A Significant Ethereum Improvement Proposal Has Just Been Created
Market Musings

A Significant Ethereum Improvement Proposal Has Just Been Created

By Connor Sephton
2mo ago
1m

EIP-3675 could fire the starting pistol on the next stage of the shift to ETH 2.0.

A Significant Ethereum Improvement Proposal Has Just Been Created

Table of Contents

A new Ethereum Improvement Proposal has been created to officially upgrade the blockchain’s consensus mechanism to Proof-of-Stake.

EIP-3675 could fire the starting pistol on the next stage of the shift to ETH 2.0.

It would result in miners on its current Proof-of-Work algorithm being phased out — and instead, validating transactions and creating blocks would fall to validators who have staked Ether.

There are hopes that this new approach would be far less energy intensive, all while increasing the overall capacity of the Ethereum network.

Although the arrival of this EIP is promising, one Ethereum Foundation developer told Decrypt that it’s unlikely ETH 2.0 will happen this year.

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The Countdown is On 

A more pressing concern surrounds the London hard fork, which introduces a series of EIPs that will help make ETH deflationary.

Miners will no longer receive income from transaction fees — instead, it’ll go straight to the network in order to be burned. This could result in the circulating supply of Ether beginning to dwindle over time, potentially giving ETH’s value a boost.

It’s due to go live in early August. As we’ve previously discussed here on CoinMarketCap Alexandria, it isn’t without controversy either.