Despite solidly planting itself as one of the best blockchains today, Ethereum has not been able to overcome or outrun its bane, outrageous gas fees on the network.
Steadily building towards its proof-of-stake transition, there has been a barrage of developments on Ethereum, with many looking to finally put an end to the gas crisis. On this note, Ethereum implemented EIP-1559 in August 2021, but it failed to deliver.
Buterin Proposes a Multidimensional EIP-1559
On the original EIP-1559 implemented on the Ethereum network, all the resources are bundled into a “single multidimensional resource.” However, because different resources have different requirements, Ethereum gas fees are usually sub-optimal.
This happens because some resources require more processing power than others. Therefore, these resources would normally attract higher gas fees. However, because they are all bundled together, smaller resources end up with exorbitant gas fees.
To solve this problem, Ethereum’s co-founder – Vitalik Buterin – has proposed an improvement to the network’s current pricing structure, a “Multidimensional EIP-1559.”
Buterin lays out two options for the network. The first solution Buterin has proposed involves calculating the gas cost for resources individually. This would be done by dividing the base fee for one unit of the resource by the base gas fee.
The second option would involve setting a base fee for using resources; however, burst (high demands) gas limits would be included on each resource rather than fixed in the first solution. Priority fees would also be based on a percentage instead of being fixed.
On The Flipside
There have been concerns about implementing the multidimensional fee structure on Ethereum, as it is a “significant engineering undertaking.”Why You Should Care
Fixing the gas fee challenge on the network would be a major milestone for Ethereum as it prepares for its PoS transition.
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Gas Fees & Updates, Vitalik Buterin, Ethereum (ETH), Ethereum Gas Fees, vitalik buterinRead More
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