What is the next step for Ethereum?
BTC and ETH are $68k each today. Last time Bitcoin was this high was November 2021 when ETH ranged around $4K.
The gas fee for Ethereum was 130 gwei on average (instead of 27 gwei now). This led to public statements that Ethereum was a scam. “abandon” Ethereum for the alt-L1 chains then — remember “FOAN”?
In those days, you could count each rollup. L2Beat reports that there are currently at least 105 rolling transactions, with a total volume of 296 transactions per sec.
Ethereum L1’s TPS is about 13. This represents a 2x improvement over three years ago. That’s a lot of progress.
Rollup-as a-service providers like Caldera and Conduit have made it easy and affordable to create these rollups.
Second, the growth of other data-availability solutions such as Celestia and the EIP 4844 Dencun update in March 2024. The latter offered L2s rollups a cheaper way to post their batched data to the L1 — about 10x cheaper in cost savings.
All is going well. The roadmap says that Ethereum will reach 100k TPS by the endgame. “Surge” phase.
To make this happen, there is still much to do.
PeerDAS, or peer data sampling (sampling data between peers), is a must for Ethereum in order to scale the data available. PeerDAS takes some key ideas from BitTorrent peer-to-peer files sharing. It distributes broken data pieces between Ethereum validator-nodes in order to scale data availability.
Data compression is used to reduce the size of transactions, so that an ERC-20 transaction would only take up 30 bytes of data (compared with 180 bytes currently).
This can be achieved by aggregating several signatures into one that verifies against multiple public keys at once, using the BLS (Boneh-Lynn-Shacham) digital signature scheme — not currently possible on ECDSA (Elliptic Curve Digital Signature Algorithm) signatures today.
Next is the use of plasma, a scaling solution wherein blocks are published off-chain with Merkle roots of those blocks placed onchain — a vast computational improvement over today’s rollups, where full blocks are submitted onchain, or via validiums.
Just for the L2s. For the L1, the execution must continue to scale, either through increasing the gas limit of L1 blocks or by introducing incremental upgrades that make the EVM gas-efficient. The EVM Object Format bytecode or parallelized data, computation and storage markets (i.e. a multidimensional pricing) are two methods that can be used.
This ensures that the L1 doesn’t become an a “ghost chain” Only used to settle and distribute DA. Ethereum, according to Vitalik, is still a currency. “needs to be powerful enough to be able to at least occasionally actually handle a highly complex and chaotic wind-down of an L2,” Why the “long-run security of the network” matters.
The UX will also be improved, with cross-chain compatibility being addressed so Ethereum isn’t like 100 different chains. By developing ERC standards such as ERC7683 and involving dozens of players, this is being addressed at the protocol-level. “shared sequencing” You can also find out more about the following: “chain abstraction” areas.
All these roadmap features must be accomplished while preserving decentralization, which entails pushing L2s toward active proof systems that are trustless — and keeping an eye on centralization around the MEV layer.
Chart of the Day
Solana’s Memecoin Fever:
Memecoin volumes are reaching all-time records in comparison to DEX volume on Solana. About $15.4 million of trading volume came from the memecoin market in the last seven days, compared to a total trading activity on DEX that was $19.8 millions. Pump.fun, a maker of memecoins, saw its largest ever deployment on Saturday: 31,615 coins.
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