Zapper announced last Tuesday, August 3, through his Twitter account, that EIP1559 will be launched this week. According to the company, this update will facilitate the purchase of expensive JPEG files for supercoders “in the shadow of the world”.
“A major change in the structure of Ethereum transactions is expected this week with the launch of the Ethereum Enhancement Proposal (EIP) 1559. This article looks at how transactions work before and after EIP 1559 and provides insight overview of new features. that will be included in the protocol”, he said through an article published on your website.
Decompose an EIP 1559 Transaction
The company explained that under EIP 1559, a transaction requires three pieces of information: a base fee amount, a priority fee amount, and a maximum fee amount.
• Base rate: it is the minimum amount of gas necessary to include the transaction in a block. This amount is set by the protocol and is automatically adjusted for each new block based on traffic. The entire base fee amount is burned on each transaction (more on this later).
• Priority fee: also known as “tip”, it is the amount that the user is willing to give to the miner for processing the transaction. The user sets this amount with each transaction and the miner is paid. Many experts expect the default tip cost to be 2 gwei.
• Maximum fee: it is the highest amount that the user is willing to pay for the transaction. The user sets this amount with each transaction.
In his opinion, when the transactions are sent, the protocol will ensure that the maximum rate set by the user is higher than the base rate plus the priority rate. If so, the transaction will go through. Any leftover amount will remain in the user’s wallet.
New Features Under EIP 1559
According to the company, in addition to changing the structure of transactions, EIP 1559 introduces two new features: flexible block size and base quota burning.
In his view, by introducing a flexible block size, Ethereum will be better equipped to handle massive increases in demand. Before EIP 1559, all blocks were capped at 15 million gas, meaning that gas prices would rise significantly and unpredictably as users tried to compete with each other for inclusion in full blocks.
“After EIP 1559, blocks will be able to increase in size to accommodate sudden increases in demand. Importantly, Ethereum has set a target size for blocks under EIP 1559, and the base fee amount is tied to the block size. The base fee amount will increase if the blocks are larger than the target size and will decrease if the blocks are smaller than the target. This new feature will result in a smoother and more predictable rise in gasoline prices during surges in demand”, he added.
Similarly, he indicated that as a second important feature of EIP 1559 is that miners will now “burn” the base fee on each transaction. This means that the full value of the base fee sent with each transaction will be destroyed or withdrawn from circulation.
“This accomplishes two things: it ensures that miners are not motivated to manipulate the price of the base rate, as they are not being paid. Second, it makes ETH an essential component of the Ethereum protocol. Previously, there were ways to pay miners with other cryptocurrencies or fiat currencies outside of protocol to bribe them and prioritize certain transactions. Now, users must own and use ETH to send transactions through the protocol”, he said.