Ethereum has officially raised reached consensus to raise its gas limit above 31 million with over 50% validators in favor of the change. This is a first change under its Proof of Stake (PoS) mechanism which will make way for enhanced scalability, faster transactions and lower fees.
The Reason Behind Ethereum’s Gas Limit Hike
Higher gas limit allows more transactions to take place per block and also eases congestion and decreases transaction fees. Currently on the Ethereum blockchain, decentralized finance (DeFi) projects, non-fungible tokens (NFTs), and decentralized applications (dApps) are being processed, with increase in such projects on the blockchain, the demand for efficient processing also increases. Hence, there has been a need to increase the gas limit of the blockchain.
What This Means for The Future of Crypto?
The increased limit will help Ethereum to handle more transactions and make it more efficient but there is a catch. This increase in the gas limit could also bring in potential risks. The larger blocks require more powerful computers to process, which could lead to a situation where only a few powerful players would be able control the network. Despite the risk, this upgrade is needed now more than ever as it will make things easier for everyone.
Should One Consider Other Altcoins?
While Ethereum upgrades, the community is currently contemplating if they should make a shift to altcoins such as Solana, XRP or Tron or not. Each of ecosystem has its own merits, Solana offers lightning-fast speeds, XRP is well-known for its cross border transfers, Tron excels in dApp performances and Ethereum’s vast ecosystem and innovation has helped the blockchain stay ahead in the game. Ultimately, the choice depends on specific needs of the project.
At press time, the price of the Ethereum token stands at $2,691.57 with a surge of 4.6% in the past 24 hours.
Also Read: Here’s Why Polygon Price Sits at the Bottom of 125% Surge
