Galaxy Research, a subsidiary of Galaxy Digital Holdings, has been assessing the proposal to increase Ethereum’s gas limit. Since the beginning of the year, developers have advocated for this adjustment, claiming it essential for the network’s functionality. Vitalik Buterin, a co-founder of Ethereum, has shown support for a proposed 33% rise in the gas limit. Nevertheless, Galaxy Digital emphasizes the importance of further analysis before moving ahead with any modifications.
Can Ethereum Benefit from a Gas Limit Increase?
Christine Kim of Galaxy Research stated that the topic was a focal point at a recent Ethereum developer conference. Marek Moraczyński from Nethermind presented research that argued the increase is both warranted and safe for the Ethereum protocol.
Kim indicated, “The block gas limit will not affect the blockchain.” Numerous studies have pointed out that fears of system overload with a limit increase beyond 25% are unfounded.
Conversely, Christine Kim noted that the anticipated adjustment might not yield significant advantages for Ethereum, raising questions about its necessity.
How Does Layer 1 Competition Impact Ethereum?
In the last year, several Layer 1 blockchain networks have unveiled plans to enhance their platforms. Vitalik Buterin has shared insights on scaling Ethereum over the next decade.
Although Ethereum has maintained a leading position through layer-2 scaling solutions, competitors are also showcasing their capabilities. Cardano’s Hydra protocol has recently demonstrated impressive transaction volumes, achieving one million transactions per second in testing. If successful in real-world applications, this could position it as the fastest protocol available.
The competitive landscape is further complicated by other protocols like Solana, SUI Network, and XRP Ledger, which continue to exhibit their strengths.
Current evaluations suggest that while discussions about raising Ethereum’s gas limit persist, Galaxy Research has concluded that the timing is not conducive to implementing such a change.