Following the London update throughout the first week of August, it was assumed that EIP-1559 would certainly relieve at least some of the stress. However, the average transaction network fee continued to increase after the London upgrade reaching, $62 per transfer on November 9. Today ether gas fees are lower, $34 per transaction, but the cost to move an ERC20 token is $13.20, and swapping ETH-based tokens can possibly cost $28.27 per swap.
This causes L2 solutions to gain more usage, L2 solutions are much cheaper than the transactions fees on the mainnet Ethereum. The cost to send Ethereum via Loopring can cost up to $0.25 per transfer, Polygon costs $0.25, Zksync is around $0.27, Optimism costs $2.39 today, and transferring with Arbitrum One is around $2.43 per transaction.
Buterin’s current article complies with the conversations that happened at end of November, when Ethereum developers spoken about principles such as EIP-4488. This proposed strategy might decrease transactions fees 5 times less, and Ethereum developer Tim Beiko shared his ideas on EIP-4488 and reducing the expenses of rollups. In the Endgame blog post, Buterin also spoken about leveraging rollups and this technology’s long-lasting future.
In an article called “Endgame,” released on December 6, the co-founder of Ethereum, Vitalik Buterin talked about strategies to enhance scaling, the forthcoming proof-of-stake transition, and censorship resistance.
In his post, Buterin looks for to strike a balance in between scalability and centralization. However, he does not provide any full-proof solution to this. He mentions 4 significant factors in achieving scalability. This consists of:
Adding a 2nd tier of staking, with reduced resource requirements, to do dispersed block validation.
Introducing either fraud proofs or ZK-SNARKs to allow users straight (and inexpensively) check block validity.
Presenting information availability sampling to allow users inspect block availability.
Adding secondary transaction channels to prevent censorship.
In the blog post, Buterin goes on to describe how to acquire each of these 4 points. But regardless of implementing these updates, the obstruct production will not be completely decentralized. Buterin notes:
“We get a chain where block production is still centralized, but block validation is trustless and highly decentralized, and specialized anti-censorship magic prevents the block producers from censoring”
Buterin further adds: “It’s somewhat aesthetically ugly, but it does provide the basic guarantees that we are looking for: even if every single one of the primary stakers (the block producers) is intent on attacking or censoring, the worst that they could do is all go offline entirely, at which point the chain stops accepting transactions until the community pools their resources and sets up one primary-staker node that is honest”
“Ethereum is very well-positioned to adjust to this future world, despite the inherent uncertainty,” Buterin stresses. “The profound benefit of the Ethereum rollup-centric roadmap is that it means that Ethereum is open to all of the futures, and does not have to commit to an opinion about which one will necessarily win.” Buterin further said:
“Ethereum researchers should think hard about what levels of decentralization in block production are actually achievable. It may not be worth it to add complicated plumbing to make highly decentralized block production easy if cross-domain MEV (or even cross-shard MEV from one rollup taking up multiple shards) make it unsustainable regardless” he also added:
“No single rollup succeeds at holding anywhere close to the majority of Ethereum activity. Instead, they all top out at a few hundred transactions per second,” noted Buterin.
Buterin keeps in mind that regardless of any course of scalability, the block production will certainly end up centralized. However, the benefit of the roll-up-centric roadmap is that it is open up to all in the future.
The Ethereum developers have been working hard for the Etheruem 2.0 PoS shift. The recent London hardfork was an action in the direction of the implementation of the EIP-1559 protocol that makes the Ethereum deflationary. If Ethereum fixes the scalability issues, along with the transactions fees, it’s inevitable to see new ATH for Ethereum, more than $8000 till the end of 2022.
DISCLAIMER: Content of this website references an option and is for information purpose only. It is not intended to be investment advice. Seek a licensed professional for investment advice.
