Bankless

58 - EIP-1559 | Hasu

Mar 29, 2021
Hasu, a renowned pseudonymous researcher in cryptoeconomics, shares his insights on the transformative Ethereum Improvement Proposal, EIP-1559. He discusses how this proposal changes fee dynamics and enhances user experience within the Ethereum network. The conversation dives into Ether's emergence as a sound money and its implications for decentralized finance. Hasu also examines the balance between economic security and miner incentives, shedding light on Ethereum's evolving monetary policy and its unique place in the cryptocurrency landscape.
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INSIGHT

EIP-1559 Mechanism

  • EIP-1559 improves Ethereum's transaction fee market.
  • It shifts from fixed gas quantity and floating price to fixed price and floating quantity.
INSIGHT

Crypto's Defining Feature

  • Economic incentives are key to differentiating crypto from traditional systems.
  • They enable permissionless validators to reach consensus.
INSIGHT

Resource Regulation

  • Blockchains must regulate resource consumption to prevent centralization.
  • Unregulated social costs lead to scenarios where only a few can validate.
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