Ethereum, the second-largest cryptocurrency by market capitalization, is facing scaling issues as the network becomes more expensive and crowded. To address this, Ethereum co-founder and crypto billionaire, Vitalik Buterin, has suggested a “modest” increase in the gas cap to potentially enhance the network’s throughput.
The gas limit refers to the maximum amount of gas that can be used in each block to execute transactions or smart contracts. Gas is the term for the money required to perform a transaction or execute a contract on the Ethereum network. A gas limit is set to prevent overly large blocks from affecting network synchronization and performance. The gas limit is set by miners or validators, who create blocks and verify transactions. They can dynamically adjust the gas limit within certain parameters as they generate blocks. Increasing the gas limit allows more transactions into each block, thereby improving the network’s capacity and throughput. However, it also puts more pressure on the system and increases the risk of network spam and attacks.
During a Reddit “ask-me-anything” session held by the Ethereum Foundation’s Research Team on January 10, Buterin noted that the gas cap has not been raised in nearly three years, the longest period in the protocol’s history. This was due to concerns about increasing the uncle rate, or the proportion of blocks that are discarded and not part of the main chain. A high uncle rate compromises the network’s efficiency and security.
Buterin suggested that a “modest gas limit increase even today is reasonable.” He estimated that this would mean an increase of over 40 million. Given that the current gas cap is 30 million, this would represent a 33% increase. Buterin also argued that the adoption of the Geth client, the most commonly used software for running Ethereum nodes, and improvements in network propagation have reduced the uncle rate. He added that the upcoming Ethereum 2.0 update, which will transition the network from a proof-of-work to a proof-of-stake consensus mechanism, will not be affected.
The Ethereum community has had mixed reactions to Buterin’s proposal. Some support the idea, believing it will improve Ethereum’s user experience and adoption, and reduce transaction costs and wait times. Others oppose the proposal, arguing that it could compromise Ethereum’s security and stability and increase the network’s centralization and complexity.
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, Etherscan, Geth client |
| Currencies | Ethereum |
| Securities | None |
