Ethereum activated the Fusaka upgrade today, reducing transaction costs on Layer-2 networks by approximately 40% to 60%. This significant improvement is expected to boost the adoption of decentralized applications and on-chain activities.
The upgrade introduces several key enhancements, including the implementation of PeerDAS. This new protocol allows validators to verify data through sampling methods instead of requiring them to download entire data batches. Consequently, this substantially lowers bandwidth consumption and makes the overall verification process more efficient for the network.
Additionally, the Fusaka upgrade increases the gas limit per block to 60 million. This expansion enhances the processing capacity of the main Ethereum chain, enabling it to handle more complex smart contract operations. As a direct result of these changes, transactions on popular Layer-2 scaling solutions such as Arbitrum, Optimism, and Base are now projected to cost mere cents, a notable reduction from the previous range of $0.10 to $0.50 per transaction.
Fusaka is live on Ethereum mainnet!– PeerDAS now unlocks 8x data throughput for rollups– UX improvements via the R1 curve & pre-confirmatons– Prep for scaling the L1 with gas limit increase & moreCommunity members will continue to monitor for issues over the next 24 hrs.
— Ethereum (@ethereum)
Impact on Decentralized Applications and Future Outlook
With the Fusaka upgrade now operational, the Ethereum developer community anticipates a surge in the adoption of decentralized applications (dApps), decentralized finance (DeFi) protocols, and various other on-chain activities. The reduction in transaction fees and the overall improvement in network performance are key drivers expected to facilitate this growth.
Looking ahead, the focus will be on how quickly the various Layer-2 networks integrate and leverage these new capabilities. The success of Fusaka will ultimately be measured by whether these advancements translate into tangible growth in user activity and liquidity across the Ethereum ecosystem.