EIP-1559: Ethereum blockchain or the benefits of ETH miners?

[MrSpasybo 1049]

Ethereum developers recently proposed a network change called EIP-1559 — a proposal meant to combat the network's rising transaction fees. 
This change would also decrease the amount of rewards going to the network's miners, leading some to protest the move. A vocal group of participants have since begun to advocate for a demonstrative network takeover, which could threaten the security of the network. 

“The goal of this document is to describe a mechanism by which a merge can happen quickly, with little modification to either the ethpow or beacon clients,” said Buterin. This move would essentially transition the network to Ethereum 2.0 faster than expected.

“Like clockwork, the Ethereum community has quickly organized potential solutions to this possible 51% attack, with Vitalik leading the charge”.

 

Article: Buterin helping to strategize against Ethereum 51% attack possibility

 

It can be said that EIP-1559 is becoming the focus of much debate in the Ethereum community. Many people rejoice because it will help reduce transaction costs and also reduce the supply of ETH in the market, helping holders & traders to receive more benefits. But there are also those who are dissatisfied because their profits will be decreased - ETH miners.

 

We need to understand that Miners are people with great economic potential, they own mining farms and have each link together. Currently, they want to hold a strike to revolt on April 1, by switching to the pool against EIP-1559. I don't call it the 51% attack, it's the 51% strike. And I believe they have the ability to do that.

I understand their pain, but their plan can cause the entire Ethereum blockchain to suffer and the price of ETH to be affected.

Vitalik Buterin spoke up. He says there is enough strategy to counter the upcoming 51% strike if it happens. I'm not sure how he will do it, but I believe he & the Ethereum community will protect the Ethereum blockchain.

At the same time, Vitalik Buterin also announced that the development team is speeding up the completion of ETH2.0, as such, POW will soon be replaced by POS and the entire ETH niners will not only lose 50% of profits as because of EIP-1559, which is going to lose 100% of profits because of POS.

 

Which side are you on the battle for interests? Do you think that ETH miners have made enough profits in the past time when transaction fees are too high and should share the pain with the community? Do you think that Vitalik Buterin has taken the power of ETH miners lightly? And do you support the EIP-1559?

[Whited35 15285]

19 hours ago, MrSpasybo said:

Which side are you on the battle for interests?

I support the hybrid system proposed by EIP-1559.

19 hours ago, MrSpasybo said:

Do you think that ETH miners have made enough profits in the past time when transaction fees are too high and should share the pain with the community?

Definitely yeah. Especially, when the DeFi craze was at the peak, they have managed to earn a huge benefits off ETH mining fee by adjusting the high fee. EIP-1559 has proposed the system to burn the basefee allowing them to receive tips from the users so some mining pools are discussing for the fork but I do not think they will get succeed on such split network. 

19 hours ago, MrSpasybo said:

Do you think that Vitalik Buterin has taken the power of ETH miners lightly?

Yes, I believe their plan for "London hard fork" will be successful as so many mining farms have already supported the proposal except some Chinese mining pools. 

19 hours ago, MrSpasybo said:

And do you support the EIP-1559?

Definitely, I support the proposal because it has aimed to reduce the transaction costs to run so many Ethereum network based applications. 

[MrSpasybo 1049]

@Whited35With the support from the community, I believe that even if the 51% attack did happen, the community would still be on the side of the Ethereum development team instead of the ETH miners.
POS & EIP-1559 is a necessary condition for the Ethereum network to retain users and have the opportunity to grow stronger in the future. Miners are just one part of ecosystem, they cannot capture the full benefits of the network and kill Ethereum.

[Jack764 1841]

This matter is positive for Ethereum users and traders, but it is not relevant for miners, as they are less warm, but the positive overcomes the negative due to the greater number of traders.

[MrSpasybo 1049]

@Jack764ETH miners have been making huge profits in the past 6 months thanks to soaring transaction fees on the Ether blockchain, do you think it's time for them to share the burden of transaction fees with the community? When the entire ecosystem benefits, the price of ETH will also increase and they will also benefit because we know that ETH miners are also large holders.

[MrSpasybo 1049]

Update: It seems the Ether community can rest assured that EIP-3368 will relieve the tension between the Ether development team and ETH Miners 🙂
The 51% strike on April 1 may not be necessary anymore.

 

The new proposal, EIP-3368, advocates that block rewards immediately be increased to 3 Ether (ETH) and then reduced to 1 Ether over the two years following EIP-1559’s implementation to ease the impact on miners of Ethereum’s transition to proof-of-stake.

 

Article: New EIP hopes to quell tensions between Ethereum’s miners and developers

[kryptonick 2659]

I have also read about the miners trying to coordinate a 51% attack, and I am very happy it was in this forum by a top content creator of the forum, @Whited35 . I didn't have time to thank for giving this news, and I remembered about this a few days ago when news appeared on some part of the Ethereum mining community getting ready to fight EIP-1559.

First of all, I love Ethereum and I was using it for years, but I can't cope with these high fees, I am 100% backing EIP-1559, but I will only be happy when I see transactions in Ethereum will cost just a few cents.

 

But there is also another problem.

In the case of Bitcoin, it is driven by consensus, meaning that the community decides together and in case the code is to change. This is not a case of voting, but the decision making process in Bitcoin, where everyone has to agree. If someone doesn't agree, for example a miner, then they are excluded.

Ethereum is also supposed to have consensus mechanism for the decision making process. It is supposed to be an autonomous network where nobody has power over the decision making.

And yet, EIP-1559 was decided by the devs, probably agreed by 99,99% of the users, but miners maybe aren't backing it.

If 51% of the miners don't update the code to the new software designed by the Ethereum devs, then the new software won't be launched, and those miners that updated, will be met with a huge cost of having mined invalid blocks. This happens during forks. And there is also a big problem when the Ethereum developers decide, but miners don't agree.

Miners are acting as companies and want to maximize profits. If they can fight an upgrade or fork that will lower their profitability, then they will do it. But they won't 51% attack Ethereum. What they want to display with the recent move, is that they can block EIP 1559 by not upgrading it, in the case they make up to 51% hash rate at the block of the fork.

Edited March 16, 2021 by kryptonick

[MrSpasybo 1049]

@kryptonickI think now, with the advent of EIP-3368, the losses from user transaction fees will be offset by the block reward of the Ether blockchain, ETH miners can rest assured and cooperate with EIP-1559. It can be said that the developers of Ether have been very smart about solving this problem gently. Perhaps this is the solution that Vitalik Buterin mentioned 🙂
At least for now we don't have to worry too much about 51% strike on April 1st.

[Whited35 15285]

On 3/16/2021 at 11:20 PM, kryptonick said:

If 51% of the miners don't update the code to the new software designed by the Ethereum devs, then the new software won't be launched, and those miners that updated, will be met with a huge cost of having mined invalid blocks. This happens during forks. And there is also a big problem when the Ethereum developers decide, but miners don't agree.

Exactly here are the crucial points to be noted. Thanks for explaining everything so nicely. Some miners say Chinese miners from some of the biggest mining pools might create the forks because invalid blocks will not be supported by the existing blockchain and hence result will be ended up with the forks. Myself, I strictly hate the common demerits of blockchain to allow miners to create forks to split the crypto community that's why improved technology like Polkadot has already disabled the creation of new forks.

Maybe, ETH 2.0 will also prevent such activities but we have to see how proposed systems come into the existence after the London hard fork. 

Edited March 18, 2021 by Whited35

[MrSpasybo 1049]

@Whited35Although I do not like the strike of ETH miners, but I think the event also shows the decentralization of blockchain, the power is divided among the community instead of being centralized in an authoritarian force 🙂
I think that Vitalik Buterin will continue to maintain this at the POS phase because Ethereum needs to be a value/rules-driven person for the entire altcoin community.

[Whited35 15285]

6 hours ago, MrSpasybo said:

@Whited35Although I do not like the strike of ETH miners, but I think the event also shows the decentralization of blockchain, the power is divided among the community instead of being centralized in an authoritarian force 🙂

You are correct but only one reason that I hate extra forking is: Such forked network is often targeted by the majority attack like you may have noticed on Ethereum Classic blockchain. BCH was undergoing for the multiple split.At least limited participating nodes can take control over the overall hashrate that's the problem. 

6 hours ago, MrSpasybo said:

I think that Vitalik Buterin will continue to maintain this at the POS phase because Ethereum needs to be a value/rules-driven person for the entire altcoin community.

He has always been the most important person no matter it is the decentralized community. Buterin has the potential to bring the change. 

[Ridam 7455]

On 3/13/2021 at 9:33 PM, MrSpasybo said:

We need to understand that Miners are people with great economic potential, they own mining farms and have each link together. Currently, they want to hold a strike to revolt on April 1, by switching to the pool against EIP-1559. I don't call it the 51% attack, it's the 51% strike. And I believe they have the ability to do that.

I understand their pain, but their plan can cause the entire Ethereum blockchain to suffer and the price of ETH to be affected.

I also think that the price of Eth will get effected on the day of april 1 because of the miners action. Although, the attack would be 51% collusion attack, I am sure many news website will refer it as 51% attack and the fud will not take longer to spread. I want to inform the Cryptotalk community that there is no need to worry about it. The effects will not be that much great even if this happens.

And the Vitalik has announced about the Scaling of the Network within coming weeks. So we can expect the problem ETH is facing will be solved sooner increasing the overall activity of the network.

[MrSpasybo 1049]

@Whited35We should not set a bad precedent that could negatively affect the future of the Ethereum blockchain.
Vitalik Buterin likes decentralization, as he condemned other blockchains for sacrificing decentralization in order to gain speed.

 

@Ridam I think Ethereum's development team has the best solution for ETH miners. They will have additional compensation to compensate for the amount of ETH burned.

On 3/16/2021 at 12:36 AM, MrSpasybo said:

Update: It seems the Ether community can rest assured that EIP-3368 will relieve the tension between the Ether development team and ETH Miners 🙂
The 51% strike on April 1 may not be necessary anymore.

 

The new proposal, EIP-3368, advocates that block rewards immediately be increased to 3 Ether (ETH) and then reduced to 1 Ether over the two years following EIP-1559’s implementation to ease the impact on miners of Ethereum’s transition to proof-of-stake.

 

Article: New EIP hopes to quell tensions between Ethereum’s miners and developers

 

[Whited35 15285]

9 hours ago, MrSpasybo said:

@Whited35We should not set a bad precedent that could negatively affect the future of the Ethereum blockchain.Vitalik Buterin likes decentralization, as he condemned other blockchains for sacrificing decentralization in order to gain speed.

Yes friend. Everything is looking like to be okay for Ethereum's future. I have been closely following Vitalik Buterin on Hackernoon, his ideas are incredible as Ethereum can go beyond than our imagination. Vitalik has the plan to contribute this active Ethereum community by introducing fifth generation blockchain protocol😉 .