- Ethereum co-founder, Vitalik Buterin, emphasizes the importance of PeerDAS, a “rare innovation” to address data bottlenecks limiting its growth.
- PeerDAS allows nodes to download small pieces of data called “chunks” to confirm the entire dataset is available across the network.
- This approach is key to unlocking scalability for layer 2 networks first, and later for layer 1 as Ethereum continues to evolve.
Ethereum, the world’s second-largest blockchain by market capitalization, is preparing for a critical evolution in scalability. Its co-founder, Vitalik Buterin, recently emphasized the importance of a novel solution known as PeerDAS, which he described as a “rare innovation” capable of addressing the long-standing data bottlenecks that limit Ethereum’s growth. Coupled with the upcoming Fusaka upgrade, Ethereum’s developers believe the network will move closer to achieving mass adoption by making layer 2 rollups faster, cheaper, and more efficient. The announcements come at a time when Ethereum usage is surging, particularly due to demand from Coinbase’s Base network and the controversial Worldcoin project, which have both placed significant strain on Ethereum’s capacity. With a planned release in December 2025, Fusaka promises to double blob targets and gradually expand data throughput, marking one of the most transformative technical upgrades in Ethereum’s history.
Why PeerDAS Matters
Since its inception, Ethereum has grappled with the challenge of scalability. While the platform is renowned for its smart contract functionality and decentralized applications (dApps), these innovations come at a steep cost: congestion and high transaction fees. Ethereum’s layer 2 solutions, such as rollups, were designed to ease pressure on the main chain by batching transactions off-chain and then submitting summaries back to layer 1. But despite their promise, rollups face their own hurdles, especially when it comes to data availability limits. This is where PeerDAS (Peer-to-Peer Data Availability Sampling) steps in. Instead of requiring nodes to download the entire blockchain dataset, PeerDAS allows them to download small pieces of data called “chunks”. Through a process of sampling and verification, nodes can confirm that the entire dataset is available across the network. Buterin called this approach “rare” because it allows a live blockchain to function without any single node shouldering the burden of downloading every byte of data. This innovation, he argued, is key to unlocking scalability for layer 2 networks first, and later for layer 1 as Ethereum continues to evolve.
The Road to PeerDAS
Ethereum formally introduced PeerDAS through EIP-7594 in January 2024. The improvement proposal laid out a method to ensure blob data remains accessible even when only a portion of it is downloaded. The reasoning was straightforward: if data access improves, then Ethereum scales more effectively. For rollups, this is especially crucial because their efficiency depends heavily on how much data can be securely stored and retrieved on layer 1. By distributing the responsibility for data verification across multiple nodes, PeerDAS reduces the hardware burden, lowers barriers for participation, and enhances network decentralization—all while improving performance.
Ethereum’s New Data Currency
The conversation around PeerDAS cannot be separated from the concept of blobs, short for Binary Large Objects. Introduced with the Dencun upgrade in March 2024 under EIP-4844 (proto-danksharding), blobs represent a novel way of handling large amounts of data on Ethereum. Blobs store data in a more cost-effective format, reducing gas fees and making rollups far more practical. By design, they are temporary, allowing Ethereum to handle higher volumes of data without bloating the blockchain permanently. Recently, Ethereum reached an important milestone when the network hit its target of six blobs per block for the first time. This achievement was highlighted by Dragonfly’s head of data, Hildebert Moulié, who pointed out that Base and Worldcoin were responsible for much of the new blob demand. For Ethereum developers, this milestone underscored both the potential and the urgency of expanding blob capacity. Without more blobs, layer 2 networks would remain constrained, limiting Ethereum’s ability to scale to global usage.
The Fusaka Upgrade
Ethereum’s upcoming Fusaka upgrade, scheduled for December 3, 2025, is set to integrate EIP-7594 and dramatically raise blob targets. Currently, Ethereum supports 6–9 blobs per block. After Fusaka, this number will double, providing significantly more room for rollup data. Buterin emphasized that while the technology is groundbreaking, developers must proceed cautiously. He warned that blob counts will increase gradually at first to ensure stability before reaching higher thresholds. Following Fusaka, Ethereum will roll out two Blob Parameter Only (BPO) forks:
- The first fork will increase blob capacity from 9 to 15 blobs per block.
- The second, planned for January 2026, will push the number up to 21 blobs per block.
Ethereum researcher Christine Kim explained that this staggered approach ensures the network adapts smoothly without compromising security or reliability.
Why This Matters for Layer 2 Networks
For layer 2 rollups, the benefits of PeerDAS and Fusaka are immense. By increasing blob capacity and reducing the need for full data downloads, rollups can process transactions more efficiently. This leads to:
- Lower transaction costs for users.
- Faster confirmation times, improving user experience.
- Increased decentralization, as more lightweight nodes can participate in verification.
- Greater adoption of dApps and DeFi protocols built on Ethereum.
Essentially, PeerDAS and Fusaka pave the way for Ethereum to support millions of users simultaneously, a necessary step if it hopes to remain the dominant smart contract platform amid growing competition from Solana, Avalanche, and other blockchains.
The introduction of PeerDAS and the upcoming Fusaka upgrade mark a turning point in Ethereum’s journey toward scalability. By addressing long-standing data bottlenecks, Ethereum is not only empowering its layer 2 ecosystem but also laying the groundwork for future layer 1 improvements. Vitalik Buterin’s vision highlights a network that is both cautious and ambitious—eager to innovate but mindful of the risks. With the December launch of Fusaka, Ethereum takes another bold step toward becoming the world’s most scalable and efficient blockchain, capable of supporting the next generation of decentralized applications and financial systems. In a landscape where scalability determines survival, Ethereum’s bet on PeerDAS and blobs could be the breakthrough that ensures its dominance for years to come.
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