Vitalik Buterin Says Ethereum Gas Fees Should be Below $0.05 to Increase Adoption

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Ethereum
Vitalik Buterin Says Ethereum Gas Fees Should be Below $0.05 to Increase Adoption

Vitalik Buterin asserted about the cheap fees of L2 solutions in response to Ryan Sean Adam’s tweet. Buterin stated that gas fees should be below $0.05 per transaction to be genuinely acceptable.

Ethereum’s High Fees Undermine Scalability

For a list of L2 protocols, Ryan had tweeted a screenshot of the relatively affordable gas prices required to bridge tokens to the ETH network. While both protocols’ transaction costs were far lower than ETH, Arbitrum One’s cost reached a high of 85 cents.

The Ethereum network is associated with high gas fees and a lack of scalability. In recent months, demand for block space on the Ethereum mainnet has risen, and gas fees have soared, limiting many users’ access to some of the most desirable Ethereum-based DeFi and NFT protocols.

Several network members have resorted to using Ethereum Layer-2 networks to reduce fees. These scaling solutions operate alongside the mainnet.

According to the list, the required gas fees were all less than $1, with Metis Network having the lowest at $0.02 and Arbitrum One having the highest at $0.85.

Although Ryan Adams believes these rates are low, Buterin believes they are not low enough. However, scalability concerns and expensive gas charges hampered the network’s progress.

There’s Been Substantial Progress in Lowering Gas Fees

In highlighting the progress in the direction toward sub-nickel transactions, Buterin noted proto-danksharding might be satisfactory in the meantime. He said, “But we’re making commendable progress, and proto-danksharding might be enough to get us there for the time being!”

“Blobs” of data, will be implemented and accepted as a new transaction and a part of Ethereum Upgrade Proposal-4844. The data blobs can be stored on Ethereum’s Beacon node for a limited time and use very little disk space when not in use by the Ethereum Virtual Machine. This approach might cut rollup fees by a factor of ten or more, “allowing Ethereum to stay competitive without losing decentralization.”

Ethereum Merge Delayed

The most widely used blockchain, which powers the second-largest crypto by market capitalization, is set for a long-awaited upgrade known as the “merge.” It’s supposed to make it more environmentally friendly and efficient, but there’s a lot of money on the line—its cryptocurrency, Ether, might overtake Bitcoin in terms of market capitalization.

The merge will convert Ethereum to proof of stake, allowing users to validate transactions based on how many coins they give to the network or stake. The merge, like EIP-4844, aims to assist Ethereum scaling solutions in lowering fees even more than they already do. Last month, the network announced that the ultimate upgrade, termed the Ethereum Merge, had been postponed.

Developers are still putting the merge through various trials. Following their most recent tests, they discovered several flaws that must be addressed before the upgrade.

Meanwhile, Ether [ETH], the Ethereum network’s native token, was in a modest downturn. The asset was trading for $2,815 at press time, down nearly 1% on the day.

Wayne Jones

Wayne is an all-rounded cryptocurrency writer who has written for several publications in the fintech industry. Having graduated from the University of Essex Colchester, he developed a passion for blockchain technology and has been curious about how the blockchain can modify the traditional financial industry.