Ethereum co-founder Vitalik Buterin in a new blog post explains why the main Ethereum system needs higher transaction handling space to support its growing userbase.
According to Buterin Ethereum should keep its Layer 1 infrastructure strong because it protects assets from threats and ensures independent operations while building Layer 2 enhancements.
The gas limit sets the highest amount of processing power that blocks must handle to process transactions efficiently. Enhancing the number of transactions per block would help Ethereum handle more work while decreasing fee costs.
Expanding L1 Gas Capacity: A Game Changer for Ethereum
Buterin’s findings show a 10 times larger L1 gas capacity will let the blockchain run well when applications move to L2 platforms. The Ethereum network delivered a 20% gas limit upgrade by raising the number from 30 million to 36 million for its users.
The next logistics of gas expansion depend on better Ethereum clients, EIP-4444 storage Data reduction, and subsequent stateless technology implementation. These technical updates would make Ethereum more efficient which then lets people switch to blockchain easily while spending less per transaction.
The main objective of Buterin’s plan is to keep Ethereum’s foundation free from alterations by external entities. According to his analysis those systems which let users move money in a decentralized network currently need $4.50 worth of gas to work at the present fees.
When L1 capacity grows by 4.5 times it will make transactions run smoothly even when the network faces heavy traffic and reduce processing costs. The movement of cross-L2 assets and big NFT transfers costs around $14 each operation today.
Lowering Transaction Costs: Ethereum’s Path to $0.28 Fees
Buterin shows transactions could drop to $0.28 when the network goes from current capacity to a 5.5 times or 6 times size. This transformation would open Ethereum to wider adoption. Four needs secure L2 to L1 transition pathways for users requiring this move in future Ethereum operations.
According to Buterin the Ethereum system can handle 7.56 million to 32.4 million user exits over one week to 30 days under the present conditions. The network can serve many more users during high usage times because improved protocols let Ethereum handle exits with only 7,500 gas instead of 120,000 gas.
According to Buterin ERC20 tokens that run on L2 networks need a robust L1 base for security against governance threats. The Railgun token demands over 1.6 million gas when minted on L1 according to him.
The expenses stay too expensive even when gas prices decrease from 120,000 to 7,500 per launch because each launch costs about $4.50. To make token offerings available to everyone Buterin believes 18 times better scaling would bring down launch costs.
Ethereum’s Gas Expansion: Balancing Decentralization and Efficiency
The practical use of keystore wallets poses operating problems. Buterin believes 3.3 times more gas capacity will likely be needed since key updates need about 50,000 gas to function. With enhanced efficiency technology the needed security updates for wallets would drop to 1.1 times current levels. This would allow smoother wallet security management.
To keep working with Ethereum’s main chain L2 solutions need constant proof submissions. The present method for evidence submission demands substantial costs and diminishes the number of operating L2 networks.
Buterin finds that advanced aggregation would bring submission fees close to 10,000 gas allowing regular L2-L1 updates to stay affordable. The importance of keeping Ethereum’s core functioning well supports the development of L2 solutions.
Ethereum gas expansion protects decentralization while making asset exchanges smooth, letting many tokens leave the network and improving token creation and multi-blockchain interaction. Since Ethereum developments need strategic controls to keep the network secure and productive for users.
Ethereum needs to manage both Layer 1 and Layer 2 networks to create a system that serves growing user requirements.
