- Fusaka, Ethereum’s upgrade, launches December 3 to enhance scalability and security.
- PeerDAS lets Ethereum validators verify data using small chunks, not full data blocks.
- Fusaka doubles blob capacity, lowers transaction costs, and boosts Ethereum scalability.
Ethereum co-founder Vitalik Buterin has introduced Fusaka, a major scaling upgrade scheduled for release on December 3. This upgrade would enhance Ethereum’s scalability while preserving security. Its core feature PeerDAS (Peer Data Availability Sampling) allows Ethereum validators to verify data through small, random pieces, eliminating the need for any single computer to store complete blockchain data.
Fusaka tackles Ethereum’s congestion problems, with over 2 million ETH stuck in exit queues, facing delays of up to 43 days. In contrast, entry processing takes only seven days. The upgrade’s new approach would allow the Ethereum network to process more traffic, reducing delays and improving transaction speeds.
Fusaka Doubles Blob Capacity and Enhances Ethereum Data Verification
There are also major transformations in blob capacity as part of the upgrade. Within two short weeks, Fusaka would increase those caps from 6/9 blobs to 14/21. This transition would occur gradually, to help maintain stability and secure the network as it adjusts to the new system. It’s important to scale Ethereum’s base layer by increasing blob capacity.
Buterin’s design, enables validation nodes to check data via small random chunks of it. This process would prevent Ethereum’s network from becoming congested, which is a common problem for other existing blockchains that require every node to maintain full data. Validators do not immediately verify the availability of data, either, and rather use a probabilistic approach, which makes the network more efficient.
Fusaka also mentions the problem of fragmented user experience with these Layer 2 solutions. The upgrade is to enhance the efficiency and usability of Ethereum’s base layer. Reducing the dependence on Layer 2 solutions, Fusaka aspires to enhance the Ethereum experience for both users and developers, bridging a more cohesive ecosystem.
The phased implementation of Fusaka would be cautious. The first phase would involve conservative increases in blob capacity. As the network proves stable, future increases would become more aggressive. This gradual rollout ensures that the upgrade remains secure while achieving Ethereum’s ambitious scalability goals.
Fusaka comes at a time when Ethereum profit has drastically fallen. Revenue in August fell 44% to $14.1 million, even as it hit new ATHs above $4,950 for ETH. And this drop has led some to question the long-term viability of Ethereum’s economic model as Layer 2 networks decrease demand for transactions on the base layer.
Fusaka Brings DeFi Accessibility and Sustainable Revenue Solutions to Ethereum
Buterin has proposed that low-risk decentralized finance (DeFi) protocols could help to increase Ethereum’s revenue. These protocols, which can provide stable returns on blue-chip stablecoins, could potentially serve as a form of sustainable network income. By bridging entities such as Aave, users would finally be able to generate stable returns with USDT/USDC and less speculative risks for Ethereum’s ecosystem.
Beyond scalability, Fusaka is going to decrease transaction fees, which makes DeFi applications more generally available. High gas and transaction fees have deterred many users, but Fusaka’s fee reduction would make Ethereum more attractive and encourage greater adoption of DeFi.
Related: Ethereum Fusaka Upgrade Ushers in Automated Data Scaling
Ethereum Improvement Proposals (EIPs) are going to be critical for Fusaka’s success. These ideas address scalability, better use of node hardware resources, and autonomous blob parameter-only forks. Forks would be scheduled to turn on, meaning there is no need for individual network upgrades, making Ethereum more efficient.
Fusaka comes on the tail of the Pectra upgrade, which raised validator staking limits and also introduced account abstraction. With Fusaka, Ethereum is moving into the next stage of its evolution, which would boost data availability and scalability as well as allow more efficient use of network resources to maintain a competitive edge in an ever-changing blockchain industry.
