Ethereum Gas Fee Upgrade SHOCKING RESULTS!📉 Coinbase Fees Go to Zero🔥

Summary

The 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.