YEREVAN (CoinChapter.com) — At the Token2049 event in Singapore, Vitalik Buterin focused on Ethereum’s milestone in reducing transaction fees on Layer 2 (L2) networks. He discussed how Ethereum’s previously high fees affected its adoption. Buterin mentioned a time when he paid over $800 in gas fees for a single transaction. Today, thanks to Layer 2 solutions like Optimism and Arbitrum, fees have dropped significantly, often to under $0.01.
Vitalik Buterin at Token2049 Singapore. Source: Ethereum Daily
These improvements, according to Buterin, signal progress for Ethereum. The reduction in fees makes it more accessible for everyday use. He said,
“From being somewhere between $10 and $0.50 to being under $0.01, basically zero.”
This decrease is key for broader adoption in the crypto space.
Ethereum Layer 2 Networks Lower Costs and Improve Scalability
Ethereum’s mainnet has long been criticized for high gas fees, especially during times of congestion. At one point, transaction fees exceeded $200 for high-priority transactions. These high costs were a barrier to Ethereum’s scalability and wider use.
However, Layer 2 networks now help offload transactions from Ethereum’s mainnet, reducing both costs and congestion. Buterin emphasized that Layer 2 solutions are not only more affordable but also becoming more secure. He noted that rollups, such as Optimism and Arbitrum, are hitting significant security milestones.
The reduction in fees signals that Ethereum is becoming a more practical option for smaller, everyday transactions. This progress is vital for Ethereum’s goal of mainstream adoption.
The Merge and Improved Ethereum Confirmation Times
Another milestone Buterin discussed was the improved confirmation times on Ethereum. Thanks to The Merge, which transitioned Ethereum to a proof-of-stake network in September 2022, the average waiting time for transactions has been cut in half.
Before The Merge, Ethereum users experienced longer confirmation times. Now, according to Buterin, transactions are confirmed in as little as 5 to 15 seconds. This improvement makes Ethereum more efficient and easier to use in real-world applications.
These changes, combined with lower fees, have made the Ethereum network more scalable and user-friendly.
Vitalik Buterin Looks Back at Crypto-Themed Songs
In addition to technical discussions, Buterin took a moment to reminisce about crypto-themed songs. This lighthearted segment engaged the audience and reflected on the culture within the crypto community.
While the focus of his speech was on Ethereum’s advancements, this brief look at crypto’s past brought some entertainment to the event.
Vitalik Buterin’s Moment at Token2049. Source: @bitcoinwallah Vitalik Buterin Urges for Balance Between Decentralization and Adoption
Buterin also emphasized the importance of maintaining decentralization while pushing for mainstream adoption. He pointed out that the industry must strike a balance between fulfilling user needs and staying true to decentralized values.
“We need to satisfy the needs of mainstream adoption, and we need to hold on to open-source and decentralization values, at the same time,”
Buterin said.
Ethereum’s Price Falls After Buterin’s Speech at Token2049
Today, Ethereum’s price experienced a noticeable downturn, with trading data reflecting a decline after an initial peak. The price of Ethereum dropped to $2,301.43, marking a 0.53% decrease over the day. During this period, the cryptocurrency saw a substantial trading volume of $16,157,890,816, underscoring the market’s high activity level. This decline coincided with Vitalik Buterin’s appearance at Token2049 in Singapore. While the direct impact of Buterin’s speech on this price movement is uncertain, the correlation suggests that market reactions to his comments or other related developments might have influenced Ethereum’s trading dynamics today.
Ethereum Price Dip. Source: CoinMarketCap
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