Advertisement
AD

Main navigation

Vitalik Buterin Suggests New Fee Structure for Ethereum

Advertisement
Thu, 6/01/2022 - 12:20
Vitalik Buterin Suggests New Fee Structure for Ethereum
Cover image via www.youtube.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News
Contents
Advertisement

Vitalik Buterin has released an official suggestion of a new fee structure for the Ethereum network, called "multidimensional EIP-1559," referring to the previously implemented EIP-1559 upgrade.

The suggestion in a nutshell

Behind the technical lingo, the calculations and formulas are simple suggestions that might, in fact, change the way fees work on Ethereum: the different amounts of gas will be used for different operations on the network.

Today, Ethereum utilizes a scheme in which the same amount of gas is being used for different needs on the network. For example, average transaction data and calldata spend only 3% of the gas on a block, while a "worst-case" block contains 67x times more data.

Related

The usage of a single resource for both worst-case and average-case scenarios does not work optimally. Put simply: users of the Ethereum network pay more when they could pay less for an operation on the network.

The new fee concept will create a fair structure in which gas will be used more optimally, allowing users to spend less on various types of operations like minting, transactions calldata and more.

Ways of realization

Buterin has suggested two ways of realizing the new fee structure on the network: the gas execution cost remains fixed and the operating costs depend on the type of resource used divided on the base fee.

The second, "purer" option, according to Vitalik, requires the implementation of a fixed base fee and unlimited block gas. Priority fees paid to those who produce blocks on the network equals base fees plus a percentage.

In addition to a more sufficient fee structure, the update will add another layer of protection to the network.

Advertisement
TopCryptoNewsinYourMailbox
TopCryptoNewsinYourMailbox
Advertisement
Advertisement

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD