Ethereum Berlin Upgrade Includes Fixes to Tackle Gas Price Problem – Yahoo Finance

Ethereum Berlin Upgrade Includes Fixes to Tackle Gas Price Problem – Yahoo Finance

The Ethereum Berlin upgrade goes live on April 14. This is the first update since Istanbul 15 months ago.

The update comes at a time when the price of ethereum (ETH) is relatively stable, hovering around $2,000 over the past weeks, and the amount of staked ETH reaches over $6 billion.

Traffic, Congestion, and Gas

Decentralized finance (DeFi) and non-fungible tokens (NFTs) have been on everyone’s minds and in everyone’s wallets for the better part of the year.

This was great for all of the project’s building on the ERC20 and ERC710 standard. However, users found themselves battered by jaw-dropping fees and sluggish transaction times. The Ethereum network needed to rise to the needs of its growing user base. Enter the Berlin upgrade.

Berlin seeks to provide answers to increased fees and complex transaction processes through this Ethereum improvement proposal (EIP).

Gas prices were high due to the double-edged sword of Ethereum’s increasing price point and the ever-growing demand for assets on the network.

In late February, transaction fee averages reached almost $40, which was an all-time high. Yet, rates even half that amount are burdensome for developers and those seeking to perform small-scale transactions. 

High fees are a two-sided problem. Primarily, it inhibits individuals from transacting on Ethereum. The so-called “world computer” is useless if no one can afford to use it.

Furthermore, it makes
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