The upgrade is technically referred to as Ethereum Improvement Protocol 1559, or EIP-1559, but has also been dubbed the “London hard fork”.
A countdown on Ethereum’s website says it is scheduled to go live on Thursday, August 5, around 1:15 p.m. UK time.
The London hard fork was preceded by significant growth, with Ethereum climbing to over $ 2,600 (£ 1,900) on August 1, before falling slightly.
It is hoped that the upgrade could lead to continued growth of the world’s second largest cryptocurrency.
What is the “London hard fork”?
The goal of EIP-1559 is to make Ethereum transaction fees predictable for users.
At present, network users have to bid against each other for their transactions to be processed by miners. This means that the charges will end up being much higher when the network is busy than when it is quiet.
The change will see users pay a basic transaction fee, which will be determined by an algorithm based on network occupancy, and users will be able to view these fees in advance.
They will also be able to tip minors so that transactions are processed more quickly.
Miners will only get the tip, not the basic fee – which will be destroyed or “burned”, and that’s what investors are so excited about.
Burning coins limits the supply, which means that the existing supply could become more valuable.
How will this affect the price of Ethereum?
“Until it’s deployed, we don’t know exactly what the effect will be in terms of burnt ether,” said Ben Edgington, Ethereum developer at ConsenSys. Market insider.
Greg Waisman, co-founder and COO of the Mercuryo global payments network, said Coinbase: “Ethereum’s highly anticipated ‘London hard fork’ event will expose users to a more flexible and cheaper pricing structure and introduce a slight scorch effect, which is supposed to make Ether deflationary.
“The coin has been trending higher since the weekend, and we may see this emerging positive sentiment towards the coin push its price up to $ 3,000 in the next few days / weeks following the update. . “
The developers of Ethereum are planning to completely overhaul the coin’s network next year, which should have an additional impact on its price.