- Ethereum co-founder Vitalik Buterin proposes a 33% gas limit increase to enhance network capacity, potentially reducing transaction costs.
- Current gas prices on Ethereum are around $1.89 per transaction, with higher costs for complex operations.
Ethereum co-founder Vitalik Buterin has recently proposed a notable change to the Ethereum network’s gas limit during a Reddit “ask-me-anything” (AMA) session organized by the Ethereum Foundation’s Research Team. Buterin suggests raising the gas limit from its current 30 million to 40 million, which represents a significant 33% increase. This proposal aims to address Ethereum’s evolving usage and adoption since its inception in 2015 and boost the network’s throughput.
A vital aspect of the Ethereum network is the gas limit, which denotes the maximum quantity of gas available in each block for transactions or smart contract executions. Block sizes are maintained by this important constraint, which hasn’t altered in almost three years, guaranteeing network synchronization and performance. As they build blocks, validators can adjust the gas limit within predetermined bounds, balancing network capacity and performance.
The Rationale Behind the Increase
Ethereum’s history since its founding in 2015, when the gas cap was roughly 3 million gas units, is considered in Vitalik Buterin’s proposal. This restriction has grown over time, and the current plan seeks to improve it further. More transactions can fit inside each block if the gas limit is increased to 40 million, which could increase the network’s overall capacity. This move is not without its difficulties, though, since it may put more strain on the hardware and provide new hazards like network spam and security threats.
According to etherscan.io, the average gas price for Ethereum users right now is about 35 gwei or $1.89 per transaction. Costs are higher for complex smart contract activities. Notably, gas prices have increased since the start of 2024, peaking at 150 gwei in May 2023. The passion for inscriptions is responsible for this spike, underscoring the necessity for the network to be both scalable and economical.
The Ongoing Scalability Debate
Vitalik Buterin’s suggestion rekindles the ongoing discussion about Ethereum’s and Bitcoin’s scalability. Users and developers are still eager to find solutions that balance network efficiency, capacity, and affordability, given the increase in network fees brought on by another round of inscription frenzy in November 2023.
Buterin’s proposal to raise the gas limit highlights the delicate balancing act Ethereum must perform as it grows in complexity and demand. 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 suggested increase in the gas limit would provide some relief by perhaps lowering prices, users should continue to exercise caution 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% as of this writing. 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.
