Vitalik Buterin recently came out and said Ethereum is “crazy strong,” shooting down rumors that the network’s been struggling. Instead, he pointed out a bunch of upgrades that prove Ethereum is actually doing awesome.
Dramatic drop in transaction fees
One of the major reasons Buterin sees Ethereum as “crazy strong” is the substantial reduction in transaction fees on Layer 2 (L2) solutions. These are secondary layers built on top of the Ethereum blockchain to handle transactions more efficiently. Fees on L2 solutions have decreased to under $0.01. This is a major improvement, making Ethereum transactions much cheaper for users.
Lower fees make Ethereum more accessible and competitive, attracting more users and applications to the network.
Significant improvements in Layer 2 solutions
Buterin highlighted the advancements in Ethereum’s Layer 2 solutions as a key factor in Ethereum’s strength. For example, Arbitrum, one of Ethereum’s Layer 2 solutions, saw its fees fall from over $0.50 in March to between $0.01 and $0.004 since mid-April. This drop in fees has occurred despite a high daily transaction volume, indicating that fee reductions are not due to a lack of activity. Similar fee reductions are seen across other Ethereum L2 solutions like Linea, Starknet, and zkSync Era.
Buterin pointed out the progress of Optimism and Arbitrum, both of which have reached important development stages. These platforms are essential for Ethereum’s scalability strategy. They provide faster and cheaper transactions while maintaining the security and decentralization of the main Ethereum network.
Reaching what Buterin calls “Stage 1” signifies that these platforms have made significant strides in their development and are integral to Ethereum’s growth.
Improvements in user experience, particularly in cross-L2 wallets, are another factor contributing to Ethereum’s strength. Cross-L2 wallets now require less manual intervention when switching between networks, making it easier for users to interact with Ethereum’s ecosystem.
Introduction of EIP-4844
The implementation of EIP-4844 (Ethereum Improvement Proposal 4844) is a crucial development that has contributed to Ethereum’s strong position.
EIP-4844 introduced “blobs” — dedicated block spaces for data sent from L2 blockchains. This innovation has significantly reduced transaction fees and improved the efficiency of the network.
Advancements in Zero-Knowledge (ZK) technology
The evolution of Zero-Knowledge (ZK) technology is a major advancement in Ethereum’s ecosystem. ZK technology, which allows for secure and private transactions, has become more advanced and accessible for decentralized application (dApp) developers.
New privacy solutions like 0xbow.io showcase Ethereum’s ongoing innovation in privacy and security.
Growing ecosystem
Finally, Buterin noted the growing ecosystem for identity, reputation, and credentials within Ethereum. This expanding ecosystem is seeing increased adoption and practical use, driving further growth.
Progress in STARKs (Scalable Transparent Argument of Knowledge) supports Ethereum’s long-term goals for security and decentralization.
In summary, Buterin’s view that Ethereum is “crazy strong” is supported by its improved transaction fees, advancements in Layer 2 solutions, successful implementation of EIP-4844, progress of key platforms like Optimism and Arbitrum, enhanced user experience, advancements in ZK technology, and the expanding ecosystem. These factors together illustrate Ethereum’s robust health and continued innovation.
Featured image credit: Eray Eliaçık/Bing
