What happened?
Ethereum Foundation researcher Dankrad Feist proposed a plan to exponentially increase Ethereum’s gas limit through EIP-9698. This proposal aims to raise the network’s capacity to handle around 2,000 transactions per second over two years by gradually increasing the gas limit by 100 times. The initiative is part of Ethereum’s ongoing efforts to improve scalability and better compete with high-throughput blockchains.
Who does this affect?
This development primarily affects Ethereum developers, node operators, and users relying on the Ethereum blockchain for transactions and smart contract functionality. Higher transaction capacity could benefit businesses and individuals by reducing network congestion and lowering transaction fees. Furthermore, it could influence competing blockchain networks by challenging their current market positions.
Why does this matter?
If successful, this proposal could significantly impact the market by enhancing Ethereum’s scalability, making it a more viable option for decentralized applications that require high transaction throughput. It positions Ethereum to compete more effectively with other high-capacity blockchains like Solana. Increased competition may drive innovation and improvements across the blockchain ecosystem, ultimately benefitting end users.