Ethereum’s latest Fosaka upgrade focuses on engineering improvements designed to reduce network costs and enhance performance. Unlike previous major upgrades that introduced new concepts, Fosaka aims to resolve specific issues through practical refinements. The upgrade particularly targets lowering Layer 2 (L2) costs, primarily related to data publishing fees incurred on Layer 1 (L1). By expanding data availability eightfold through block technology and PeerDAS random sampling verification, Fosaka significantly reduces L2 fees. While some experts believe that lowering L2 fees alone may not substantially increase activity across the Ethereum ecosystem, the upgrade is expected to positively impact specialized application chains, especially those involved in real asset infrastructure and payment systems.
Additionally, Fosaka stabilizes block fees and implements a minimum base fee (EIP-7918), supporting ongoing ETH burning. This counters the temporary inflation observed after the Denken upgrade and reinforces Ethereum’s role as a reliable global settlement layer. The gas limit has been raised to 60 million, increasing L1 throughput. Although Ethereum’s transactions per second improve moderately compared to other blockchains, its rollup-centric approach—combining L1 settlement with L2 execution—provides enhanced flexibility and capacity. The validator limit is reduced by 85% via PeerDAS, promoting decentralization and alleviating institutional control concerns. This light implementation of sharding improves scalability and opens participation opportunities for traditional financial firms like Fidelity and BlackRock.
Overall, the Fosaka upgrade positions Ethereum as a more stable, efficient, and institutionally scalable blockchain, enabling dual development paths and a micro-deflationary value model. It remains to be seen whether this advancement will restore confidence among advanced ETH users.
Source: binance
