Vitalik Buterin is the Ethereum co-founder, and his primary goal is to improve the network. Recently, Buterin discussed his new plans for the network, and they are impressive. So, this plan is about reducing high transaction fees on the Ethereum blockchain.
The Ethereum developers have tried to reduce gas fees, which is paying off. But their progress is relatively slow. One of the first major steps they took was changing the Ethereum network to proof-of-stake. Ethereum, like Bitcoin, was initially operating as a proof of work. But the Ethereum Merge seems not enough to reduce transaction fees. This new plan is powerful because it could minimize gas fees by nearly 100%.
Buterin Shows How Ethereum Transaction Fees Will Become 100x Cheaper
Vitalik Buterin shared more details about his plans to make transaction fees cheaper. The event where he spoke on this plan was the Ethereum Community Conference in Paris. According to the founder, the new Ethereum improvement proposal will solve many issues. And one of the issues is the high cost of transaction fees. Since users often complain about them, Buterin decided to take action. The overall summary of the plan is to reduce transaction fees. Another addition is to improve user experience.
A huge takeaway from Buterin’s plans is how straightforward it is. For instance, Buterin said there will be no changes to Ethereum’s underlying protocol. So, executing this plan won’t be as disruptive as the Ethereum Merge. Instead, it will only take a few steps to get it to work.
First, how Ethereum wallets operate will change. Buterin says it will now be easier to use the wallet. For instance, initiating actions like secret phrase recovery will be easier. For this to happen, an integration of Account Abstraction will take place.
Secondly, he said the Ethereum community will use programmable smart contract wallets. This type of wallet is also known as a non-custodial wallet. Using this wallet will contribute to reducing gas fees.
Transaction Fees to Drastically Decrease
Executing this proposal will bring one major change. Ethereum users will receive and send tokens without high transaction fees. To do this, Buterin proposes an infusion of account abstraction with “paymasters.” Paymasters allow crypto users to pay transaction fees using any token. In other words, Ethereum users won’t pay the high gas fees in ETH.
Note that the Ethereum improvement proposal will feature signature aggregators. Signature aggregators allow you to use multiple signers. Other benefits are more data compression, which translates to less costs. In other words, Vitalik Buterin says costs (gas fees) will reduce by nearly 100 percent.
Everything indicates Vitalik Buterin’s mind’s made up concerning his new proposal. If it becomes a reality, many things will change. One of the changes is users enjoying lesser Ethereum gas fees.
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