Ethereum News Today: Ethereum's Fee-to-Security Shift Drives Scalability Breakthrough

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Saturday, Oct 4, 2025 7:13 am ET2min read
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- Ethereum's Fusaka upgrade (Dec 3, 2025) triples transaction capacity via 150M gas limit and introduces PeerDAS/Verkle Trees for decentralized scalability.

- Testnet phases (Holesky/Sepolia/Hoodi) and $2M bug bounty precede mainnet deployment, emphasizing security while enabling L2 cost reductions for 60% of rollups.

- 11 EIPs including spam resistance and blob fee adjustments balance throughput with node security, though larger blocks may require infrastructure upgrades.

- The shift to L2-driven fees and enhanced data availability positions Ethereum as a security-first infrastructure, prioritizing global scalability without compromising decentralization.

Ethereum's Fusaka upgrade, set for activation on December 3, 2025Ethereum Fusaka Upgrade: All You Need to Know - Binance[1], marks a pivotal step in the network's scalability evolution. The upgrade increases the block gas limit from 45 million to 150 million, tripling Ethereum's transaction processing capacityEthereum Fusaka Upgrade: All You Need to Know - Binance[1]. This expansion is complemented by two critical technical innovations: Peer Data Availability Sampling (PeerDAS) and Verkle Trees. PeerDAS allows validators to verify data availability by sampling fragments rather than downloading entire data blobs, reducing bandwidth and storage demandsEthereum Fusaka Upgrade: All You Need to Know - Binance[1]. Verkle Trees, a more efficient data structure, compress blockchain state proofs, enabling faster verification and lower storage requirementsEthereum Fusaka Upgrade: All You Need to Know - Binance[1]. Together, these changes aim to maintain Ethereum's decentralization while supporting higher throughput.

The upgrade follows a phased roadmap, with testnet activations on Holesky (October 1), Sepolia (October 14), and Hoodi (October 28) to validate performance and stabilityEthereum Fusaka Upgrade: All You Need to Know - Binance[1]. Prior to mainnet deployment, a four-week bug bounty program offering up to $2 million in rewards will incentivize security auditsEthereum Fusaka Upgrade: All You Need to Know - Binance[1]. Developers emphasize that the increased gas limit, combined with PeerDAS and Verkle Trees, will reduce strain on node operators, ensuring the network remains accessible and secure as transaction volumes growEthereum Fusaka Upgrade: All You Need to Know - Binance[1]. Asset manager VanEck noted that the upgrade could lower transaction costs for end users by easing data availability constraints for Layer 2 (L2) rollups, which now account for 60% of rollup data submissionsHow Ethereum’s Fusaka Upgrade Could Be a Game-Changer[2].

Ethereum's roadmap prioritizes long-term scalability without compromising security. The upgrade introduces 11

Improvement Proposals (EIPs), including EIP-7594 (PeerDAS), EIP-7825 (spam resistance checks), and EIP-7935 (gas limit adjustments)Ethereum Fusaka Upgrade: What the November 2025[4]. These changes refine data availability, prevent denial-of-service attacks, and enable future scalability adjustments via "blob parameter-only forks." The Ethereum Foundation highlights that the gas limit increase is paired with a transaction gas limit cap (2^24 gas per transaction) to prevent individual transactions from overwhelming nodesFulu-Osaka (Fusaka) | ethereum.org[3]. Additionally, EIP-7918 ties blob fees to execution costs, ensuring fair pricing during congestionFulu-Osaka (Fusaka) | ethereum.org[3].

For users and developers, the upgrade promises tangible benefits. Higher gas limits and improved data availability will enable L2s to process more transactions at lower costs, potentially reducing fees for everyday usersHow Ethereum’s Fusaka Upgrade Could Be a Game-Changer[2]. Developers gain flexibility to deploy resource-intensive applications, while validators benefit from reduced bandwidth usage due to PeerDASEthereum Fusaka Upgrade: All You Need to Know - Binance[1]. However, challenges remain: increased block sizes may require node operators to upgrade infrastructure, and institutional ETH staking could dilute non-staked holdingsHow Ethereum’s Fusaka Upgrade Could Be a Game-Changer[2]. VanEck analysts caution that while Fusaka strengthens Ethereum's role as a monetary asset, its fee revenue model has shifted toward L2s, necessitating continued innovation to maintain network securityHow Ethereum’s Fusaka Upgrade Could Be a Game-Changer[2].

The Fusaka upgrade underscores Ethereum's transition from a fee-driven to a security-centric model. By prioritizing data availability and L2 integration, the upgrade aligns with the network's vision of becoming a scalable, decentralized infrastructure for global applications. As testnet phases progress and the mainnet approaches, the focus will remain on ensuring smooth activation and addressing potential bottlenecks. With its combination of technical rigor and strategic foresight, Ethereum's Fusaka upgrade positions the network to meet rising demand while preserving its foundational principles of security and decentralizationEthereum Fusaka Upgrade: All You Need to Know - Binance[1]Fulu-Osaka (Fusaka) | ethereum.org[3].