By Alicia Maher
Vitalik Buterin released a proposal to improve the Ethereum network he prepared alongside Ansgar Dietrichs, a developer for Ethereum. The proposal was named EIP-4488. The plan intends to reduce gas fees of Layer 2 scaling solutions built on the Ethereum network. The proposal should provide a solution that works in the interim while they keep working on more comprehensive solutions.
How Will The Proposal Be Executed?
As stated above, the plan will attempt to solve the problem of high transaction fees in the short term. In recent times, Ethereum fees have been increased. Ethereum’s gas fees are now almost a thousand times more than that of Bitcoin. It is so high that scaling solutions that reduce the fees by various factors still end up with gas fees that people will think twice about paying.
The proposal intends to reduce layer two solution transaction fees in a couple of ways. Firstly, the plan involves reducing the cost of calldata. Calldata is the major framework behind many popular layer two protocols. Secondly, the proposal will also limit the number of transaction calldata stored in a block. Vitalik disclosed that block size could be increased without disrupting the network. He goes on to confirm that it is possible to increase the space apportioned for data.
Experts have said breaking down data into units to handle requests individually is being championed as the long-term salve to the current problems that exist. The proposal, albeit short-term, can reduce transaction fees before the year’s end. zkSync disclosed this in a tweet.
Buterin is pushing an Ethereum network that is centered around rollups. The idea is to tackle problems with gas fees in the short term. The push has made sure that Ethereum layer two protocols grow with the token.
Ethereum gas fees have put the network in disfavor with certain players recently. It has lost a couple of decentralized finance projects recently. Even a certain CEO came out to say he has abandoned the coin.
Ethereum Gas Fees Responsible For Failed Crowdfunding Constitution Auction Buy?
Ethereum transaction fees have been blamed for the failed attempt of the crowdfunded project ConstitutionDAO to purchase a copy of the United States Constitution. ConstitionDAO could not win a bid to get a copy of the United States Constitution from the 18th century. The DAO lost the bid to Ken Griffin.
The billionaire paid a little over $43 million, including auction fees for the constitution—more than twice the evaluated price. ConstitutionDAO was built on the Ethereum network, and in a bid to purchase the unique item that has only 12 other copies raised $47 million. The sum raised ended up not being enough to cover the cost to preserve and display the copy.
People have taken to Twitter to blame Ethereum transaction fees for the defeat. They believe that the gas fee paid by the over 17,000 contributors could have made the difference. Many had gas fees that made up to 50% of their intended contribution.