Vitalik Buterin recently emphasized the importance of reducing transaction fees in the Ethereum ecosystem at Token 2049 in Singapore, before reminiscing about iconic crypto-themed songs from the past.
In the context of the development of the cryptocurrency industry, he noted that high transaction fees were previously one of the major challenges hindering widespread adoption. However, transaction fees on the Ethereum Layer 2 (L2) network have dropped to “essentially zero,” marking a major milestone for cryptocurrencies.
“Transaction fees have dropped from $10-$0.50 to less than $0.01, essentially zero. At the same time, Optimism and Arbitrum, two major Ethereum Layer 2 , have achieved this important security milestone… As a result, rollups are rapidly becoming more secure and finally affordable.”
Ethereum Gas Price , or transaction fees, have previously spiked to over $200 for priority transactions during times of high network congestion. The L2 network is essential to help Ethereum cool down and become more scalable by moving some transactions from the mainnet to a secondary chain. Buterin has previously paid over $800 in Gas Price for a single transaction to protect privacy.
In addition to the reduction in L2 transaction fees, Ethereum's confirmation time has also been significantly improved. Specifically, transaction confirmation time has been optimized thanks to the Merge process, when Ethereum switches to a PoS network in September 2022.
“One of the things Merge has done is cut the Medium wait time until the next Block in half. Now, I can confirm transactions within 5 to 15 seconds.”
Looking ahead, Buterin stressed that the industry needs to meet the needs of mainstream users while remaining true to the spirit of decentralization.
“We need to strive for industry practicality while maintaining open source and decentralized values.”
Ultimately, Buterin called on industry participants to find practical solutions to foster the next wave of mass adoption without losing the industry’s Capital decentralization.
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According to Cointelegraph
