At a time when on chain activity has increased due to the rising prices of Ethereum, the Ether transactions network has got highly congested. In order to relieve the congestion on the network, the miners have increased the Ethereum gas limit to almost 15 million for the first time in history.
At the time of publishing this article, ETH was being valued at $ 2207 which saw a minimal 0.88% dip from its value on last Sunday. However in the last 24 hours, the price has gone down to almost 110 dollars.
What is Ethereum Gas?
Before we go ahead with the news, it is also important to know what actually Ethereum Gas is. As we know, the successful conduction of any transaction on a blockchain network requires computational efforts. We also know that Ethereum is not a first generation blockchain network like Bitcoin. It is a more evolved blockchain network.
Along with the transactions, certain other tasks are also performed on the ETH blockchain network. Successful execution of a smart contract is one of those and the computational efforts required to complete all these actions is known as ” Gas “.
Every action performed on Ether network requires some gas. Gas is also equally important for Miners who get paid the same number of Ether as their mining award as the number of gas it takes to complete that particular operation. No wonder they prefer the operations which have higher gas prices.
Ethereum gas is something which keeps the Ethereum network going.
How does Ethereum gas work?
The cost of each unit of gas in terms of ETH is decided by the user. They can set a higher or lower gas price. To maximize the rewards they (miners) can earn on the network after mining, they prefer operations with higher gas prices.
Just like Bitcoin, Ethereum too has a finite block space while the volume of on chain activity on the network is constantly increasing. This has resulted a rise in Ethereum gas prices on regular basis.
By increasing the Gas limit, more data is allowed in each Ether block making it more feasible to perform all the actions.
Explaining the current increase
Ever since Ethereum saw a hard fork, the major mining pools had been hinting to want to increase the gas limit from 12.5 million to 15 million.
Bitfly, the operator of Ethereum’s second-largest mining pool by hashrate confirmed the raise in a tweet on April 20th. This is now the seventh time in Ethereum’s history when miners have voted to increase the gas limit.
Following the efficiency improvements from the Berlin hard fork we believe it is save to increase the #Ethereum gas limit from 12,500,000 to 15,000,000.⛏️
Another huge milestone for the community.🥳
— Bitfly (@etherchain_org) April 20, 2021
Ethereum creator Vitalik Buterin had also suggested a raise previous week before it was made official by Bitfly.
“Now that the chain is safer, we can increase the gas limit, which makes every application cheaper,” Buterin had said on Reddit.