Buterin says only Ethereum fees are 'really acceptable' under $0.05

Buterin says only Ethereum fees are ‘really acceptable’ under $0.05

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  • Today, Vitalik Buterin wrote that Ethereum fees will not be “really acceptable” until below $0.05.
  • He highlighted the development of proto-danksharding (EIP-4844) to help reach this goal.
  • Ethereum scaling solutions (such as Layer 2) will likely be key to Ethereum’s competitiveness for years to come.

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Vitalik Buterin said that fees on Ethereum will only be “really acceptable” if they are lowered to less than five cents. But he highlighted the progress that has been made to that end.

Buterin sets the standard

The co-founder of Ethereum and one of the most beloved voices in the crypto space has set an ambitious fee target on the Ethereum network.

Today, Ryan Sean Adams of the popular podcast Bankless subscriber Screenshot of fees on various Ethereum scaling solutions I used these relatively low fees to claim that Ethereum is inexpensive. Vitalik Buterin replied Somewhat questionable:

“It needs less than $0.05 IMO to be really acceptable. But we are definitely making great progress, and even the initial sharing might be enough to get us there for a while!”

The screenshot shows the fees (for the relatively inexpensive type of transaction to send ETH) ranging from 2 cents (for the bullish Layer 2 network Metis) to $0.85 (for the bullish Arbitrum One pool). In the middle came Loopring at $0.12, ZKSync at $0.19, Polygon at $0.25, Boba Network at $0.48, and Optimism at $0.57.

Buterin noted the progress made on the road to the coefficients of the two nickel subgrades, and mentioned how the initial sharing of the graph might suffice for some time. As part of the Ethereum Improvement Prosoal-4844, “blobs” of data, a new transaction type, will be presented and accepted. Large data points can be held on an Ethereum beacon node for a short time, and require little disk space without the need to implement an Ethereum Virtual Machine. This improvement proposal could reduce pooling fees by a factor of 10 or more, “and enable Ethereum to remain competitive without sacrificing decentralization.”

The recently delayed integration of Ethereum with Proof-of-Stake will facilitate hashing, as the Ethereum chain can be split into synchronous chains, and this should help Ethereum scaling solutions quickly scale new capabilities. However, this is likely to happen in the far future, so Ethereum will rely on scaling solutions (such as pools) at least in the medium term. To this end, Buterin proposed the EIP-4488 last November. Like the EIP-4844, it aims to help Ethereum scaling solutions lower fees more than they already do.

The issue of fees on Ethereum was front and center last weekend in one of the most significant drops in NFT history – Yuga Labs’ NFT drop of $310 million. Those trying to get a non-fungible token have spent more than 60,000 ETH (worth around $165 million) on fees, although this is partly due to the Yuga Labs by-token.

Disclosure: At the time of writing, the author of this article owns BTC, ETH, and many other cryptocurrencies.

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