fbpx

Vitalik Buterin Addresses Ethereum’s Gas Challenges with “Multidimensional” Fee Structure

Despite having solidly planted itself as one of the best blockchains available today, Ethereum has not been able to overcome or outrun its lingering bane: outrageous gas fees on the network.

In steadily building towards its proof-of-stake transition, there has been a barrage of developments on the Ethereum network, with many looking to finally put an end to the gas crisis. On this note, Ethereum implemented EIP-1559 in August 2021, but it failed to meet expectations.

Buterin Proposes a Multidimensional EIP-1559

In the original EIP-1559 implemented on the Ethereum network, all resources are bundled into a “single multidimensional resource.” However, because different resources have different requirements, Ethereum gas fees are usually sub-optimal.

This happens because some resources require more processing power than others, these resources therefore naturally incur higher gas fees. However, because resources are all bundled together, smaller resources also ended up with exorbitant gas fees.

To solve this problem, Ethereum Co-Founder Vitalik Buterin has proposed an improvement to the network’s current pricing structure, a “Multidimensional EIP-1559.” 

Buterin laid out two options for the network. The first solution Buterin proposed involves calculating the gas cost for resources individually. This would be done by dividing the base fee for one unit of the resource by the base gas fee.

The second option would involve setting a base fee for using resources, however, burst (high demand) gas limits would be affixed to each resource, rather than having a base level, as in the first solution. Priority fees would also be based on a percentage instead of being fixed.

On the Flipside

  • There have been concerns about the implementation of a multidimensional fee structure on Ethereum as it is a “significant engineering undertaking.”

Why You Should Care

Fixing the challenge of gas fees on the network would be a major milestone for Ethereum as it prepares for its PoS transition

EMAIL NEWSLETTER

Join to get the flipside of crypto

Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

    You can always unsubscribe with just 1 click.

    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

    Rate This Article
    In order to improve, we give you the opportunity to rate DailyCoin content
    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.