Vitalik Buterin Proposes New Changes to Ethereum Gas Rates

Co-founder of Ethereum Vitalik Buterin proposed a new “multi-dimensional” approach to gas rates this week. By charging different gas prices depending on the resource used, he believes that users will benefit from optimal gas costs.

Ethereum’s high gas fees have been a persistent problem since DeFi took off in the summer of 2020. And it’s not uncommon to hear people pay hundreds of dollars to use the network.

As expected, the uproar over this situation forced developers to act, and they did so with the release of EIP 1559, which went live on August 5, 2021.

EIP 1559 introduced several changes, but mainly sidelined the auction system in favor of a mobile base rate system. In other words, gas rates would not be driven by the highest bidders to have their transactions processed first.

Analysis of average gas rates in dollars shows June 2021 to August 2021 as a period of (relatively) low gas costs, hovering around $ 6 / $ 7. But after EIP 1559, gas rates skyrocketed, peaking at $ 62.84 on November 9, 2021. As of today, the average rate is $ 37.33.

Ethereum gas rates
Fountain: bitinfocharts.com

With that in mind, some would argue that EIP 1559 was a failure because the most important factor in determining gas rates is the capacity of the network (or the lack of it in this case), not the method used to attribute the cost of transaction of an individual user.

As such, will a “multidimensional” approach to the problem be different?

Ethereum Enhancement Proposal (EIP) 1559 was a failure?

Based on the gross numbers above, EIP 1559 did not reduce gas rates, so it was not successful in that regard.

But nevertheless, proponents of EIP 1559 say it never intended to lower gas rates, only to make rates more transparent and predictable.

The thinking here is that users would know in advance how much it would cost to make a transaction. That way, they could decide whether to go ahead or not.

Today, ConsenSys’ vision of a “world computer“On the Ethereum network it does not match the general user experience.

Some would argue that Ethereum is a victim of its own success and will eventually identify the gas tariff issue as a work in progress.

What is Buterin’s new “multidimensional” approach?

In another attempt to solve the problem, Buterin noted that different Ethereum Virtual Machine (EVM) resources have different gas usage demands.

Expanding further, it differentiates “burst capacity”, the amount of capacity we could handle for one or a few blocks, and “sustained capacity”, the amount of capacity we would be comfortable with for a long time.

“The scheme we have today, where all resources are combined into a single multidimensional resource (” gas “), does a poor job of handling these differences.”

The revised “multidimensional EIP 1559” would use a mathematical formula to adjust the relationship between blast and sustained capabilities. From there, Buterin presents two options:

The first is to calculate gas rates for resources by dividing the base rate for each resource unit by the total base rate. This would lead to a fixed base rate per block.

Alternatively, the base rate is set by resource usage, but incorporates burst limits on each resource. “Priority fees” would also be paid to the block producer.

Posted in: Ethereum, ETH 2.0

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Source: https://cryptoslate.com/vitalik-buterin-proposes-new-changes-to-ethereum-gas-fees/

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