• Ethereum is introducing a new transaction format in order to reduce gas fees

  • Ethereum co-founder Vitalik Buterin recently mentioned a near-future hard fork that could provide enhanced scalability to rollups before full sharding is finished in a tweet.

    According to JP Morgan strategists in an early January research, the last step of sharding, which is important for network scaling, may not take place until 2023. Full scaling appears to require at least a year, implying that it will take some time.

    According to a new Ethereum note published by Tim Beiko, an Ethereum developer, transaction costs on Ethereum L1 have been extremely high for months, and there is a greater need to do whatever it takes to promote an ecosystem-wide migration to rollups.

    Rollups are expected to be Ethereum’s sole trustless scaling solution in the short and medium term, and possibly in the long run. Although rollups significantly reduce fees for many Ethereum users, these pricing may appear unreasonably expensive to the ordinary ETH user.

    Surprisingly, Optimism and Arbitrum rollups frequently provide fees that are nearly 3-8 times lower than the Ethereum base layer itself, while ZK rollups, which have greater data compression and can skip incorporating signatures, have fees that are nearly 40-100 times lower.

    Buterin argues that a near-future hard fork introducing “blob-carrying transactions” to boost rollup scalability is already in the works. This EIP would provide a stop-gap solution until the transaction format would be used in sharding by implementing the transaction format but not actually sharding the transactions.

    This gives rollups temporary scaling relief by allowing them to scale up to 2 MB per slot, with a separate fee market keeping prices low while use is limited.

    The long-term solution and sharding

    Data sharding, which would add over 16 MB of dedicated data space to the chain for rollups to use, has always been Ethereum’s long-term solution to rollups’ long-term inadequacies.

    Data sharding, on the other hand, will be difficult to implement and distribute.

    Sharding has been an idea since the founding of Ethereum in 2013, and it is planned to be deployed as part of the current proof-of-stake update.

    What's your reaction?