This article addresses the most common issues of EIB-1559.

Ethereum is one of the revolutionary platforms that completely changed conventional usage patterns block chain. It has introduced the concept of an improvement proposal from the EIB or Ethereum to allow for the addition of new features and processes. Recently, a discussion EIB 1559 has received in – depth attention as it is ready to become part of Ethereum ‘s London hard branch in July 2021.

EIB 1559 presentation guides could provide promising insights into the need for the EIB and basic information about EIB 1559. EIB-1559 Frequently Asked Questions are the main tool for a comprehensive understanding of the new EIB specification. The following discussion covers some important frequently asked questions about EIB 1559.

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Frequently asked questions about EIB 1559

The definition and operation of EIB 1559 provide a sufficient picture of its activities for the evolving landscape of Ethereum. On the other hand, it makes sense to face many doubts from the perspective of users, sign holders, and miners. Let’s look at the top frequently asked questions to EIB-1559 as follows.

1. What is EIB-1559?

One of the first and most obvious entries among them EIB 1559 questions draws attention to its definition. It is, in fact, a proposal for a radical change in Ethereum’s premium market, where there are some key changes. First, the EIB-1559 will introduce the current gas limit. Now, EIB-1559 presents two different values, such as a long-term average target and a hard cap per block.

The long-term average target is similar to the current gas limit, while the hard block-specific cap is twice the current gas limit. Definition EIB-1559 Frequently Asked Questions also draws attention to the basic premium. Transactions have to pay a basic premium and are incinerated by block adjustment to ensure a value that allows the average block gas usage to be maintained at a level similar to the current gas limit.

For more information on EIB-1559 here

2. What are the benefits of EIB-1559?

The importance of EIB-1559 will benefit from the discussions frequently asked questions to EIB-1559 is indisputable. There are many fruitful reasons for EIB-1559 to take into account its value to the landscape of Ethereum in general. The first benefit of EIB-1559 is the better overall experience of using Ethereum through the new transaction payment mechanism. As a result, Ethereum’s acceptance may increase by a margin.

The EIB-1559 basic levy burning process ensures part of the income generated by miners. Therefore, the new EIB version presents sufficient promises for change Ether productive assets. Benefits of EIB-1559 in EIB 1559 questions also focus on lowering ether inflation. Later, ETH could become more attractive than an asset stock and grow its target market.

Also read: 4 general myths about Ethereum’s EIB 1559 update

3. Can the EIB-1559 reduce the price of gas?

It is also important to consider the impact of EIB-1559 on gas prices in the Ethereum network in the EU EIB-1559 Frequently Asked Questions. Although many assumptions paint the EIB-1559 as a favorable measure to lower gas prices, the primary purpose of the Ethereum improvement proposal is completely different. Better predictability of the base fee with the EIB-1559 may lead to lower gas prices.

However, the reduction depends on the assumption of predictability, which is less due to cases where users make unreasonably large payments for gas. In the case of EIB-1559, the basic fee will increase or decrease by 12.5% ​​after the blocks reach more than 50% capacity.

4. Does it make sense to use a different price as an alternative?

Many people have drawn attention to the possibilities of using second price or kth price auctions to address the inefficiency of first price auction systems. Kth price auctions mean that everyone has to pay a gas price that is similar to the lowest gas price included in the block. The effectiveness of these types of auctions is clear from the perspective of traditional economic analysis.

However, frequently asked questions to EIB-1559 also focus on setbacks in kth price auctions. The K-price auction system is vulnerable to collusion, which means unlikely opportunities to use it to replace the auction method in force at Ethereum.

5. What is the impact of EIB-1559 on user experience in setting transaction fees?

The key assumption of EIB-1559 focuses on tailoring fees to prevent demand and improve transparency for users. Some wallets like Metamask, could provide better estimates without having to depend on external price forecasting mechanisms. Roolin protocol in the management of the base fee, contributes significantly to the user experience while setting transaction fees.

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6. What about user experience in network congestion?

Network congestion concerns are also an important topic of the year EIB 1559 questions. During peak network congestion, the basic charge will change by 12.5% ​​in the extent of demand, exceeding the ideal gas limit per block until demand declines. Users could get a better idea of ​​the amount of the base fee for network congestion. Therefore, users could choose to pay a higher price during major network congestion. On the other hand, users can also opt for a lower transaction fee and expect a decrease in network demand.

7. Can the tips lead to a bidding war?

EIB-1559 Frequently Asked Questions the labels also point to concerns about the tips. Wallets could simplify the selection of tips by observing tips previously approved in the chain. Wallets can add a tip to an event they submit that is not approved quickly. In the case of a larger network congestion, hints can lead to bidding wars by detecting congestion. Wallets could then provide users with options to prioritize their events.

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Last words

frequently asked questions to EIB-1559 can provide insights that go beyond the basics of Ethereum’s proposal for improvement. The specification provides new opportunities to change the current mechanism for determining transaction fees Ethereum. A detailed solution to the frequently asked questions about the EIB-1559 can clarify any doubts you may encounter when understanding the EIB-1559.

Most importantly, the Frequently Asked Questions provide an opportunity to understand the unique functions and answers of the Ethereum network in specific situations. If you want to learn more about EIB-1559 and other related concepts, it makes sense to dive into the answers in more detail to get more FAQs now!

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* Disclaimer: This article should not be construed as such and is not intended to provide investment advice. The claims presented in this article are not investment advice and should not be taken as such. Do your own research!

About the author

Diego Geroni

An evangelist of blockchain technology innovation

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