EIP-1559, technically known as Ethereum Improvement Protocol 1559 has been included in a network upgrade called the “London hard fork” on August 4. Opensea, MakersPlace the mostly known NFT marketplaces have upgraded the Ethereum network with EIP-1559, and so as EdenLoop.
What is EIP-1559?
Ethereum, the second-largest cryptocurrency and the blockchain that runs ether.
A major upgrade to Ethereum, the blockchain that runs ether, has made an improvement on changing the transaction fees a.k.a. “gas fees”. Gas fees are payments made by users to compensate for the computing energy required to process and validate transactions on the Ethereum blockchain. This protocol has strengthened the Ethereum ecosystem which is familiar with its smart contract capabilities that runs DeFi (decentralized finance), apps and NFTs (Non-Fungible Tokens).
Before the application of EIP-1559 on Ethereum network, users or traders were required to make a rough guess on the calculation of gas fees. The price of gas depends on supply and demand for the computational power of the network needed to process smart contracts and other transactions. This indicates that users had to pay more gas fees to process transaction ahead in contrast transaction may be declined and fail to process when users pay lesser gas fees.
Application of EIP-1559 on EdenLoop
EIP-1559 flips a typical blockchain transaction on its head that fixes numerous issues with Ethereum’s user experience.
EdenLoop, a NFT marketplace, aims to serve customer first service and customer friendly environment for users to trade NFTs has applied EIP-1559 to the platform. The application of this protocol, result in users to not need to estimate the price of gas fees, as gas fee will be sent to the network itself as a sort of “burn” called basefee with only an optional tip paid to miners. The burnt fee is algorithmically set as well, ostensibly making it easier for users to pay a fair fee. In this way, prior fee can be paid if users claim to prioritize their transactions on the blockchain.
As a result, users will not have to estimate gas fees needed to trade, while transaction will be processed smoothly on EdenLoop for trading NFTs.