vitalik buterin fees proposes eip to

In addition to that, he proposes adding “priority fees,” which would be set as a percentage, and calculated by multiplying the base fee and the percentage.

Buterin recognized that his multidimensional fee structure solutions are not perfect. He even pointed out the drawbacks himself, noting that the biggest issue would be that block builders would not be able to accept transactions as they did so far, sorting them out according to the size of the fee. Instead, they would have to balance the dimensions and solve more mathematical problems.

For the time being, the Ethereum network is prioritizing the next big upgrade, so the stance towards the new proposal is not yet clear. The next move for the network is the so-called “merge” where Ethereum’s blockchain sill dock with the Beacon Chain, and put a permanent end to the use of the Proof-of-Work.

Since Ethereum can only process 15 transactions per second, gas fees tend to spike at times of network congestion. On November 9, the average transaction network fee reached USD 62 per transaction. As of now, Ethereum transactions cost around USD 44, according to BitInfoCharts.

After highlighting concerns regarding the transaction fees on the Ethereum network, Buterin suggested the new EIP-4488, saying that it would “decrease transaction calldata gas cost, and add a limit of how much total transaction calldata can be in a block.”

In other words, EIP-4488 would limit the total transaction calldata, where data from external calls to functions are stored, before reducing the calldata gas cost to remove the possibility of breaking the network.

“Simply decreasing the calldata gas cost from 16 to 3 would increase the maximum block size to 10M bytes.

But, to put it simply, Ethereum’s co-founder actually proposed two potential solutions that could be introduced through the use of “multidimensional pricing,” as he called it.

Buterin proposes two solutions

The first of the two options that Buterin came up with is to calculate the gas cost for resources by dividing the base fee for every unit of resources being used by the total base fee. The base fee itself is a fixed fee that already exists in the EIP-1559 algorithm.

Alternatively, his second solution is arguably a more complex one. This option proposes setting a base fee for using resources, but it also includes burst limits on every individual resource.


Vitalik Butering has released an official suggestion of a new fee structure for the Ethereum network, called “multidimensional EIP-1559,” referring to the previously implemented EIP-1559 upgrade.

The suggestion in a nutshell

Behind the technical lingo, the calculations and formulas are simple suggestions that might, in fact, change the way fees work on Ethereum: the different amounts of gas will be used for different operations on the network.

Today, Ethereum utilizes a scheme in which the same amount of gas is being used for different needs on the network. For example, average transaction data and calldata spend only 3% of the gas on a block, while a “worst-case” block contains 67x times more data.

The usage of a single resource for both worst-case and average-case scenarios does not work optimally.

Ethereum price set to explode with new upgrades in the network

Ethereum co-founder Vitalik Buterin recently put forth a proposal to reduce the transaction fees on the ETH network by five times. Ethereum Improvement Proposal (EIP)-4488 is Buterin’s idea to leverage the network and decrease transaction calldata.

Buterin said,

Decrease transaction calldata gas cost, and add a limit of how much total transaction calldata can be in a block.

On November 24, Buterin pushed the proposal forward on Github. The solution will decrease the transaction cost significantly, as much as five times.

Currently, rollups like Optimistic use the scheme “calldata.”

Tim Beiko, a core developer at the Ethereum network, discussed the possible solutions to tackle Ethereum’s high transaction cost in a thread on Twitter.


To tackle this issue, he suggested EIP-4488, claiming that it could “decrease transaction calldata gas cost, and add a limit of how much total transaction calldata can be in a block.”

Scalability is a core problem with Ethereum, which is now home to thousands of decentralized apps (Dapps) but can only process 15 transactions per second. Therefore, fees spike to insane levels at times of high network congestion, which describes why $40 transaction fees have been frequent for the last couple of weeks.

According to data by BitInfoCharts, Ethereum’s average transaction was over $62 on November 9. As of now, the average transaction fee is more than $44, which makes the network too expensive for the mainstream.

Buterin noted that an alternative method to the proposed EIP-4488 update could be simply reducing the calldata gas cost.

Reading Time:2minutes

  • Vitalik Buterin has proposed a new Ethereum Improvement Proposal (EIP) to address the network’s high gas fee problem.
  • EIP-4488 aims to add a new limit on the total transaction calldata to reduce transaction costs.
  • Some Ethereum devs warn about the far-reaching consequences of the new update.

Vitalik Buterin has proposed a new Ethereum Improvement Proposal (EIP) to address the network’s high gas fee problem.

Buterin, a Russian-Canadian programmer who co-founded Ethereum back in 2015, has put forward EIP-4488, which aims to add a new limit on the total transaction calldata, where data from external calls to functions are stored, to reduce transaction costs.

On November 24, Buterin took it to GitHub to express his concerns regarding the recent insane transaction costs on the Ethereum network.

Some examples include witness data storage, block data storage, block state size changes, and alike.

The problem with the current gas fee structure is that it does a poor job when it comes to noticing and handling these differences. All resources are combined into a single multidimensional resource that is known as ‘gas,’ and the differences are not being taken into account when calculating the gas fee.

If all the different resources are channeled into a single one, then the resulting gas costs end up being rather sub-optimal. Buterin thinks that addressing this issue could help change things for the better, and so he proposed a rather complex solution in his proposal.

However, he warned that without putting a limit on the total transaction calldata, there would be the possibility of breaking the network. He said:

Simply decreasing the calldata gas cost from 16 to 3 would increase the maximum block size to 10M bytes. This would push the Ethereum p2p [peer-to-peer] networking layer to unprecedented levels of strain and risk breaking the network; some previous live tests of ~500 kB blocks a few years ago had already taken down a few bootstrap nodes.

Meanwhile, blockchain analysis firm BitMEX Research anticipates the update to reduce data transaction costs by around five times.
“This is part of the process to lower the gas cost of data by around 5 times, to make rollups cheaper,” BitMEX tweeted.

Some think layer 2 fees on ETH are too high, because each byte of data a rollup uses cost 16 gas.

Buterin proposes a multidimensional EIP-1559 implementation.

The solution makes “gas” synonymous with “Ethereum” and ensures a reduction in transaction costs. Buterin has proposed two centralized and decentralized alternatives for tackling multidimensional EIP-1559.

The founder of the Ethereum Network told Bankless in an interview that the altcoin is halfway towards its “Grand Vision.”

Since the implementation of EIP-1559, over 1.36 million ETH tokens have been out of circulation, driving a shortage in Ethereum supply. This has fueled a bullish narrative for Ethereum price.

Data from IntoTheBlock suggests that yesterday, January 5, 2022, was the lowest issuance of the altcoin in over a month, 1,350.

Mark Cullen, a crypto analyst and trader, has evaluated the Ethereum price trend and predicted that the altcoin could get back above $4400.

Put simply: users of the Ethereum network pay more when they could pay less for an operation on the network.

The new fee concept will create a fair structure in which gas will be used more optimally, allowing users to spend less on various types of operations like minting, transactions calldata and more.

Ways of realization

Buterin has suggested two ways of realizing the new fee structure on the network: the gas execution cost remains fixed and the operating costs depend on the type of resource used divided on the base fee.

The second, “purer” option, according to Vitalik, requires the implementation of a fixed base fee and unlimited block gas.

TL; DR】1. EIP-4844 is expected to reduce the storage and memory performance requirements of the Ethereum network, and may reduce all Roll-up fees by ~100x compared to the current level.

2. Vitalik proposed to use the new Proto-danksharding to replace danksharding as a brand-new sharding design of Ethereum.

3. Blob carrying transactions is a new transaction form previously proposed by Vitalik, which can greatly reduce the consumption of data and Roll-up.

4.
Under Danksharding’s design, the sharding system is greatly simplified. Layer1 and roll-up can be synchronized directly. The data capacity provided by slicing for Roll-up processing will be larger, and the problem of delayed confirmation will be avoided.

5.

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