Vitalik Buterin: Scaling Layer 1 Gas Limits By 10x Offers Significant Value
In Brief
Vitalik Buterin argues in his new article that increasing Layer 1 gas limits can simplify and enhance the security of app development, even if most apps are hosted on Layer 2 networks.
Ethereum co-founder Vitalik Buterin published an article discussing the reasons behind higher Layer 1 gas limits, even in an Ethereum ecosystem where Layer 2 solutions dominate.
An ongoing debate within the Ethereum roadmap centers on how much to raise the Layer 1 gas limit. Recently, the gas limit was increased from 30 million to 36 million, expanding capacity by 20%, and there is support for further increases. These increases are made feasible by recent and planned technological improvements, such as better efficiency in Ethereum clients, reduced storage requirements from EIP-4444, and eventual transitions to stateless clients.
However, before proceeding with these increases, Vitalik Buterin raises an important question: in the context of Ethereum’s rollup-centric roadmap, are higher Layer 1 gas limits truly beneficial in the long term? While gas limits are relatively easy to increase, they are difficult to reverse, and lowering them could have long-lasting consequences, particularly in terms of centralization.
He argues that increasing Layer 1 gas limits can simplify and enhance the security of application development, even if most applications are hosted on Layer 2 networks. However, Vitalik Buterin emphasizes that his goal is not to argue for or against the broader idea of hosting more applications on Layer 1, but rather to suggest that scaling Layer 1 by approximately 10x could provide long-term advantages, regardless of the outcome of that debate.
Vitalik Buterin Unveils Gas Requirements For Various Use Cases: Censorship Resistance, Asset Movement Between Layer 2 Networks, Layer 2 Mass Exits, And More
Vitalik Buterin analyzes several use cases to estimate Layer 1 gas requirements, and based on his calculations, he concludes that for censorship resistance, Layer 1 gas needs with current technology are less than 0.01x, while with more ideal technology, the requirements remain the same. To make Layer 1 gas affordable, he estimates the need to scale by approximately 4.5x. When analyzing cross-Layer 2 asset movements, Vitalik Buterin observes that gas requirements with current tech are about 278x, while ideal technology reduces it to 5.5x, and to remain affordable, the need is around 6x.
In the case of mass exits from Layer 2 networks, he suggests that with present-day technology, gas requirements could be anywhere from 3x to 117x, while with ideal technology, they range from 1x to 9x, and to keep it affordable, the needs could be between 1x and 16.8x. For ERC-20 token issuance, the gas requirement with current technology is less than 0.01x, the same as with ideal technology, but to be affordable, it could range from 1x to 18x.
Further considering keystore wallet operations and Layer 2 proof submissions, Vitalik Buterin calculates that for keystore wallets, gas requirements with current technology are about 3.3x, while with ideal tech, they reduce to 0.5x, and to remain affordable, the needs increase to approximately 1.1x. For Layer 2 network proof submissions, the figures are 4x with current technology, 0.08x with ideal technology, and around 10x to stay affordable.
Vitalik Buterin also notes that the Layer 1 gas needs with both current and ideal technologies are additive. For example, if keystore wallet operations consume half of the current gas capacity, there must be enough space left to handle a Layer 2 mass exit. Additionally, his cost-based estimates are approximate, and it is difficult to predict how gas prices will respond to changes in the gas limit, particularly in the long term. There is considerable uncertainty regarding how the fee market will evolve even under stable usage conditions.
Overall, the analysis suggests that there is significant value in scaling Layer 1 gas limits by about 10x, even in a world where Layer 2 networks dominate. This implies that short-term scaling of Layer 1 in the next 1-2 years would be beneficial, regardless of the long-term trajectory.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
