Ethereum Gas Fee Upgrade SHOCKING RESULTS!📉 Coinbase Fees Go to Zero🔥
Summary
TLDRThe video discusses the Ethereum upgrade and its implications for transaction fees on Layer 2 solutions like Optimism, Arbitrum, and Avalanche. It highlights the significant fee reductions achieved and the potential for further scalability improvements. The video also touches on the shift of projects like WAGY to Base and Aether Games potentially moving to Avalanche, emphasizing the importance of transaction volume and ecosystem growth. Additionally, it mentions the efforts of platforms like Base to cover user gas fees, fostering a more accessible web3 environment.
Takeaways
- 🚀 The Ethereum upgrade, known as Denuon, is expected to significantly reduce transaction fees, making Layer 2 solutions like Optimism and Base more attractive for Ethereum transactions.
- 💡 Jesse Pollock from Coinbase's Base team highlighted that after the upgrade, fees could be reduced by three zeros, indicating a substantial decrease in transaction costs.
- 📉 The comparison of transaction fees shows that Base is now much cheaper than Solana, positioning it as a competitive Layer 2 solution for Ethereum.
- 🔥 The introduction of sharding and blob growth strategies in Ethereum's Layer 2 is expected to further enhance scalability and reduce transaction costs over time.
- 🌐 The script discusses the importance of smart contract wallets, which are enabled by low fees, and how they can lead to applications paying for gas instead of users.
- 💰 Base is working on a solution to address the issue of high network fees when connecting wallets, which could further reduce the cost of transactions.
- 🎉 The Super Chain App Accelerator's $3 million fund aims to cover user gas fees, making web3 applications more accessible and affordable.
- 📆 The Polygon ZK-VM44 upgrade is estimated to go live around May 1st, indicating a timeline for the implementation of these improvements.
- 🔄 The script mentions the potential for cross-chain decentralized exchanges (DEXs) like Dextelot to benefit from the upgrades, as they can operate across multiple blockchain ecosystems.
- 🎮 Wagy, a gaming project, has decided to move from Immutable X (IMX) to Base, showcasing the potential for projects to migrate to platforms that offer lower fees and better scalability.
Q & A
What is the main topic of the video?
-The main topic of the video is the upgrade for Ethereum called 'Denon' and its implications on transaction fees and scalability in the Ethereum ecosystem.
What is the significance of the Denon upgrade?
-The Denon upgrade is significant because it introduces scalability to Layer 2 solutions, potentially reducing transaction costs and driving them down, which is beneficial for the entire Ethereum ecosystem.
How does the Denon upgrade affect transaction fees?
-The Denon upgrade is expected to greatly reduce transaction fees, with some estimates suggesting a 90 to 99% drop in L2 transaction fees on Base and other chains, making transactions cheaper and more efficient.
What is the role of Base in the Ethereum ecosystem?
-Base is a Layer 2 scaling solution for Ethereum that aims to provide fast and cheap transactions. It is considered an alternative for other Layer 2 solutions like Optimism, Arbitrum, and Avalanche.
What is the expected timeline for the Polygon ZK-VM44 upgrade?
-The Polygon ZK-VM44 upgrade is estimated to go live on the mainnet around May 1st.
How does the video script mention the role of smart contract wallets in the future of transaction fees?
-Smart contract wallets are expected to play a crucial role in reducing transaction fees. They could enable apps to pay for gas fees on behalf of users, which is facilitated by low transaction fees resulting from upgrades like Denon.
What is the Super Chain App Accelerator mentioned in the script?
-The Super Chain App Accelerator is a $3 million fund launched by Base to cover user gas fees for on-chain apps built on Optimism, aiming to make the cost of using Web 3 apps on the Super Chain zero for users.
What is the potential impact of the Denon upgrade on the growth of the Ethereum ecosystem?
-The Denon upgrade sets the stage for more growth in the Ethereum ecosystem by introducing scalability and reducing transaction costs, which could attract more users and projects to the platform.
What does the script suggest about the future of transaction fee structures?
-The script suggests that transaction fee structures will continue to evolve, with the potential for further reductions in fees as transaction volumes increase and scaling solutions like Layer 2s continue to develop.
What is the significance of the mention of Wagy moving to Base?
-Wagy's move to Base signifies that projects are considering migrating to different platforms for better scalability and lower fees, which could be a trend for other projects in the future.
What is the potential implication of Aether Games moving to the Avalanche ecosystem?
-The potential implication is that projects are exploring various ecosystems for better performance and cost efficiency. Aether Games potentially moving to Avalanche indicates a strategic shift that could influence other projects in the gaming sector.
Outlines
🚀 Ethereum's Denon Upgrade and Its Implications
This paragraph discusses the recent upgrade for Ethereum known as Denon, which is anticipated to significantly reduce transaction fees. The speaker, Paul, highlights reports suggesting that the upgrade could lead to a substantial decrease in fees from 38 cents to just four cents. The discussion includes insights from Jesse Pollock, a leader at Coinbase's base team, who emphasizes the importance of the upgrade in terms of fee reduction. The upgrade is expected to make Layer 2 solutions like Base more attractive for projects due to its lower fees compared to other chains like Arbitrum, Avalanche, and Optimism. The paragraph also touches on the potential for unlimited scalability in Layer 2s and the impact this could have on the future growth of Ethereum and its ecosystem.
🌐 Web3 Development and Ecosystem Growth
The second paragraph focuses on the challenges and developments within the Web3 ecosystem. It addresses the complexity and high costs associated with using Web3 apps, which can deter new users. To combat this, the speaker announces a partnership with Optimism to invest over $3 million into the Web3 development ecosystem. The goal is to reduce the cost of using Web3 apps to zero by covering gas fees for users. The paragraph also discusses the F upgrade for Polygon and its timeline, as well as the potential benefits for other blockchain projects like Avalanche and Dexelot. The speaker mentions an interview with the Wagman team, discussing their experience with OpenSea and the possibility of exploring alternative platforms for game development.
🎯 Project Migrations and Upcoming Developments
In the final paragraph, the speaker speculates on the potential migration of Aether games to the Avalanche ecosystem, indicating a shift in the gaming and innovation landscape within blockchain projects. The paragraph also mentions the upcoming launch of Pulsar and a related giveaway event. The speaker encourages viewers to subscribe to the channel for exclusive content and NFT packs, emphasizing the importance of community engagement and the value of staying informed about the latest developments in the blockchain and gaming sectors.
Mindmap
Keywords
💡Denon Upgrade
💡Ethereum
💡Layer Two
💡Gas Fees
💡Base
💡Arbitrum
💡Optimism
💡Avalanche
💡DEXEL LOT
💡Polygon
💡Wagy
💡Aether Games
Highlights
Denon upgrade for Ethereum aims to significantly reduce transaction fees.
Ethereum's Layer Two solutions, such as Base and Arbitrum, are expected to see a reduction in fees due to the Denon upgrade.
Jesse Pollock from Coinbase's base team highlights the transition from two zeros to three zeros in terms of fee reduction.
Base is being considered as an alternative for Layer Two solutions due to its low fees and fast transactions.
The Denon upgrade introduces scalability to Layer Twos, potentially leading to unlimited scalability and continuously decreasing transaction costs.
Optimism and Base are expected to benefit greatly from the fee reductions, making transactions cheaper than on other platforms like Solana.
Base is working on a solution to eliminate the high network fees when connecting wallets, which is a significant issue in current Layer Two solutions.
Coinbase is investing in smart contract wallets, which could lead to apps paying for gas instead of users, enabled by low fees.
Super Chain App Accelerator is launching with a $3 million fund to cover user gas fees, aiming to attract more users to the ecosystem.
Polygon's F upgrade (ZK-VM44) is estimated to go live on mainnet around May 1st, indicating a timeline for the implementation of the Denon upgrade.
Aether Games is potentially moving to the Avalanche ecosystem, indicating a shift in the gaming sector towards platforms with lower fees and better scalability.
Wagy, a project initially on IMX, is moving to Base, showing a trend of projects migrating to platforms with lower fees.
The Denon upgrade is just an incremental step towards a more aggressive sharding strategy for Ethereum.
Dexelot, a cross-chain DEX, is expected to see an increase in daily volume if it launches on Arbitrum.
The upgrade aims to make transactions essentially free, driving a 90 to 99% drop in L2 transaction fees.
The fee reductions are expected to open up a new class of applications and bring in a new cohort of users.
The ecosystem is seeing growth with decentralized social networks and web3 gaming, but user experience and high gas fees remain challenges.
Transcripts
[Music]
I want to give you guys an update on
Denon the upgrade for ethereum and what
this might mean there's actually some
reports now to where we can give you
guys some insights it's going to be good
my name is Paul be welcome back in Tech
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just like a normal exchange so check it
out itust capital.com all right so we
were showing you guys this chart
yesterday or the day before on our eth
video on the Denon upgrade this is a
good example of it what the expectations
were for fees uh from a projection
standpoint you can kind of see it from
38 cents down to four Etc arbitrum po on
all reducing quite a bit for sure
another thing that if you look at it for
base the fees were even much lower uh
notice though this is a34 rate from 17
cents mainly these are the gas fees for
being able to transact on ethereum uh in
Layer Two so that was the purpose of den
con all right so one thing you can see
from Jesse Pollock this is one of the
guys that leads coinbase's base team
after two years hard of hard work um but
after the den it's actually instead of
you know what we showed was two zeros
it's actually three zeros
00005 in terms of the fee I'm going to
kind of zoom in on that and then it
shows some of the the base transactions
pre and then post right there in terms
of network fees so this is good for Bas
and it's good for a lot of projects to
maybe look at Bas as an alternative for
their layer to fastest and cheapest and
way to send ethereum is on base now you
can kind of see it right here as it
lines up against eth arbitrum avalan C
chain optimism Etc all right and some of
those issues I'll explain in a second
but this right here is just a good
example of how it Compares against Salon
much cheaper right now than salana so
that's another Advantage for Bas okay so
I want to go to a clip real quick this
is based on the fee reductions them
talking about it listen it put those
things together and that means blobs are
basically going to be free at first um
and so if you do the math with that
we're going to see 90 to 99% um drops in
in uh L2 transaction fees on base and
and other super chain chains I think
even over the longer term it's going to
be at least 10x um and it sets sets us
up for more growth in the future as well
right this is I like to emphasize that
uh this version of 4844 is just an
incremental step towards a more um
aggressive sharding strategy for uh and
and blob growth strategy for for l2s in
ethereum yeah and this is something I I
think most people don't realize is this
is just the beginning we're going to
actually be able to increase this blob
space capacity you know every 6 to 12
months kind of forever uh to keep up
scaling with all the the new transaction
growth that's coming on
ethereum all right so what that simply
means is that scalability has just been
introduced into layer 2os maybe
unlimited scalability we'll see but the
point being is that transaction costs
will continue to drive themselves down
and that is a huge huge deal for all of
the L twos now there the one thing I was
kind of explaining here all right so to
do anything on optimism you've got to
have eth in the wallet so you've got to
be able to go into the bridge so this is
showing the bridge uh right there on eth
uh two base and you can kind of see here
we're just putting in a you know a
number but on uh one e but if you look
here the network fees pretty low right
in terms of being able to transact that
the problem is when you actually connect
your wallet and go in what you have on
the back side are the eth network fees
so there's still a fairly good feat now
there is a solution that Bas is working
on that'll fix this this is so important
and I'm gonna go to a clip real quick
they'll explain it listen in I think
it's going to really open up an entirely
new class of applications and bring on
an entirely new cohort of users um we
you at coinbase we're investing heavily
in smart contract wallets um I think
we're going to see things like apps
starting to pay for gas right not users
having to pay for gas um and that is
enabled by smart contract wallets and
smart contract wallets are enabled by
low
fees so as you can see the daps will be
the bearer of the wallet cost or the The
Exchange fee costs uh of being able to
go into that is that sustainable yeah
could be in terms of a strategy to be
able to draw in a lot of people within
this larger ecosystem with what Bas is
doing so here's a good example of one
that is already covering gas fees on
this one so they launch super chain app
accelerator it's $3 million fund
optimism for onchain apps to cover their
users gas fees that's straight up kind
of the point here that they were talking
about there at base all good listen in
the clip that they were talking about
here decentralized social is taking off
web 3 gaming is exploding layer 2s are
experiencing more activity than ever
before however web 3 is still a daunting
place for users using a web 3 app is
complex and expensive with high gas fees
and a poor user experience it's time
kill the friction we're excited to
announce that we're partnering with
optimism to inject over $3 million into
the web3 development ecosystem bringing
the cost to use web 3 apps built on the
super chain down to zero no e required
Builders who qualify will receive
sponsorship for contract deployments
account abstraction and gas fees for
your apps user give them access to this
broad user base and extensive
distribution all right so talking about
polygon this is kind of the layout of
what they're going to do uh which is is
really talking about this item right
there which is the F upgrade now what
does that mean in terms of timeline the
timeline kind of rolls it out right here
on the polygon uh Tech site polygon ZK
vm44 estimated to go live on mainnet
around May 1st that's a little bit
further away than I kind of thought so
that in itself little bit behind there
but Hey listen everybody's going to be
kind of working this into to their
systems I think this is the key of being
able to grow in Layer Two definitely a
big one let me jump to another piece
piece right here this is kind of what
they're talking about polygon approve a
stake chain doesn't benefit from 4844
it's not a rollup therefore it doesn't
use a theum called at histor transaction
for polygon cdk chains support 48 488
4844 will be included later this year so
more delay there I think that's maybe
one of the disadvantages you know of
where this plays into the situation
around there too so I think optimism
wins on this Bas is obviously going to
be uh winning in a big way for sure the
other one is going to be Avalanche and
this is dexel lot coming in because this
is a pretty interesting component as
well dexel lot and arbitrum now being
know remember dexel lot is a cross chain
uh deck so that in itself pretty cool uh
you have to kind of look at the entire
uh ecosystem where many of these
projects are are line and where some of
these things are going to be able to
expand from so pretty interesting stuff
here of course is dexel lot after that
announcement it exploded on the charts
and a lot went up uh being the token a
lot went up appropriately so that's kind
of expected here Avalanche is going to
continue to do some pretty cool things
all right so one thing to kind of
compare here is also the uh just the
potential launch on arbitrum or when
they launch on arbitrum you're going to
continue to see this thing uh in terms
of daily volume absolutely explode so
Dex lot on the look for that one as well
I want to jump over to a clip we did
with the Wagman team it's been a while I
think maybe five six months go and we
were talking to them about the potential
shift of wagney listen in so you guys on
your Twitter you had uh you did your
announcement you had the September 27th
drop uh first of all how did it go you
to be honest with you it didn't go as
well as we expected it to there was a
little bit of some hoops that you guys
had to jump through it right now the way
the openc mint work because we were
actually featured on openc is we had to
leverage what they had to do as far as
the mint was concerned so they have L2
on IMX quite yet so therefore you know
having to do the L1 for the actual packs
when I look at IMX I just look at you
know there's a limited amount of of
featured marketplaces here I still look
at you know obviously things like
Avalanche uh salana you know some of
those other platforms that are
eventually going to grow so is this in
your road map at some point to maybe
look at some Alternatives there I mean
do you feel trapped in IMX at
all all right so that was some something
we talked about obviously IMX is a is a
very good project launch pad for many
games coming into the ecosystem but wagy
made a move and this was Scott Herman
talking about I'm very excited we've
been working for this for quite some
time wagy now going over to base so
that's a pretty big deal even Brian
Armstrong retweeted this so uh very
important with uh games because if it
does show the path for some of these
projects to be able to migrate be kind
of interesting to see how this goes
remember transaction and volume and
ecosystem matters in a big way and now
you're talking about something with this
upgrade that is going to be replicated
to be able to continue to reduce fees as
transaction scale climbs so all good
signs for everything another one to
watch that you need to pay attention to
is this one right here Aether games now
I'm going to zoom in on this right here
I want you to look at that that Q2 2024
what do you see there Aether subnet now
this is is another one that could be
moving and if this one moves it's going
to most likely go into the Avalanche
ecosystem so have we discovered Maybe by
mistake or intention that Aether games
is moving their way over to avac
interesting stuff man I think this is a
this is the cycle in which a lot of
these projects games and Innovation that
are happening in these key gaming
centers whether it is in layer 2 on eth
whether you look at salana what they've
been able to do and also Avalanche all
of this really kind of jumping in Pulsar
is getting ready to launch as well by
the way we're going to be doing a huge
giveaway for Pulsar on some nfts you
guys don't want to miss it I think we're
going to be doing that video on Friday
so make sure and subscribe to the
channel right now we'll be dropping that
in the video and you guys will have an
ACC access to a a pbn only uh nft pack
that is unbelievable it's you guys are
going to love it so uh subscribe to the
channel make sure and like this video if
you guys want more content like this we
always love it and of course catch me
out there on x Paul Baron we'll catch
you next time right here on Tech
by
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