- Ethereum’s scalability relies on rollups and sharding to handle more transactions while maintaining decentralization and security.
- Ethereum Foundation (EF) researchers aim to reclaim Ethereum’s economic position through native rollups and expanding data availability for long-term scalability.
In a recent “Ask Me Anything” session on Reddit, leading researchers from the Ethereum Foundation (EF), including Vitalik Buterin, Justin Drake, and Dankrad Feist, gave insights into Ethereum’s future.
The session covered various topics, including the network’s scaling strategy, the role of rollups and sharding, and efforts to reclaim Ethereum’s economic dominance. As Ethereum’s technical plan progresses, these experts outlined key programs to address scaling challenges and strengthen the base layer’s revenue model.
As it grows, Ethereum’s scalability remains one of the network’s major issues. The Ethereum Foundation researchers focused on two solutions: rollups and sharding. Rollups, which process transactions off-chain, have been designed to reduce congestion and lower gas fees.
Sharding, on the other hand, divides the Ethereum network into smaller, more manageable parts, allowing the network to handle a higher volume of transactions at a time. These innovations are seen as major to Ethereum’s goal of maintaining decentralization while supporting increased user demand.
Buterin pointed out the importance of separating parts of Ethereum that can “ossify” from those that require ongoing evolution. This approach, he stated, is part of a broader strategy to address scalability more incrementally, with the eventual goal of reaching a more efficient, strong network.
Revenue Model and the Base Layer’s Role
While much of the focus in the Ethereum community has shifted to Layer 2 solutions, Ethereum’s base layer has been seeking ways to reclaim its economic importance. The EF researchers are working to ensure that Ethereum retains control over key aspects of its revenue model.
Buterin pointed out that the Ethereum Foundation aims for neutrality in the network, even as it faces competition from L2s. The move to strengthen the base layer’s position involves promoting “native rollups,” which could bring more revenue back to Ethereum.
One such step is doubling “blob” transactions per block from three to six. These blobs, introduced in Ethereum’s Dencun update, temporarily store data to reduce costs for Layer 2 solutions. This move aims to further solidify the base layer’s economic role by increasing data availability and reducing fees for Layer 2 platforms that rely on Ethereum’s infrastructure.
Data Availability and Long-Term Strategy
The EF researchers also discussed data availability (DA), a main factor in Ethereum’s future scalability. Drake and Feist both highlighted that demand for data availability is likely to increase as the network grows. Drake expects that within a decade, Ethereum could scale to process 10 million transactions per second (TPS). At even a small fee per transaction, this could result in billions of dollars of daily revenue.
To meet the increasing demand for data availability, Ethereum plans to scale its native DA capabilities. As reported by ETHNews, the researchers argue that alternatives like EigenDA, offered by platforms like EigenLayer, will not threaten Ethereum’s revenue model in the long term. As Ethereum’s network expands, new opportunities for data availability will emerge, allowing the network to benefit from a more diverse array of use cases.
However, while Ethereum’s scaling solutions remain a work in progress, the EF researchers remain positive about the network’s future. The focus has shifted towards gradual, incremental improvements, with native rollups as a potential cornerstone of Ethereum’s “endgame.” According to Drake, rollups that become native to the Ethereum blockchain represent a “strict improvement” for the network, providing better scalability without relying on external solutions.