How Ledger Manages Ethereum Hard Forks

Key Takeaways

• Ethereum Hard Forks: The Berlin and London forks in 2021 introduced critical protocol changes, requiring client implementations to upgrade.
• Crisis Management: Ledger swiftly resolved a node compatibility issue during the Berlin fork, ensuring uninterrupted services.
• NFT Support: Adapting to NFT transactions required re-indexing the blockchain, optimized through EVM tracing improvements.
• Client Commitment: Ledger prioritizes seamless user experiences by staying updated with Ethereum innovations and maintaining full transaction accountability.

Understanding Ethereum Hard Forks

A hard fork occurs when a blockchain’s protocol changes irreversibly, splitting the chain into two versions: the original and the updated one. For users, this means:

• Node upgrades are mandatory to stay on the validated chain.
• Outdated nodes risk isolation on a defunct parallel chain.

👉 Learn more about blockchain forks

The Berlin and London Forks

• Berlin Fork (April 2021): Introduced at block 12,244,000, it optimized gas fees and added new transaction types.
• London Fork (July 2021): Activated at block 12,965,000, it implemented EIP-1559, making ETH deflationary by burning base fees.

Impact: These forks altered Ethereum’s economic model, requiring client-side adjustments.

Ledger’s Technical Response

Client Node Migration

Initially, Ledger relied on OpenEthereum for its transaction-tracing capabilities. However, the Berlin fork exposed vulnerabilities:

• Issue: OpenEthereum’s delayed compatibility patch halted block processing.
• Solution: Ledger migrated to Go-Ethereum (Geth), the reference implementation, despite higher computational costs for internal transaction tracing.

EVM Tracing Optimization

To support NFTs, Ledger re-indexed the entire blockchain, addressing bottlenecks:

• Challenge: JS-based tracers in Geth slowed indexing (8–10 blocks/sec).
• Breakthrough: Custom Go tracers boosted speed, though still slower than OpenEthereum.

👉 Explore Ethereum client nodes

Ensuring Full Accountability

• Internal Transactions: Critical for tracking contract interactions (e.g., NFT marketplaces).
• Limitations: Web3 APIs lack native support for internal calls, necessitating manual EVM replay.

Ledger’s Approach:

1. Index all balance-changing events.
2. Use debug_traceTransaction to reveal hidden contract calls.

FAQs

1. What happens if I don’t upgrade my node during a hard fork?

You’ll remain on the deprecated chain, losing access to updated network features and assets.

2. How does Ledger handle NFT transactions?

By re-indexing historical data and optimizing EVM tracing to include past NFT transfers.

3. Why did Ledger switch from OpenEthereum to Geth?

OpenEthereum’s instability during the Berlin fork prompted a shift to Geth’s reliability.

4. Are internal transactions visible in Ledger Live?

Yes, through advanced tracing, though they’re not natively supported by Web3.

5. How does EIP-1559 affect ETH holders?

It reduces ETH supply over time by burning transaction fees, potentially increasing scarcity.

Commitment to Excellence

Ledger continuously enhances its infrastructure to:

• Support emerging standards (e.g., NFTs, EIPs).
• Maintain transparency with full transaction histories.
• Resolve crises swiftly, as demonstrated during the Berlin fork.