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Vitalik Buterin Suggests Ethereum Gas Limit Increase – What’s The Impact?

On Wednesday, Ethereum Co-founder Vitalik Buterin proposed increasing the Ethereum network’s gas limit by 33%. This adjustment could enhance the network’s transaction capacity and potentially lower fees for end-users. However, it might also lead to higher operational costs for validators. 

 

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Buterin has drawn attention to a new Ethereum Improvement Proposal (EIP) called 7706. This proposal focuses on redesigning the gas model specifically for transaction call data within the Ethereum network. 

Ethereum blockchain users pay gas fees to ensure that their transactions are included in the network. The amount of gas that one pays for executing a transaction generally corresponds to its computational complexity; for example, a basic token swap incurs lower gas fees compared to initiating a complex lending position. 

Currently, Ethereum transactions involve two types of gas fees: one for transaction execution, covering the computational resources required for processing the transaction, and another for storage, indicating the cost of storing data within ‘blobs’. However, Buterin’s recent proposals aim to introduce a third gas category, primarily focusing on call data.

During a Reddit “Ask Me Anything” session with the Ethereum Foundation Research group, Buterin proposed the increase in gas.

In response to whether Ethereum could ‘safely increase’ its gas limit, Buterin stated, “The gas limit has not been increased for nearly three years, which is the longest time ever in the protocol’s history,”. He added that raising the gas limit to 40 million units from the current limit of 30 million units. 

Buterin’s primary initiative is to decrease transaction expenses linked to data-heavy transactions that may not be computationally intensive. If the proposal is approved, the Ethereum network will determine call data fees separately from other charges.

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Sophia Cruz
Financial Writer - Asian & European Desks
Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.
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