Ethereum price surge continues with the altcoin trading at around $477 as of this writing and while that’s good news, reduction in ethereum network congestion as well as transaction fees has also brought about a positive wave for the cryptocurrency.
As of this writing, ethereum’s transaction fees have fallen down to less than 10 cent from a recent high of more than 50 cent. Network congestion has reduced by more than 50 per cent at around 14,000 down from 30,000.
One of the reasons behind the reduction in transaction numbers and fees is miners raising ethereum’s gas limit (blocksize) by 1 million computations from 6.7 million to 7.7 million. Unlike in bitcoin, ethereum’s blocksize is a soft limit, with a simple majority of miners deciding whether it should increase or decrease.
Despite opposition from Ethermine other miners increased the gas limit thereby providing some temporary relief and solving what could have been a a very unappealing situation.
Ethereum may now continue operating smoothly while handling more than 700,000 transactions a day. The number of transactions per day will definitely increase with ethereum gaining momentum – both in terms of popularity and pricing.
For bitcoin, studies have suggested that 4MB is safe and considering the continued advance of technology, 8MB may be pretty safe. It’s unclear whether the same applies to ethereum, which has a current blocksize of around 0.8MB of data for every 10 minutes.
If eth’s blocksize can gradually be increased 4x in line with demand, then we would be looking at almost 3 million transactions a day. That should hopefully be enough for the kitties, and more importantly, it might hopefully be sufficient until the more long term solutions, such as sharding, are implemented.
Ethereum’s network, therefore, may continue operating finely as thankfully the simple majority of eth miners seems to have led to a decision in favor of smooth operations. Thus resolving this situation without endless debate as we wait for further scalability through protocol improvements.