What happened?
Ethereum co-founder Vitalik Buterin introduced Fusaka, Ethereum’s most ambitious scaling upgrade to date. Set to activate on December 3, the revolutionary technology eliminates the need for any single computer to download the entire blockchain data. This is achieved through the introduction of PeerDAS, which verifies information by checking small random pieces, rather than entire data blocks.
Who does this affect?
This affects all participants in the Ethereum network, as the upgrade allows for increased scalability while maintaining security. It targets the issue of network congestion and the criticism that Layer 2 solutions create fragmented user experiences. The upgrade could also potentially impact Ethereum’s revenue, which has been falling due to reduced base layer fee generation caused by Layer 2 adoption.
Why does this matter?
This upgrade matters significantly to the market as it presents a solution to concerns over Ethereum’s scalability and sustainability. Fusaka is expected to double blob capacity within two weeks, helping to alleviate current network congestion. It also marks a shift in how blockchain networks handle information, utilizing mathematical probability to verify data and subsequently improving the overall efficiency of the network.