Ethereum is getting a major upgrade with the introduction of “blobs.” These are basically big data storage units that will make the network much faster and cheaper to use.
How Blobs Will Boost Ethereum
A crypto researcher, Tim Robinson, has done some simulations showing how blobs could drastically change Ethereum’s future. He believes blobs are a huge deal for the long-term price of ETH.
Here’s the gist:
- More Speed, Lower Costs: Blobs will allow Ethereum to handle 10,000 transactions per second (TPS) while keeping transaction fees super low (around $0.06). This is a massive improvement over the current situation.
- Burning ETH: As more people use blobs, Ethereum will burn a significant amount of ETH every year (around 6.5% of the total supply). This means there will be less ETH in circulation, potentially making it more valuable.
- Scalability with Validators: The network’s capacity to handle blobs will increase as more validators join. This means Ethereum can scale up to handle even more transactions.
- A Positive Feedback Loop: The lower the price of ETH, the more transactions will happen, leading to more ETH being burned. This creates a positive feedback loop that could drive the price of ETH up.
The Future of Ethereum
Robinson’s research suggests that blobs could be a game changer for Ethereum. He believes that ETH will become even more valuable as it becomes the most useful, scarce, and deflationary asset in the world.
However, there are still some questions to be answered. For example, how will L2s (layer 2 scaling solutions) adapt to the new blob system?
Overall, the future of Ethereum looks bright with the introduction of blobs. It’s an exciting time to be in the Ethereum ecosystem!
