What is EIP 1559 London Hard Fork ?

[Yugocean]

EIP1559 is a mandatory modification on Ethereum algorithm to improve the problem of Ether gas prize.

EIP1559 is a short term for Ethereum Improvement Protocol on block 1559. The EIP 1559 was named as "London Hard Fork" only to honour the city of London for Devcon conferences.

Reason of high GAS price -
The transaction cost for each block in Ethereum blockchain are spread predictably, therefore it requires an opaque auction to determine the cost for successful execute contracts on Ethereum. This process took a lot of gas for these to confirm the inclusion of transaction in the upcoming block; this causes this value to increase, which rises greatly during peak times. The London hard fork (EIP1559) was designed to address this problem.

Solution -
This update needed the burning of hundreds of tokens to paves the way for Ethereum 2.0, which will allow transparent determination of mining methods and transaction value.​

 

[Mika]

I have some fractions of ETH worth $200 based on the current price, however, apart from receiving these funds, I have never used Ethereum. Therefore I do not know exactly about the transaction cost. I have read about the potential decrease in ETH transaction cost after ETHereum 2.0 but I have also read that the transaction cost is almost the same for Ethereum 2.0.

 

[Yugocean]

I have read about the potential decrease in ETH transaction cost after ETHereum 2.0 but I have also read that the transaction cost is almost the same for Ethereum 2.0.

Yes because it is still Ether blockchain and the same gas is required. London hard fork is burning the extra etherr, this will reduce the supply in block and reduce the gas cost due to low liquidity. Miners are losing their control over blockchaing due to the burn, but resul t will take time.