The second major cryptoasset Ethereum has faced steep fees since late June and today, Ethereum’s average transaction fees are between $ 5 and $ 34 per transfer. While there have been many complaints about the costs of ether gas this year, Ethereum founder Vitalik Buterin has recommended an Ethereum Improvement Proposal (EIP) that aims to cut costs five times. transaction. Ethereum developer Tim Beiko also discussed the idea and spoke of possible long and short term “challenges”.
Moving Ether, Transferring an ERC20, and Trading Tokens on Ethereum Is Expensive – Tim Beiko Shares EIP-4488 Insights
After the London upgrade in the first week of August, it was speculated that the EIP-1559 would relieve at least some of the pressure. However, the average transaction network fees continued to rise after the London upgrade, reaching $ 62 per transfer on November 9. Today, the cost of ether gas is lower because bitinfocharts.com reports that the average ether charge is 0.0083 ETH per transfer, or $ 34.09. The l2fees.info web portal shows an ETH transaction as low as $ 5.77 per transfer, but the cost to move an ERC20 is $ 13.20, and trading ETH-based tokens can cost $ 28.27 per transfer. exchange.
On November 22, Bitcoin.com News reported on the disputes that were taking place on crypto forums and social media platforms like Twitter, between proponents of Ethereum and Avalanche. Ethereum faces stiff competition these days as blockchains like Binance Smart Chain, Avalanche, Terra, Solana, Harmony, Near, Fantom and many more have siphoned off users and use cases from ether. Now the high fees seem to be pushing developers to step up and do something about the high gas costs. On November 26, Ethereum developer Tim Beiko share the most recent discussion with the developers and talked about an idea to reduce the costs of rollups.
Gas costs further prompted Ethereum co-founder Vitalik Buterin to come up with leveraging an idea called EIP-4488. “Reduce the cost of transaction call data gas and add a limit on the total amount of transaction call data that can be in a block,” Buterin suggested on Github on Nov. 24. Essentially, the solution could significantly reduce data transaction costs and estimates say that the cost of gas could be reduced by five times. EIP-4488 exploits a scheme called “calldata”, which is used in L2 (Layer 2) solutions such as Optimistic and ZK rollups. Beiko discussed the possible solution in her Twitter thread on Friday.
“The cost of cumulative txns is a function of the data they send back to the Ethereum mainnet”, Beiko noted. “If a rollup compresses X transactions and pays gas fees Y to engage it on the main network, the cost of the rollup transactions is a function of Y / X. To do this, rollups add call data to their transactions, which are currently priced at 16 gases per byte. If we reduce the cost of call data, we reduce the cost of cumulative transactions, ”the programmer added. Beiko further stated that one of the challenges of the calldata solution is that it “influences the size of the blocks on Ethereum”. Beiko continued:
It’s literally data that we add to every transaction. If we lower the cost of gas and keep the same gas limit then we have bigger blocks, which can be problematic in the short and long term. In the short term, this increases the block size in the worst case. If, for example, the call data was 1 gas / byte, with a 30m gas block, you would get a 30MB block (the current average is
EIP-4444, EIP-4490 and the next Arrow Glacier upgrade
Currently, Ethereum (ETH) users either do not trade with Ether at all, exploiting expensive L1 (Layer 1) network fees, or they use stacking layer solutions. At the time of writing, L2 solutions are much cheaper than L1 fees, and the cost of sending Ethereum through Loopring can cost up to $ 0.25 per transfer. Polygon Hermez costs $ 0.25, Zksync costs around $ 0.27, Optimism costs $ 2.39 today, and transferring with Arbitrum One costs $ 2.43. Beiko’s thread noted that the L1 fees were high but the L2 fees were also quite expensive.
“The fees on Ethereum are * high * and also not trivial on stacks today (~ $ 3-4 for an ETH send on ORs and ~ 0.25c on ZKRs), so it’s worth the need to think more about the compromise “, Beiko noted. Besides talking about EIP-4488, the software programmer also mentioned EIP-4444 (Bound Historical Data in Execution Clients) and EIP-4490. “Customers should stop serving headers, bodies, and historical receipts older than one year on the p2p layer,” the EIP-4444 description states. The summary of the EIP-4444 abstract adds:
Customers can locally prune this historical data – This change will result in less use of network bandwidth as customers adopt leaner synchronization strategies based on the low subjectivity assumption of PoS.
The Ethereum developer’s Twitter feed also informed people of the upcoming Arrow Glacier upgrade on December 8, which aims to postpone the network difficulty bomb. As open source programmers prepare to fix network problems, alternative blockchain networks continue to follow Ethereum’s heels.
What do you think of the recent solutions proposed to deal with the high transfer costs of the Ethereum network? Let us know what you think of this topic in the comments section below.
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