Ethereum’s Buterin Proposes Multidimensional Structure to Address High Gas Fees

The history of Ethereum transaction fees was the topic of discussion in 2021, with the peak recorded in May 2021. Although the current ETH gas fee has decreased, compared to the peak last year, the fee remains a big issue in the crypto community.

Finding a proper solution to address the issue is always a headache, particularly with Vitalik Buterin, Ether’s co-creator. The co-founder made a couple of proposals last year, highlighting scalability and gas fee improvement.

Buterin Sees the Problem of High Gas

During the month of November 2021, Vitalik Buterin and Ethereum developer Ansgar Dietrichs released a new Ethereum Improvement Proposal (Ethereum Improvement Proposal) dubbed EIP-4488 as a temporary solution to reduce the amount of gas used by Layer 2 scaling solutions on the Ethereum blockchain.

This output aims to reduce the high cost of natural gas while waiting for more powerful options to become available.

Buterin is striving for a better Ethereum network as previously this week, he proposed a new direction, called “Multidimensional EIP-1559.”

So what is EIP-1559 about?

According to details in Ethereum co-founder’s blog post, each different resource within the Ethereum Virtual Machine (EVM) requires different gas consumption.

It is possible to simplify the existing fee structure for Ethereum by calculating different gas costs based on varied resource usage.

Changes are Needed

Currently, Ethereum employs a mechanism in which the same amount of gas is used for a variety of purposes across the network.

To wit,

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

Using a single resource for both the worst-case scenario and the average-case scenario does not yield the best results. Simply put, users of the Ethereum network are obliged to pay more for an activity on the network when they could be charged less.

The new fee structure will establish a fair framework in which gas fees will be used more efficiently, allowing users to spend less money on a variety of activities such as minting, calldata transactions, and other activities that involve.

Buterin proposed two techniques to introduce multidimensional EIP-1559 in his proposal. Gas prices for resources like Calldata and storage consumption, on the other hand, will be calculated by dividing the basic charge by one resource unit divided by the base fee.

As an alternative, setting a base cost for resource usage at a fixed amount, such as 1 Gwei, would be more challenging.




Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Mandatory margin?! Featuring derivatives contracts

NGK takes you in-depth analysis of the advantages and disadvantages of each project

This is When Bitcoin (BTC) Price Will Hit $750m Marketcap Surging Above $100k

Ethereum Co-founder Buys an NFT from Bored Ape Chemistry Club for $3.6 Million

Ethereum Co-founder Buys an NFT from Bored Ape Chemistry Club for $3.6 Million

Employing double spending to eradictate poverty forever

Cardax: Strives To Take Advantage Of Cardano ERC-20 Converter

Cardax: Strives To Take Advantage Of Cardano ERC-20 Converter

Two more backers join the Acta Finance Walk of Fame!

Whales are Accumulating These Altcoins While Crypto Market Consolidates

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store

More from Medium

Announcing the $DVN Token

CoinPanel x Huobi integration: Get a chance to win $10,000!

Smart Contract; How can a GXG Token apply smart contract to run its liquidity pool?

NPHL #2022