Ethereum is set for a significant transformation with its upcoming Fusaka upgrade, scheduled to launch on December 3. This enhancement aims to bolster the network’s transaction capacity, allowing for improved scalability and efficiency in processing transactions.
In a recent developer call, Ethereum’s core developers confirmed the launch date, outlining various changes incorporated in the Fusaka upgrade. Similar to previous upgrades, Fusaka features a range of modifications designed to optimize the blockchain’s functionality. Despite being the leading network in decentralized finance (DeFi), where users engage in cryptocurrency exchanges and lending without intermediaries, Ethereum has faced constraints on its transaction capacity. This limitation is primarily implemented to safeguard against potential network misuse, among other reasons.
Currently, Ethereum manages over $132 billion in deposits related to DeFi protocols, significantly outpacing its closest competitor, Solana, by nearly ninefold, according to data from DefiLlama. The Fusaka upgrade promises to expand this transaction capacity while ensuring the essential principles of security and decentralization remain intact.
A key highlight of the Fusaka upgrade is the introduction of peer data availability sampling, known as PeerDAS. This innovation enhances the volume of data that layer 2 solutions—secondary blockchains operating atop Ethereum—can submit to the main network for validation. Currently, Ethereum nodes must maintain a complete record of the data submitted by these layer 2s, which can become overwhelming as traffic increases. PeerDAS will reduce the storage requirements for nodes to just one-eighth of what is currently necessary, theoretically enabling an eight-fold increase in transaction throughput. Additionally, Fusaka is setting the stage for a potential increase in the block gas limit, allowing the network to accommodate more transactions within each block.
The upgrade will also introduce a code update aimed at synchronizing Ethereum clients, the software components connecting users’ computers to the Ethereum network. This adjustment could potentially facilitate a 233% increase in transaction limits, though it comes with cautionary measures in place to mitigate adverse effects associated with higher gas limits. These may include heightened vulnerability to denial-of-service attacks and accelerated growth of the blockchain’s state, which could impact decentralization.
Ethereum is not alone in exploring scalability through gas limit adjustments. Developers at Polygon, another blockchain compatible with Ethereum, are planning a 33% increase to its own gas limit to enhance transaction capacity.
In preparation for the Fusaka upgrade, the Ethereum Foundation, a nonprofit organization dedicated to supporting the blockchain’s development, is hosting an audit contest offering up to $2 million to security researchers who identify vulnerabilities or bugs in the upgrade’s code before its implementation on the mainnet. The developers intend to thoroughly test the Fusaka upgrade on the Holesky testnet starting October 1, ensuring a robust and secure transition.
