Vitalik Buterin, co-founder and developer of Ethereum, has presented a new proposal focused on lowering the network's gas fees, which currently exceed $45,6.
In recent months, Ethereum network gas fees have been one of the hottest and most debated topics in the crypto industry. From users to investors and developers, many have at some point complained about the high commission fees they must pay to transact within the network or to interact with one of its DApp or DeFi protocol.
Ethereum, although it remains the network blockchain de smart contracts leader par excellence for the development of decentralized applications, protocols DeFi, NFT y Metaverses, has seen the number of new addresses created on the network, as well as on-chain adjusted volume, decline from their April highs by 30% and 56%, respectively, according to the data The Block. In terms of value, commission rates on the network have skyrocketed by 1.290% over the past year and 105% since last April.
Source: BitInfoCharts
Because of this, Vitalik Buterin, co-founder and developer of Ethereum, has introduced a new proposal to lower the blockchain network's gas fees and thereby reduce the high commission fees that currently exist. It should be noted that last August, Ethereum developers activated the update London, which included the EIP-1559; a major improvement proposal aimed at reforming the fee auction system on Ethereum and promising to reduce transaction fees within the network by establishing a base fee rate and token burning.
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EIP-1559 Multidimensional for Ethereum
Although the EIP-1559 improvement proposal was successfully activated on the Ethereum network, it has not caused the decrease in commission rates that many expected to see within the network after its implementation. That is why Buterin presented “EIP-1559 Multidimensional”, as a new proposal that will optimize the structure of its current commission system, improving the changes that were implemented in EIP-1559 last August.
As Buterin explained, Ethereum’s current fee system does not efficiently handle differences in gas limits for operations, interactions, and Ethereum Virtual Machine (EVM) resources, so differentiation of EVM usage types, call and transaction data, witness data, and so on is necessary. Buterin’s proposal wants to set the gas limit difference for each resource through two possible alternatives:
- Keeping the gas execution costs for each resource fixed, maintaining the changes currently implemented in the network since the arrival of EIP-1559. Thus, the developer explains that the base fee for a specific resource could be calculated by dividing by the total base fee for a block.
- Setting a base gas fee of 1 gwei without limiting the gas within a block; rather, the gas of each resource running on the network. This second alternative is the more complicated of the two, as Buterin explained, but it is the one that could make “Gas” and “ETH” become true synonyms.
In his proposal, Buterin also addressed the potential problems of miner centralization and the additional advantages it would bring to the network, such as increased resistance to DoS attacks. If this new proposal is accepted and implemented on the blockchain, the nightmare of high fees on Ethereum could end; at least until the arrival of the scalability network. PoS Ethereum 2.0.
Ethereum Competitors
As Ethereum struggles to become an accessible network for all types of users and investors again, many of its competitors continue to gain ground thanks to the usability and high performance they offer.
Blockchains such as Cardano, Solana, Avalanche, Terra, BSC, and Polkadot are capable of processing thousands of transactions per second at very low cost, which is why they have gained great acceptance and importance among developers and users of DeFi, NFTs, and Metaverses. Currently, these blockchains and cryptocurrencies, are in the Top 10 of the industry by capitalization. Layer two solutions such as Polygon and Arbitrum have also grown in use and adoption in the last year thanks to their high performance. Therefore, average users are betting on these new, more scalable, economical and accessible blockchain solutions in order to escape the high commission rates that currently exist in Ethereum.
At press time, ETH is trading near $ 3.000 dollars per unit.
Continue reading: EIP-3675, the official improvement proposal for the merger of Ethereum and Ethereum 2.0
