Since the London upgrade of the Ethereum network earlier this month, average daily gas consumption has increased by around 9%, for several reasons.
The graph of Etherscan’s average daily gas consumption to date shows us that gas consumption, including the number of Ethereum transactions, has increased by around 9% since the London upgrade on August 5, 2021. Consumption has risen from around 92 billion to just over 100 billion. The last time there was such a significant change was around April 21, 201. At that time the value increased by 17%.
Ethereum co-founder Vitalik Buterin published an analysis on Reddit in which he gave three reasons for the increase in these numbers.
Three reasons for the increase in Ethereum network capacity
With the London upgrade, the so-called “Ethereum Ice Age”, which had almost started, was also delayed, Buterin said. The average block times have thus fallen back to their long-term normal level of around 13.1 seconds. He explained:
“That’s a ~ 3% difference in block speed, which explains 3% of the 9% increase in on-chain gas consumption.”
The so-called “Difficulty-Bomb”, the “bursting” of which the Ice Age is postponing, is related to the increasing degree of difficulty or the complexity of the tasks to be calculated in the proof-of-work mining algorithm. As the calculations become more difficult, the time it takes to mint a new block increases. In addition, the rewards for the miners then decrease.
The second reason for the increase is that there was more unused block space available prior to the London upgrade as the maximum gas consumption was set at 15 million. This number has been a target value since the upgrade, but is no longer the maximum value.
“If the average gas consumption, including the empty blocks, is below 15 million, the basic charge drops until the average is back to 15 million. So that makes up another ~ 2-3%. “
Third, the EIP-1559 formula doesn’t always work optimally when it comes to burning 50% of the base fee, explained Buterin. There is a complex relationship between arithmetic and geometric means for block size and billing. The average blocks are now slightly larger (more than 50%) than before the upgrade, which also leads to a slight increase in capacity. Vitalik Buterin concluded:
“Ethereum users can look forward to the inadvertent capacity increase of 6% brought by the London upgrade.”
Gas fees are rising again
Ethereum users are unlikely to be pleased with the recent spike in gas prices due to CyberKongz’s NFT launch on August 15, 2021. According to BitInfoCharts, the average transaction fee is now close to $ 25. Users pay up to $ 40 for a token swap and even more for complex smart contract operations.
Translated by Maximilian M.
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