Vitalik Buterin’s Vision: Lowering Ethereum Layer-2 Fees to Under $0.05

Vitalik’s Fee Vision

Ethereum co-founder Vitalik Buterin is on a mission—he wants to see layer-2 transaction fees drop to a whopping under $0.05 for users to consider it “truly acceptable.” This isn’t just a random number plucked from thin air; it reflects his long-standing belief that transactions on the blockchain should remain as affordable as your favorite cup of coffee, preferably less than the price of a candy bar.

The Layer-2 Landscape

Buterin made headlines after responding to a tweet from Ryan Sean Adams, a host for the Bankless podcast, who shared current average fees for various Ethereum layer-2 platforms. The standout? Metis Network, offering a deal that’s hard to beat at just $0.02 per transaction. Unfortunately, tokenize a swap here and you still might shed a tear—it’s $0.14.

• Loopring: $0.12 per transaction
• Aztec Network: A staggering $1.98

While these fees may seem manageable, it’s not exactly “Eureka!” moment for Buterin, especially with Ethereum’s layer-1 still boasting a modest $3.26 per transaction. Just wait for the next NFT drop from Yuga Labs—who needs roller coasters when you can experience heart-pounding fees of up to $14,000 per mint?

Buterin’s Historical Context

Buterin’s quest for low fees isn’t a new endeavor. In an interview back in 2017, he opined that “the internet of money should not cost more than 5 cents per transaction.” Fast forward to this year—he insists he still believes in that vision “100%.” That’s right, folks; time doesn’t appear to change everything!

“That was the goal in 2017, and it’s still the goal now.” – Vitalik Buterin

What is Proto-Danksharding?

Ah, the magic words: proto-danksharding. This proposed upgrade on Ethereum aims to tackle fees by introducing new transaction types called “blob-carrying transactions.” These special transactions contain an extra 125KB of data destined for the net but do not crash the Ethereum Virtual Machine (EVM).

By optimizing data bandwidth in this manner, validators can operate on a reduced scale—think 1 MB per slot instead of a full 16 MB. In layman’s terms, it’s like carrying around only what you need for a day trip instead of hauling your entire closet with you!

The Road Ahead

Ethereum’s roadmap, much like your favorite Netflix series, is ever-evolving. The long-awaited shard chains upgrade is projected for sometime in 2023. By horizontally distributing data across the network, Ethereum and its layer-2s hope to expand capacity without inflating fees—essentially throwing a big ol’ party for transactions while keeping costs down.

If this all sounds idealistic, well, keep an eye on that horizon—as we all know, in the blockchain world, nothing is ever set in stone. However, one thing’s for sure: Vitalik means business, and we’re all rooting for him.