Vitalik Buterin Proposes 33% Increase in Ethereum Gas Limit to Enhance Network Throughput
Vitalik Buterin proposed adjusting the Ethereum gas limit to 40 million, a 33% increase to enhance the network’s throughput.
Co-founder of Ethereum (ETH) — Vitalik Buterin proposed adjusting the Ethereum gas limit to 40 million to enhance network throughput during the ask-me-anything (AMA) session hosted by the Ethereum Foundation’s research team on Reddit. Buterin highlighted that the gas limit has remained unchanged for nearly three years, marking the lengthiest period without an increase in the protocol’s history.
Buterin also indicated that this adjustment would result in an increase to approximately 40 million. Given the current gas limit of 30 million, Buterin proposes a 33% increase.
The Ethereum gas limit refers to the upper threshold for the amount of gas utilized in carrying out transactions or executing smart contracts within each block. Gas represents the fee necessary for completing a transaction or executing a contract on the blockchain.
A gas limit is established to prevent blocks from becoming excessively large, a situation that could adversely affect network performance and synchronization. Validators have the capability to dynamically adjust the gas limit within defined parameters while producing blocks.
Raising the gas limit enables a higher number of transactions to be included in each block, theoretically enhancing the overall throughput and capacity of the network. Nevertheless, it concurrently raises demands on hardware and introduces the potential risk of network spam and attacks.
Average gas prices, indicating the transaction costs on Ethereum, presently stand at approximately 35 gwei or $1.89. However, these prices have risen since the commencement of 2024, particularly for intricate smart contract operations.
Ethereum Reaches New Heights
Network gas fees reached a peak of 150 gwei in May 2023, primarily attributed to the surge in activity related to inscriptions. A gwei is a unit of Ethereum currency equivalent to one billionth of a single ETH.
Recently, Ethereum price surprised the market with a notable show of strength, surging from $2,444 on Jan. 10 to a year-to-date high of $2,644.45 today, reflecting a 24-hour increase exceeding 10%, as per OKX market data.
Analysts suggest that the price surge could be linked to preparations by market participants for the scheduled approval of a spot Ethereum ETF in May 2024, following successful approval of spot Bitcoin ETF earlier this week. This approval is expected to provide professional investors in the US with indirect exposure to Ethereum.
In proposing an increase in Ethereum’s gas limit, Vitalik Buterin aims to address the prolonged period of stagnation and potential scalability challenges, while recognizing the associated risks.
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