Ethereum Co-founder Vitalik Buterin Recommended New Fee Structure

Ethereum (ETH) Price Breaks Key Support as Bears Continue to Dominate
  • Vitalik Buterin has recommended a new way to pay users on Ethereum.
  • It will create a fair structure in which gas will be utilized more optimally.
  • A more sufficient and friendly price structure will help the network to grow.

The Co-founder of Ethereum and Russian Canadian programmer, Vitalik Buterin has recommended a new way to pay users on the Ethereum network. Ethereum co-founder Vitalik Buterin has launched an official proposal for a new Ethereum pricing structure, which is referred to as Multidimensional EIP-1559, referencing the previously implemented EIP-1559 upgrade

According to the Vitalik Buterin new payment structure proposal, behind the technical jargon, calculations and formulas are just a simple suggestion that could, even the changes in fees will work on Ethereum, different amounts of gas will be utilized for different operations on the Teherum network.

Furthermore, currently, the Ethereum blockchain utilizes a pattern in which the same amount of gas is used for different needs on the network. Such as average transaction data and call data only spend 3% of the gas on a block, however, a worst scale block contains 67 times as much data.

More so, utilizing a single resource for both worst-case scenarios and average scenarios will not work properly. The users of the Ethereum network will pay more when they could pay less for an operation on the network. Therefore, the new concept of fees proposed by Vitalik Buterin will create a fair structure in which gas will be utilized more optimally, which enables users to spend less on various types of operations like keystroke, transactions, call data, and some more.

Even more, Vitalik Buterin proposed two different ways to achieve a new tariff structure on the network. The first one is the cost of running the gas remains fixed and the operating costs depend on the type of resource utilized divided on the base royalty, and the second option proposed by Buterin is purer, requires the development of a fixed base price and an unlimited gas block.

More so, priority royalties will be paid to those who produce blocks on the network that is equal to the basic normal royalties plus a percentage. Therefore, a more sufficient and friendly price structure will help the network to grow further in a good way.

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