Quick Takeaways
- Ethereum has been criticized for its high transaction fees and Vitalik Buterin has finally devised a solution to combat this.
- The founder of Ethereum, Vitalik Buterin has proposed an EIP – Ethereum Improvement Proposal that will put a cap on the total gas limit on ETH.
- This EIP will not only make transacting on Ethereum less expensive but will also secure it from DoS attacks.
- A DoS – Denial Of Service attack happens when a hacker sends multiple requests to carry out any function on the network. This is done just to make the network unavailable or extremely congested.
Imagine paying a $100 transaction fee to send crypto from your crypto wallet to a receiver with an Ethereum address. Often this transaction fee is higher which is also why many users have moved to blockchains that are faster, cheaper and secure.
Vitalik Buterin – the brain behind Ethereum blockchain has authored EIP – 7983 along with researcher Toni Wahrstätter. This proposal will be implemented on the entire blockchain (protocol wide) for absolute decentralization, which happens to be the most important virtue of blockchain technology.
So Does ETH Transactions Will Cost 16.77 Million?
No, the improvement proposal devised by Buterin and Wahrstätter will cap the gas limit on Ethereum at 16.77 million gas units and not US Dollars. Essentially, this cap on gas limit will reduce the already high transaction costs by capping it to a number. Let’s understand this using a simple analogy. Imagine you take a bus from point A to point B and it costs you 10 dollars and the prices are hiked based on the demand. Now, if there is enough infrastructure to reduce this fee volatility then it is applied so that you as a commuter would still choose the same bus service. Similarly, on Ethereum the cap on this gas limit consumed will ensure that the users are not exploited and the cap will also restrict the DoS attackers from targeting the blockchain.
Vitalik Aims To Boost Ethereum With Simplification
The improvement proposal will not only make ETH transactions viable and secure but will also be compatible with advanced technologies like zero knowledge proof technology in blockchain.
Additionally, this improvement proposal implementation is not backward compatible. This means that the cap of 16.77 million gas limit cannot be undone. The term backward means going back and compatible means that the current update can work with the older operating system. Which will not be the case in EIP – 7983.
According to Buterin and Wahrstätter this number has been chosen after considering the level of complex transactions that take place on the Ethereum chain. Despite issues with high gas prices and security issues Ethereum has a market cap of ~ $308.03 billion.
