EIP 1559

[vikash-mandal747]

what is EIP 1559 ? what is the main uses of EIP 1559

[HarigovindM-G]

EIP 1559 is a Ethereum Improvement proposal which was aimed to change the fee structure of the transactions in Ethereum chain.
It introduces the concept of baseFee and priority fee . I will try to explain it in simple terms , so before EIP 1559 if the network was highly congested you will need to pay more gasfee for your transaction to go through and all these gasFee would then be paid to the miners , also gasfee will be not very predictable . But with the EIP 1559 , a base fee was introduced and also priority fee which is also called the miner tip , the base fee get adjusted according to the level of network congestion , and to priority fee is to help miners prioritise thier job accordingly , so when you make a transaction you have to pay baseFee + priorityFee . The base fee gets burned, that is like it will be send to a unrecoverable address taking that much of ethereum out of circulation . This is so amazing because earlier instead of overpaying the miners , now we can increase the value of existing ETH by cutting down on the ETH in circulation , We may be able to say EIP 1559 has the potential to make ETH deflatory . I know this is a oversimplified answer and there is more to it .
If you want to know more , i will put a link to a youtube video that explains it pretty well is this good answer
https://www.youtube.com/watch?v=MGemhK9t44Q