater scarcity and increasing the long-term viability of the Ethereum network.

Currently, users make a bid to pay their gas fees. This gives miners an incentive to prioritize transactions based on the additional fee. Under EIP-1559, each block will instead have a fixed associated fee, providing a more predictable and fair mining mechanism.

With an eye on ETH 2.0 and moving from proof-of-work to proof-of-stake, EIP-3228 will implement a difficulty bomb. This means that over time, it becomes more and more difficult to mine blocks, gradually making the process more unprofitable.

There will come a time, estimated in Q2 2022, when mining will become so unprofitable that miners will have no choice but to take their equipment offline.

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