28. Jul. 2021 - News
Upcoming Ethereum London Upgrade: Clients do not need to take action, funds are safely secured
On or around 4 August 2021 the London Upgrade of the Ethereum blockchain will take place. Customers of Bank Frick do not have to get active and their funds are safely secured at any point in time. We have already started the work to be ready for the fork. The vault will be ready to support this once it goes live.
What changes on the Ethereum Blockchain?
This fork is merely seen as an upgrade of the existing Ethereum blockchain rather than a hard fork. The London Upgrade introduces two main optimisations, affecting the way transaction fees are handled in the future to make them more predictable on the network which will reduce today’s overbidding.
As a new mechanic, transaction fees will be split into two parts. The base fee, which will be set by the algorithm, will be burned once the transaction took place and path Ether’s way to become deflationary.
Along with that an additional tip system will be implemented as a form of a voluntary/optional fee for miners. Miners will therefore not receive gas fees anymore, but only an optional tip in addition to the block rewards.
Enhancing overall experience
It is assumed that the change will have positive effects on cost of transactions and therefore improving the overall experience using Ethereum. Furthermore, due to its new deflationary approach ETH becomes more attractive as a storehold of digital assets.
If you do have any questions about the upgrade or the security of your funds, please do not hesitate to contact us.
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