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
- The long-awaited Ethereum merge will be delayed further as the transition to Proof of Stake will no longer happen in June but later than that with no confirmed date yet.
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.