EIP-4488: Vitalik Buterin Makes Proposal to Address Ethereum’s Transactional Costs

High transactional costs are always one of the biggest challenges Ethereum users are struggling to deal with.

The team and community have waited in expectation of Ethereum 2.0’s release as the ultimate solution for current issues with the system.

Despite all promises, data from crypto metrics site BitInfoCharts shows that the future outlook might not be as rosy as it’s going to be unless change is underway.

Ethereum’s Growing Problem

Up until now, high gas fees have remained a specific feature of the Ethereum network. According to statistical data from BitInfoCharts, the transaction fee reached $51.45 on average.

This unbelievable level was much higher than at the beginning of 2021.

Several scaling strategies have been developed in recent years to help reduce transaction costs.

Polygon was released in 2019 and is perhaps the first big Ethereum scaling solution. With Plasma, the network offloads transactions from the main Ethereum blockchain to a sidechain.

This year, Ethereum-based DeFi apps like Curve and Aave launched on Polygon.

Polygon’s inexpensive costs have attracted users, however it is often criticized for not being a proper scalable solution. Polygon employs a PoS consensus with its own set of validators.

That means that Polygon does not use Ethereum’s mainnet to validate transactions, so it is generally considered less secure and decentralized.

In an effort to optimize the gas fee and make it budget-friendly, Ethereum’s co-founder Vitalik Buterin made Ethereum Improvement Proposal, called EIP-488, as a way to reduce gas fees for Ethereum Layer-2 in the short term.

EIP-4488: Efficient But Temporary

Gas fees will continue to soar, especially when the demand for Ethereum is growing.
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Source: #Blockonomicom
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