Vitalik Buterin Proposes a Solution for High Gas Fees

by in Blockchain News

Vitalik Buterin EIP 4488

The Ethereum blockchain protocol faces issues of scalability and high costs. Vitalik Buterin, the co-founder of the ecosystem proposed a new way to face the challenges.

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Recently, he introduced the Ethereum Improvement Proposal (EIP) 4488, which suggests decreasing transaction calldata gas price and limiting the amount of entire transactions calldata per block. Buterin describes how to achieve a short-term enhancement for rollup capacity and decrease prices before layer 2 major solutions provide long-term answers.

According to Buterin, the EIP 4488 is a pragmatic path to unlock data space for rollups, which carry out transactions outside the main chain. It will increase data space to rollups to a maximum of around 1 MB per slot and reduce costs for rollups around 5 times.

Rollups are Layer 2 techniques, which aim to increase operational speed and reduce costs. Currently, the proposal is in the discussion phase.

Despite current challenges, Ethereum continues to be the leader by the number of projects based on it and the Total Value Locked in its smart contracts. According to data from the analytics platform DeFi LLama, presently, the number of protocols based on Ethereum is 315 and the TVL stands at above $170.3 billion.

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Currently, Ether trades at around $4.160 with a market cap of over $494 billion.