Domain name registration address: The EIP-1559 transaction allows Coinbase and Coinbase users to save ETH gas prices without sacrificing confirmation time. Coinbase also burned a large amount of ETH, permanently reducing the supply of the second largest cryptocurrency by market value.
On August 5, 2021, as the last hard fork before the transition to Proof of Stake/ETH 2.0, the “London” upgrade of Ethereum was successfully launched on the mainnet.As one of the most anticipated upgrades, London includes major changes in Ethereum’s monetary policy and transaction fee structure -EIP-1559 — Facts have proved that this is beneficial to both Coinbase and ETH holders.
In the previous legacy transaction in London, the sender will specify a single gas_price they are willing to pay for the transaction, and the miner will select the transaction based on the first price auction. In London, the gas price paid by the sender partly depends on the block-to-block base_fee_per_gas, which rises and falls with the use of the network.
The EIP-1559 transaction allows the sender to specify two values: max_fee_per_gas and max_priority_fee_per_gas. The former is the upper limit of the total gas price that the sender is willing to pay, while the latter is the upper limit of the gas price that the sender is willing to pay to transaction miners. Effective_gas_price, the amount actually paid by the sender, is calculated as follows:
priority_fee_per_gas = min(
transaction.max_fee_per_gas — block.base_fee_per_gas
effective_gas_price = priority_fee_per_gas + block.base_fee_per_gas
The base_fee_per_gas of the block is destroyed, thereby making the local currency more deflationary and returning the value to ETH holders.
Although there is great uncertainty surrounding the market impact of EIP-1559, we at Coinbase have taken a proactive approach to ensure that our infrastructure is ready to send EIP-1559 transactions on the first day of the fork.People-based work, such as Zsolt Felföldi with Frederick Balding, We have developed a novel natural gas pricing algorithm for these transactions.Crucially, it takes advantage of the new eth_feeHistory The JSON RPC API allows us to dynamically calculate the appropriate max_priority_fee_per_gas based on market conditions.
We are rolling out this change gradually so that we can compare the indicators of the old transaction and the EIP-1559 transaction. Our findings are surprising:
- On average, we Save about 9% of the effective natural gas price (This is calculated based on the difference in gas price confirmed between the traditional transaction and the EIP-1559 transaction).
- At the same time, we Reduced our broadcast to confirmation time by 11 seconds, Or 0.7 blocks (this is calculated based on the difference between the broadcast to confirmation time between the traditional transaction and the EIP-1559 transaction).
As Taylor Monaghan Hypothesis, We suspect that we can save fuel prices and shorten the confirmation time at the same time, because the max_fee_per_gas we specify is significantly larger than the current base_fee_per_gas. This makes the effective priority_fee_per_gas greater than the equivalent legacy transaction, and incentivizes miners to include our EIP-1559 transaction in the next block.
Coinbase executes a large number of transactions on Ethereum to obtain liquidity and provide withdrawals for our customers, so these savings add up.As of September 27, 2021, Coinbase has 13,800 ETH burned, Average about 254 ETH per day. this means We save about 27 ETH every day Regarding the gas price from the EIP-1559 transactionSeeing these data, we have extended EIP-1559 to 95% of transactions, leaving a small portion for data collection purposes. We intend to eventually promote it to 100%.
The London upgrade is not only a remarkable achievement for Ethereum, but also for the entire decentralized financial network. A group of different players from all over the world gathered to implement a complex transformation of one of the core mechanisms that determine market prices. We look forward to continuing to cooperate with the Ethereum community to jointly promote the frontier development of DApps and DeFi, and open a new era of ETH 2.0.