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Ethereum Developers Evaluate Reducing Data Transfer cost 5x, EIP 4488 Becomes Possible Solution

The second leading crypto asset ethereum has been dealing with high fees since the end of June and today the average ethereum transaction fee is between $5 and $34 per transfer. Although there have been many complaints about the high cost of ether gas this year, Vitalik Buterin, Ethereum founder, has suggested an Ethereum Improvement Proposal. This proposal aims to reduce transaction costs by five-fold. Tim Beiko, an Ethereum developer, also discussed the idea and discussed possible “challenges”, both short-term and long-term.

Moving Ether, Transferring an ERC20, and Swapping Tokens on Ethereum Is Costly — Tim Beiko Shares EIP-4488 Insights

Following the London upgrade during the first week of August, it was assumed that EIP-1559 would relieve at least some of the pressure. However, the average transaction network fee continued to rise after the London upgrade reaching, $62 per transfer on November 9. Today, ether gas cost is lower as bitinfocharts.com indicates the average ether fee is 0. 0083 ETH per transfer, or $34.09. The web portal l2fees.info shows an ETH transaction as low as $5. 77 per transfer, but the cost to move an ERC20 is $13. 20, and swapping ETH-based tokens can cost $28. 27 per swap.

On November 22, Bitcoin.com News reported on the arguments taking place on crypto forums and social media platforms like Twitter, between Ethereum and Avalanche advocates. Ethereum is facing stiff competition from blockchains such as Binance Smart Chain and Avalanche. Developers are being pushed to do more about high gas prices due to the high fees. On November 26, Ethereum developer Tim Beiko shared the most recent developer discussion and talked about an idea to lower the costs of rollups.

The gas costs have further pushed Ethereum co-founder Vitalik Buterin to propose leveraging an idea called EIP-4488. “Decrease transaction calldata gas cost, and add a limit of how much total transaction calldata can be in a block,” Buterin suggested on Github on November 24. Essentially, the solution could decrease data transaction costs significantly and estimates say gas cost could be reduced by five times. EIP-4488 leverages a scheme called “calldata,” which is utilized in L2 (layer 2) solutions such as Optimistic and ZK rollups. Beiko discussed the possibility solution in his Twitter thread.

“The cost of rollup txns is a function of the data they post back to the Ethereum mainnet,” Beiko said. Rollup transactions are cost-effective if a rollup compresses transactions and charges Y gas to send them to the mainnet. To do this, rollups add calldata to their transactions, which is currently priced at 16 gas per byte. If we reduce the calldata cost, then we reduce the cost of rollup transactions,” the programmer added. Beiko further stated that one of the challenges to the calldata solution is that it “influences the block sizes on Ethereum.” Beiko continued:

It’s literally data we add to each transaction. We can have larger blocks if we reduce the gas cost and maintain the same gas limit. This can cause problems in the long-term and short-term. It increases the worst-case block size in the short term. If, for example, calldata was 1 gas/byte, with a 30m gas block, you’d get a 30MB block (average right now is

EIP-4444, EIP-4490, and the Upcoming Arrow Glacier Upgrade

Currently, ethereum (ETH) users either are not transacting with ether at all, leveraging expensive L1 (layer 1) network fees, or they are utilizing rollup layer solutions. Loopring costs $0.01 per transfer. L2 solutions are cheaper than L1 fees. 25 per transfer. Polygon Hermez costs $0. 25, Zksync is around $0. 27, Optimism costs $2. 39 today, and transferring with Arbitrum One is $2.43. Beiko noted in a thread that L1 fees were very high, but L2 fees were quite expensive.

“Fees on Ethereum are *highand also aren’t trivial on rollups today (~3-4$ for a ETH send on ORs and ~0. 25c on ZKRs), so it’s worth thinking about the tradeoff more,” Beiko said. In addition to talking about EIP-4488, the software programmer also mentioned EIP-4444 (Bound Historical Data in Execution Clients) and EIP-4490. “Clients must stop serving historical headers, bodies, and receipts older than one year on the p2p layer,” the EIP-4444 description says. The EIP-4444 abstract summary adds:

Clients may locally prune this historical data — This change will result in less bandwidth usage on the network as clients adopt more lightweight sync strategies based on the PoS weak subjectivity assumption.

The Ethereum developer also posted information on Twitter about the December 8th Arrow Glacier upgrade. This upgrade aims to delay the network’s difficulty bomb. Open-source programmers are working to fix the network’s problems, but alternative blockchain networks are moving ahead.

What do you think about the recent solutions proposed to address the Ethereum network’s high transfer costs? Please comment below to let us know your thoughts on this topic.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or related to the use or reliance of any content, goods, or services in this article.

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Ethereum

Gensler Criticizes Crypto Exchanges for Questionable Practices, Says Spot ETH ETFs Will ‘Take Some Time’

SEC Chair Gensler has voiced concern over unethical conduct within crypto exchanges, noting that the introduction of spot Ethereum ETFs will require additional time.

Gensler’s comments were made during a June 5 interview on CNBC, where he also responded to Jim Cramer’s inquiries about potential exchange-traded products for cryptocurrencies beyond Bitcoin and Ethereum.

Gensler Criticizes Crypto Exchanges

Gensler stated that while the SEC had approved the associated 19-4b filings for spot Ethereum ETFs last month, the launch of these products would “take some time.”

He explained that the ETF applications are undergoing the normal procedural reviews, which inherently take time, but refrained from providing a specific timeline for their market debut.

However, Gensler soon turned his attention to the broader cryptocurrency market with a more critical perspective. He slammed the widespread unethical practices within crypto exchanges, stressing that the market is still plagued by fraud and manipulation.

“Crypto exchanges are engaging in practices that would never be allowed on the NYSE. Our laws don’t permit exchanges to trade against their customers, yet this is happening in the crypto space,” Gensler stated, drawing a line between crypto exchanges and traditional ones like the New York Stock Exchange.

Referencing recent high-profile failures like FTX and Celsius Network, Gensler stated that such illegal activities remain a big problem in the crypto market. He reaffirmed the SEC’s dedication to upholding market integrity through ongoing enforcement measures and highlighted the agency’s role as a civil law enforcement agency.

Gensler Highlights Regulatory Gaps in Crypto Market

While acknowledging some positive steps in regulation, Gensler voiced serious concerns about the inadequate disclosure and regulation in the cryptocurrency industry.

“These tokens, whether they’re well-known or obscure, have not provided the necessary disclosures required by law,” he noted, emphasizing that most cryptocurrencies do not meet the essential disclosure standards expected of regulated assets. This lack of transparency, Gensler argued, deprives investors of the crucial information needed to make informed decisions.

During the interview, Cramer also questioned Gensler about the possibility of ETFs for various lesser-known cryptocurrencies, including meme coins like SushiSwap (SUSHI) and Bonk (BONK), as well as other tokens such as Cardano, Cosmos, and MyNeighborAlice. Cramer pointed out that these tokens had traded millions of dollars in recent activity, asking whether they too should have their own ETFs.

While Gensler did not provide specific answers, he emphasized his stance on the inadequate disclosures of many crypto tokens, implying that these tokens are often unregistered securities.

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Ethereum

SEC Chair Gensler: Spot Ether ETFs ‘Will Take Some Time’ to Begin Trading

U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler has stated that spot ethereum exchange-traded funds (ETFs) “will take some time” to commence trading, highlighting the necessity for a thorough disclosure process. Additionally, Gensler emphasized the lack of proper disclosure provided by crypto exchanges to investors…
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Ethereum

Nibiru EVM to Transform Ethereum Capabilities for Tomorrow’s Web3

[PRESS RELEASE – Tortola, British Virgin Islands, June 5th, 2024]

Nibiru EVM execution boasts blazing-fast transaction speeds, scalability, and seamless integration for Ethereum developers, positioning Nibiru to drive mainstream adoption and innovation in Web3.

Overcoming Ethereum’s Scalability Hurdles

Nibiru Chain, a pioneering smart contract ecosystem, introduces Nibiru EVM, a high-performance Ethereum Virtual Machine (EVM) execution environment, showcased in its latest v2 release.

Nibiru plans to scale beyond Ethereum’s current infrastructure, which is limited to approximately 20 transactions per second (TPS) and results in high fees during periods of congestion. These constraints hinder developers from building performance-intensive applications similar to the ones seen in Web2. Nibiru EVM surpasses these limitations by offering throughput exceeding 10,000 TPS even with just single-threaded execution.

To take the scaling and performance a step further, Nibiru plans to upgrade the network to process transactions with parallel optimistic execution, which is “targeted for release before the end of 2024,” according to Co-Founder of Nibiru, Unique Divine. This approach allows nodes to utilize extra hardware resources, pushing the boundaries on the network’s transaction handling capabilities.

Fueling Ecosystem Expansion and Enhanced Developer Experience

“Compatibility with Ethereum is a key driver for attracting liquidity and promoting ecosystem growth on Nibiru EVM. Launching a blockchain protocol is about building trust and showcasing real-world utility. Innovating and improving the EVM is a key part of our strategy,” explains Unique.

With Ethereum developers accounting for applications that make up over 90% of the total value locked (TVL) across smart contract ecosystems, Nibiru EVM significantly lowers barriers to entry and accelerates development timelines.

Nibiru EVM empowers developers with a robust, user-friendly environment that enables seamless interaction between Ethereum-based tokens and applications across multiple virtual machines. This multi-VM approach ensures fast transaction processing and a streamlined user experience.

Ethereum developers are able to deploy applications in a familiar EVM environment, reducing barriers to entry and accelerating development timelines, whilst also reaping the benefits of parallel optimistic execution and instant finality.

Nibiru in Early Innings

Since its mainnet launch in March 2024, Nibiru has supported Wasm (Web Assembly) smart contracts written in the Rust programming language. The introduction of Nibiru EVM promises developers an EVM-compatible execution environment that is both highly performant and scalable. Positioned to play a crucial role in the future of decentralized applications, Nibiru is driving innovation and setting the stage for mainstream adoption.

About Nibiru

Users can stay up-to-date on the latest news or engage with Nibiru by visiting the Community Hub. Users can find the official web application and information on user guides, block explorers, and upcoming governance and improvement proposals.

Nibiru aims to be the most developer-friendly and user-friendly smart contract ecosystem, leading the charge toward mainstream Web3 adoption by innovating at each layer of the stack: dApp development, infra, consensus, a comprehensive dev toolkit, and value accrual.

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