25 Feb

Ethereum: Vitalik Buterin indifferent to concerns of Chinese miners

Buterin talks about Chinese miners.

Miners could stop working, carrying out an attack at 51% of the protocol, or damaging the blockchain.

The EIP-1559 will reduce some mining revenues in the form of transaction fees

Ethereum co-founder Vitalik Buterin has spoken on Chinese social media about threats from miners regarding the upcoming EIP-1559 update.

Vitalik Buterin practiced some of his Chinese skills on local social media platforms. It appears that miners are increasingly worried about the approach of Ethereum’s EIP-1559 upgrade , which could threaten their burgeoning revenue streams.

According to Chinese industry portal Wu Blockchain, Buterin is indifferent to the threat some miners have made about destroying tools, or a potential 51% attack. In response to questions about the actions of the miners, he reportedly said: „We are all going to switch to PoS [proof-of-stake] as soon as possible“.

The media translated his comments, saying:

“Vitalik said that the main important thing about the EIP-1559 is that almost any trade can be confirmed in 1 to 2 blocks. At present, ETH congestion is very serious and the fees collected by minors have repeatedly reached record levels ”.

The growing discontent of minors

Bitcoin Up miners have made record revenues as transaction fees continue to climb to new all-time highs. This February 24 marks another high in terms of transaction fees , now hovering around $ 40 according to BitInfoCharts.

Earlier this month, BeInCrypto reported that Ethereum’s mining revenue had peaked, hitting $ 3.74 million in just one hour.

With this threat, the miners could take measures such as creating a fork chain after the implementation of the EIP-1559. This would be similar to what happened with Ethereum Classic , the original version of the blockchain before the DAO hack.

The EIP will change the way the current auction system works for transactions and allow them to be generated dynamically. This should reduce overall costs for the average user. It will also stop those fees which have to be paid in ETH which will have a positive effect on the long term supply.

These waived fees are good news for ETH holders as the supply is reduced, but not for minors who would otherwise have received them as payment for their work.

The future of Ethereum will in any case be proof-of-stake, and miners should therefore have accepted this inevitable change. However, the EIP -1559 is expected to launch with the London update in July, according to the developers.