Ethereum cryptocurrency upgrade 4 key facts revealed - Here are the 4 keys you should know about the Ethereum cryptocurrency upgrade.
This Thursday will arrive the expected ethereum network update, initially planned for today, which will change the way transaction fees work and will involve the destruction of cryptocurrencies.
The change is technically known as the Ethereum 1559 Upgrade Protocol, or EIP-1559, and will be included in a network update called the "London hard fork."
These are the 4 keys you should know:
1-EIP-1559 aims to make transaction fees more predictable
Switching to ethereum will try to make transaction fees more predictable, which will mean making the network easier to use.
Tariffs are very volatile, largely because the network uses an auction system. Users compete with each other to have their transactions processed and verified by other users, the miners.
Transaction fees can skyrocket when the network is busy. But the main problem, according to the developers, is that the blind auction system makes rates very volatile and unpredictable.
After EIP-1559, users will pay a "base rate", which will be algorithmically determined by the network depending on how charged it is, rather than submitting offers. They will also be able to pay a miner a " tip " so that their transaction is processed earlier.
The idea is that the base network fee is always clear to users as they enter transactions, without jumping from one minute to the next. If the rate is uy high, users can wait for it to go down.
Ethereum cryptocurrency upgrade 4 key facts revealed
2-It will destroy coins and can boost the ether
The EIP-1559 update has been enthusiastically received among investors because it will destroy or "burn" the ether, the cryptocurrency of the ethereum network.
With this destruction of cryptocurrencies, miners will be able to stop congesting the network to keep fees high.
Some investors believe that the fact that the supply of ether is limited by combustion could lead to a deep growth in prices.
But the influence on price is far from certain, the developers say. It will also depend on things like transaction volumes, which determine how high the fees are or how much ether is destroyed.
"Until implemented, we don't know exactly what the effects of burning ether will be," explains Ben Edgington, Ethereum developer at ConsenSys.
Ethereum cryptocurrency upgrade 4 key facts revealed
3-Transaction fees will not necessarily be cheaper
Transaction fees on the ethereum network may fall because a more predictable base fee is likely to help users pay more less often than with the system based on the highest bidder winning.
But EIP-1559 doesn't aim to reduce transaction fees, just make them more predictable. The base rate itself will vary. It will go up when the net is busiest and it will go down when things are quieter.
Ethereum cryptocurrency upgrade 4 key facts revealed
4-Bigger changes are coming in the ethereum network
The EIP-1559 update is small compared to ethereum 2.0, a review of the entire network infrastructure that developers expect to be complete by early 2022.
Ethereum 2.0 will see changing the network from a "proof of work" system to a "proof of stake"system. Under proof of work, miners use large amounts of computing power to verify transactions. But under the proof of stake, users will present ethers to get the right to verify transactions and thus earn cryptocurrencies.
Developers are also working to expand the ethereum network by adding more side networks and linking them. Ethereum connoisseurs expect this to reduce congestion and transaction costs.
Ethereum cryptocurrency upgrade 4 key facts revealed
More news:
If you are self-employed and pay or receive more than 1,000 euros in cash you can receive this fine
If you are a freelancer you should be especially careful with cash operations. Although it is increasingly common to make all card transactions or through online banking, the truth is that in the day to day of a business can occur situations in which cash payments are common and in significant amounts.
The Treasury considers that cash payments are a key point of the black economy. Due to this, the Government has approved Law 11/2021, of 9 July, popularly known as "anti-fraud law".
This regulation regulates all matters relating to the use of cash. The main novelty is that it has lowered the limit of cash payments to 1,000 euros maximum for entrepreneurs and self-employed. Previously, the limit was set at 2,500 euros.
This means that a shop or restaurant can not accept cash payments over 1,000 euros, and do not have the option of making transactions that exceed this amount if they are intended to be made in cash.
Otherwise, the self-employed or entrepreneurs who are in charge of these businesses face an economic sanction that is included in the new law.
The law on combating tax fraud provides that fines are 25 per cent of the penalty base. That is, in a payment greater than 1,000 euros the fine will be 25% of this amount. In this specific case the offender must pay 250 euros.
Of course, if the amount is higher the payment will be higher. An operation of 6,000 euros in cash will be penalized with 1,500 euros.
Of course, this law has an exception that is worth reviewing and that is related to the payment of money from foreigners.
According to the new regulations, the cash limit "will be 10,000 euros or its equivalent in foreign currency when the payer is a natural person who justifies that he does not have his tax domicile in Spain and does not act as an entrepreneur or professional", so an entrepreneur or self-employed can accept payments from tourists that exceed 1,000 euros in these cases.
Finally, if you receive one of these penalties, you can benefit from a reduction from agreed minutes of 50% to 65%. In the case of prompt payment the reduction is 40%.