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For Layer-2 Transaction Fees to Be Truly Accepted, They Must Stay Under $0.05 – Vitalik Buterin

Vitalik Buterin, the co-founder of Ethereum, has noted that Layer-2 Ethereum transaction fees will only be “truly acceptable” if reduced to less than 5 cents. However, he stated progress is being made to make it happen.

Layer 2 Ethereum Needs Fees to Be Under $0.05

Ryan Sean Adams, a popular Bankless podcaster, shared a screenshot showing Layer 2 transaction fees that he tags as inexpensive. It includes Metis Network with a $0.85 fee, Loopring costing $0.12, ZKSync at $0.19, Polygon at $0.25, Boba Network at $0.48, and Optimism network at $0.57.

Responding to Adam’s tweet, Buterin, one of the most respected voices in the crypto space, said that Ethereum transaction fees need to be reduced to $0.05 to be truly accepted by the crypto community. 

He added that “we’re definitely making great progress, and even proto-danksharding may be enough to get us there for a while!”

Ethereum to Reduce Layer 1 Network Fees

The Proto-danksharding, also called EIP-4844 that Buterin mentioned, is an upgrade proposed recently to improve the blockchain network by providing a new simplified design that will organise large transactions into smaller ones.

In a blog post last month, Buterin mentioned the technicality and goals of the EIP-4844 upgrade. The upgrade is to happen in 2023 after the merge between Mainnet and Beacon Chain.

On The Flipside

Why You Should Care

If Buterin’s vision of higher utility and affordable gas fees pulls through, it could lure many developers and traders to the Ethereum network and increase the demand for ETH.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Author

Milko Trajcevski has been in the crypto world for years, and as such has gathered both a skill for writing as well as a native prowess when it comes to understanding everything that occurs within that world. Through skilled writing and determination, he covers articles about cryptocurrency, tokens, blockchain, crypto-asset regulations, crypto wallets, exchanges, liquidity, DApps, forks, mining, security, and blockchain technologies. He is a professional with a track record of proven expertise within the crypto space.