Aim to Reduce Network Congestion and Fees by Ethereum Co-Founder Vitalik Buterin

Developer Tim Beiko and co-founder of Ethereum, Vitalik Buterin have been exploring a suggested solution to the data transmission gas issue and existing scaling problems. “Blob-carrying transactions” could be added in a “near future hard fork,” according to Buterin.

What we call “Blob-Carrying Trades”

In the last two weeks, the price of ethereum (ETH) has climbed by more than 25%, continuing a trend of upward movement. ETH gained almost 16 percent last week, hitting the $3K per ETH threshold. Buterin shared a tweet written by Tim Beiko on February 4, 2022, proposing a new transaction structure for Ethereum.

It’s possible that “blob-carrying transactions” might be added to hard forks in the near future to boost rollups before they’re sharded, according to Buterin. A Reddit tutorial, written by one of Ethereum’s co-founders, explains how the network can grow. Further information is included in Buterin’s proposal:

‘[Blob-carrying transactions]’ contain a large amount of data that cannot be accessed by EVM execution, but whose commitment can be accessed. The format is intended to be fully compatible with the future Danksharding spec.

Shanghai hard fork could adopt the new ‘block carrying transactions.’ idea. As stated by Buterin, the new transaction type will be linked to the beacon block and consensus nodes.

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For now, this EIP implements the transaction format that would be used in sharding but doesn’t actually shard those transactions,” As noted in Buterin’s notes, The other co-founder of Ethereum said:

Instead, they would simply be part of the beacon block and would need to be downloaded by all consensus nodes (but can be deleted after only a relatively short delay). There would be a reduced cap on the number of these transactions that can be included, corresponding to a target of ~1 MB per block and a limit of ~2 MB.

In comparison to L2, Ethereum’s data transfer fees are still somewhat high.

On February 6, 2022, the average transaction cost will be 0.011 ether, or $31.99 USD. It costs between $4.59 and $7.87 to do a transaction on the ethereum network, or 0.0026 of an ether. Transacting with an ERC20 token requires more gas to move around than a traditional cryptocurrency. L2 transactions, of which Loopring is the most cost-effective, are less expensive than onchain L1 transfers.

Loopring presently charges $0.11 each transfer, while Zksync can cost as much as $0.17 every transaction.. L2 solutions such as Loopring, Zksync, Polygon Hermez, Optimism, Boba Network, and Arbitrum One are substantially cheaper than L1 transfers. According to the most recent suggestion, ‘blob-carrying transactions’ might reduce the chain’s congestion and expensive fees.

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