Ethereum co-founder Vitalik Buterin has proposed a significant change to the Ethereum network’s gas limit. During a Reddit “ask-me-anything” session organized by the Ethereum Foundation’s Research Team, Buterin suggested raising the gas limit from its current 30 million to 40 million, a 33% increase. This proposal aims to address Ethereum’s evolving usage and adoption since its inception in 2015 and boost the network’s throughput.
The gas limit is a crucial aspect of the Ethereum network, denoting the maximum quantity of gas available in each block for transactions or smart contract executions. This constraint, which hasn’t changed in almost three years, maintains block sizes, ensuring network synchronization and performance. Validators can adjust the gas limit within predetermined bounds as they build blocks, balancing network capacity and performance.
Buterin’s proposal considers Ethereum’s history since its founding in 2015, when the gas cap was roughly 3 million gas units. This limit has grown over time, and the current plan seeks to improve it further. If the gas limit is increased to 40 million, more transactions can fit inside each block, potentially increasing the network’s overall capacity. However, this move could put more strain on the hardware and introduce new risks like network spam and security threats.
Currently, the average gas price for Ethereum users is about 35 gwei or $1.89 per transaction, with higher costs for complex smart contract activities. Gas prices have increased since the start of 2024, peaking at 150 gwei in May 2023. This spike is attributed to the demand for inscriptions, highlighting the need for the network to be scalable and economical.
Buterin’s suggestion rekindles the ongoing debate about Ethereum’s and Bitcoin’s scalability. Users and developers are still seeking solutions that balance network efficiency, capacity, and affordability, especially given the increase in network fees brought on by another round of inscription frenzy in November 2023.
As Ethereum grows in complexity and demand, it must perform a delicate balancing act. While a higher gas limit promises improved throughput, it necessitates careful consideration of the network’s stability and security. Ethereum users have felt the impact of shifting network fees and gas prices in recent months. During the inscription frenzy, gas rates shot up to 150 gwei, making transactions on the network exceptionally costly. Although the proposed increase in the gas limit could potentially lower prices, users should remain cautious due to the possible effects on network security and stability.
The native cryptocurrency of Ethereum, ETH, is currently trading at $2,603.12 with a 24-hour increase of 10%. The plan to raise the gas limit may impact the dynamics of the ETH market by affecting investor perceptions of the network’s long-term health and scalability.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Vitalik Buterin |
| Companies | Ethereum Foundation’s Research Team, etherscan.io, Crypto News Flash |
| Currencies | Ethereum |
| Securities | None |
