Unchained Ethereum's EIP-1559 Will Solve Some Problems But Big Ones Will Remain - Ep.250
Jun 29, 2021
In this engaging conversation, Taylor Monahan, CEO of MyCrypto and expert in blockchain technology, teams up with Tim Beiko, Ethereum Foundation core-dev facilitator, to discuss the transformative Ethereum upgrade, EIP-1559. They dive into why EIP-1559 is vital, its impact on transaction fees, and the future of miner extractable value. Taylor expresses caution about the upgrade's implications for wallet providers, while Tim tackles the controversial relationship between EIP-1559 and Ethereum's sound money narrative, highlighting potential deflationary effects.
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EIP-1559 Overview
- EIP-1559 introduces variable block sizes for better fee management.
- It aims to reduce overbidding by implementing a base fee.
Fee Estimation Problem
- Users struggle to estimate transaction fees because wallets lack priority information.
- EIP-1559 tries to solve this by incorporating priority into the fee calculation.
EIP-1559 Benefits
- EIP-1559 introduces a maximum fee and refunds the difference to the user.
- This ensures only ETH is used for transaction fees, strengthening its role.