On April 15, Ethereum went through an update called ‘Berlin’, whose goal was to bring improvements to the network, restructuring fees.
“This is precisely the scalability issue which the developers of the ETH network are tackling. The gas fees are huge”, said Transfero’s head of Business Development Latam, Julian Lanzadera.
According to the expert, if the updates promote greater efficiency in the Ethereum network, making it cheaper and faster, BRZ holders should also benefit. “BRZ was issued in the Ethereum blockchain and most of it flows over on this platform. So as the upgrades make the network more efficient, with lower transaction costs, the BRZ becomes more attractive”, he explained.
Ethereum updates should reduce fees
The April update took place in block 12.244.000 of Ethereum, increasing the Ethereum Proposals of Improvement (EPI) in the main network, which had been under test since March.
The tests aimed to speed up some of the network’s processes, directly impacting the reduction of gas charges. Such an issue has been Ethereum’s main problem since its ecosystem started to be used by most DeFi (decentralized finance) applications and NFTs.
New updates to Ethereum (EIP-2565, EIP-2929, EIP-2930, and EIP-2718) should reduce fees and introduce a new type of business – in such case, the exchange will be able to combine transactions and administer the custody of fees to the user.
In July, Ethereum will go through another hard fork
Although the current adjustment improves the network fees, the high access demand can make the transactions expensive as they were before. Therefore, a new adjustment is planned for July, dubbed ‘London’, which is expected to incorporate EIP-1559, a proposal that will reduce ether supply.
Four major changes were planned to the Ethereum system through the so-called EIP, the ‘Berlin’ first. With the change, the increased fees will no longer make sense for the miners, who will win only the Ether generated in the mined block. From the ‘London’ phase on, the operations for approving blockchain blocks will become more complex, which raises the cost on the miner side.
In the planned third phase, several small operations can be compiled into a single transaction, further lowering the cost of operation.