What Is The Surge Phase in Ethereum 2.0 Upgrade?

Ethereum continues to evolve with its next major upgrade, The Surge. This phase aims to enhance scalability without sacrificing decentralization or security. As part of Ethereum’s long-term vision, The Surge will increase the network’s capacity to over 100,000 transactions per second (TPS) across Layer 1 and Layer 2. This article explains everything you need to know about Ethereum's next step toward becoming the most scalable and efficient blockchain.

 

The Surge refers to Ethereum’s shift toward scalability, primarily through Layer 2 (L2) solutions and rollups. Ethereum’s founder, Vitalik Buterin, introduced this concept as part of Ethereum’s roadmap to make the network faster and more efficient. The main goal is to handle more transactions while maintaining decentralization, security, and interoperability.

 

Ethereum currently processes about 15–30 TPS on its base layer. While this works for many applications, it causes congestion during peak times, leading to higher gas fees. The Surge aims to address these bottlenecks, improving Ethereum’s ability to serve global-scale applications.

 

Key Features of The Surge

The Surge roadmap | Source: Vitalik Buterin 

 

1. 100,000+ TPS on L1 and L2 Networks: With Layer 2 rollups, Ethereum can process over 100,000 transactions per second. Rollups bundle many transactions and submit them to the Ethereum blockchain, improving throughput and reducing gas fees.

2. Decentralization and Security: The Surge ensures Ethereum remains decentralized by allowing users to run nodes with minimal resources. Enhanced cryptographic proofs, such as SNARKs, will strengthen the trustless nature of Ethereum.

3. Improved Data Availability with DAS (Data Availability Sampling): DAS enables nodes to verify data without downloading everything. This improves efficiency and supports the growth of L2 solutions.

Ethereum’s Path to 100,000 TPS

Ethereum’s current capacity is around 15–30 TPS on Layer 1. However, with rollups and DAS, the network aims to reach over 100,000 TPS. Vitalik Buterin emphasizes that Ethereum should feel like a single ecosystem, not a collection of fragmented blockchains.

 

This means better cross-chain interoperability between L2s and seamless user experience. Ethereum’s roadmap focuses on creating a network where moving assets between layers is as easy as sending ETH between wallets.

 

Ethereum’s The Surge involves multiple stages, with a focus on continuous upgrades across Layer 1 and Layer 2. Here is the expected timeline based on recent updates and the roadmap:

 

1. Q1 2024 – Dencun Upgrade (Proto-Danksharding Launch)

• Introduced Proto-Danksharding (EIP-4844) to improve data availability through data "blobs."

• Lays the foundation for further rollup scaling.

• Ethereum’s Layer 2 solutions begin leveraging improved data availability for faster and cheaper transactions.

2. 2024–2025 – Rollup Expansion and Maturing Proof Systems

• Rollups like Arbitrum, Optimism, and zkSync will implement updates to enhance scalability.

• New cryptographic proofs (e.g., SNARKs) will improve the trustlessness of rollups.

• Data Availability Sampling (DAS) systems such as PeerDAS and 2D DAS will expand to support higher transaction throughput.

3. Late 2025 – Gas Pricing Optimization and Layer 1 Enhancements

• Introduction of EOF (Ethereum Object Format) for more efficient smart contract execution.

• Potential adoption of multidimensional gas pricing to separate fees for computation, data, and storage.

• Possible native rollup solutions directly integrated into Ethereum’s protocol.

4. 2026 and Beyond – Full Danksharding Rollout

• Transition from Proto-Danksharding to full Danksharding, dividing Ethereum into multiple shards to boost scalability further.

• Ethereum aims to fully reach over 100,000 transactions per second across Layer 1 and Layer 2 ecosystems.

5. Post-2026 – Ongoing Monitoring and Upgrades

• Introduction of advanced consensus mechanisms, including post-quantum cryptography, to secure the network.

• Ethereum continues to optimize and integrate cross-L2 interoperability for a seamless user experience.

This timeline reflects Ethereum’s phased approach, ensuring stability and smooth adoption throughout the transition. Each step in The Surge builds on the previous one, ultimately aiming for a blockchain that can support global-scale applications while maintaining decentralization and security.

 

The following are the key elements that will be impacted during The Surge upgrade in the Ethereum 2.0 roadmap: 

 

Proposal for “division of labor” between L1 and L2s | Source: Vitalik Buterin 

 

Layer 2 Rollups: The Backbone of The Surge

Layer 2 rollups are essential tools for making Ethereum faster and more affordable. They bundle multiple transactions together off-chain (outside the main Ethereum network) and post a summary of these transactions to the Ethereum blockchain. This process reduces the load on the main network, making transactions quicker and cheaper.

 

There are two main types of rollups:

 

• Optimistic Rollups: These assume all transactions are valid unless someone reports an error within a specific period. This approach keeps things fast, as it doesn’t require every transaction to be verified immediately.

• ZK-Rollups: These use advanced mathematics called zero-knowledge proofs to confirm that transactions are valid right away. This method provides instant and secure verification.

Rollups are already making a big impact. According to L2Beat, the Total Value Locked (TVL) in Ethereum’s Layer 2 networks grew by 216% over the past year, surpassing $38 billion. As more people and projects use rollups, Ethereum is becoming more scalable and accessible, setting the stage for The Surge.

 

Ethereum Layer-2 TVL | Source: L2Beat 

 

Data Availability Sampling (DAS)

Data Availability Sampling (DAS) is a method that helps Ethereum handle large amounts of data more efficiently. In a decentralized network like Ethereum, every node must confirm that all the data for transactions is available. However, it isn’t practical for every node to store all this data. DAS solves this issue by allowing nodes to verify data without needing to download and store everything.

 

There are two key types of DAS:

 

• PeerDAS: This system uses peer-to-peer networks to distribute the workload. Each node in the network only checks a small piece of the data, and all nodes work together to confirm the entire dataset. This method ensures efficient data verification without requiring heavy storage.

• 2D DAS: This is an improved version of PeerDAS that takes verification a step further. It makes Ethereum even more scalable by verifying not only individual pieces of data but also how these pieces fit together. This ensures stronger security while keeping the network decentralized.

With DAS in place, rollups can handle more transactions without overloading the Ethereum network. This keeps the system fast, affordable, and decentralized, supporting Ethereum's goal of scaling without compromising security.

 

Plasma and Data Compression Solutions

One way (not the only way) to make an EVM plasma chain: use a ZK-SNARK to construct a parallel UTXO tree that reflects the balance changes made by the EVM, and defines a unique mapping of what is "the same coin" at different points in history. A Plasma construction can then be built on top of that. 

Source: Vitalik Buterin

 

In addition to rollups, Plasma and data compression techniques also help Ethereum scale efficiently. Let’s break these down to understand how they work:

 

• Plasma: Plasma processes transactions off-chain, meaning they occur outside the main Ethereum blockchain. Instead of submitting every individual transaction to the blockchain, Plasma only sends a summary of those transactions. This reduces the amount of data that needs to be stored on the main chain, improving speed and lowering costs. Think of it like grouping many small tasks into a single report—saving time and resources.

• Data Compression: Compression makes transactions smaller by reducing the amount of data they use. For example, Ethereum can switch from standard signatures to BLS signatures, which allow multiple signatures to be combined into one. This saves space on the blockchain and makes transactions more efficient, especially for systems handling large numbers of transactions, like Layer 2 networks.

How Plasma Works with Rollups

One way to make a Plasma system is by using ZK-SNARKs—a form of cryptography—to track the movement of coins. This system creates a “parallel ledger” that maps every coin’s journey over time. By summarizing only the necessary information to the main chain, Plasma ensures efficiency without sacrificing accuracy or security.

 

Together, Plasma and data compression techniques further enhance the effectiveness of rollups. These solutions help Ethereum reduce gas fees, process more transactions, and support large-scale applications, all while maintaining decentralization.

 

While rollups handle many transactions off-chain, Ethereum’s main blockchain (Layer 1) still needs upgrades to keep up with the growing ecosystem. These upgrades will ensure that Ethereum’s base layer remains scalable, efficient, and accessible. Let’s look at the key improvements coming to Layer 1:

 

1. Increased Gas Limits: Gas limits determine how much data can be processed in a single block. Raising the gas limit means Ethereum can handle more transactions per block, reducing wait times and easing network congestion. However, increasing the gas limit comes with risks. If the limit is too high, it could make running a node more expensive, which might reduce decentralization by limiting who can participate in securing the network. Ethereum aims to strike a balance—processing more transactions while keeping the network open and decentralized.

2. EVM Bytecode Improvements: The Ethereum Virtual Machine (EVM) is where smart contracts run. Ethereum is introducing a new bytecode format called EOF (Ethereum Object Format), which will make smart contract execution more efficient. This update will reduce gas costs, making transactions and contract interactions cheaper for both developers and users.

3. Multidimensional Gas Pricing: Ethereum will also implement multidimensional gas pricing, which separates gas fees into categories based on the type of resource used—computation, data, or storage. This approach ensures that users pay fair fees based on what their transactions actually require, optimizing the cost structure and improving the user experience.

4. Native Rollups on Ethereum: Native rollups are rollups that will run directly within Ethereum’s protocol. This means that Ethereum will support multiple parallel versions of the Ethereum Virtual Machine (EVM) working simultaneously. These native rollups will increase Ethereum’s ability to process transactions without overloading the network. Imagine having multiple tracks at a train station, each handling trains independently—this makes the whole system faster and more efficient.

These Layer 1 improvements ensure that Ethereum remains scalable and efficient, even as rollups take on most of the transaction load. Together, they will help Ethereum continue growing as a secure, decentralized platform capable of supporting complex applications and millions of users.

 

Ethereum’s The Surge upgrade promises to make the network more efficient and affordable, benefiting both everyday users and developers. Although some of the technical details can be complex, here’s a simple breakdown of how these changes will impact you:

 

• Lower Gas Fees: One of the most noticeable improvements will be the reduction in gas fees, especially on Layer 2 networks like Arbitrum and Optimism. These networks already offer cheaper transactions, with ETH transfers currently costing around $0.24 to $0.78. After The Surge, transaction fees could drop even further, making it more affordable to send ETH or interact with decentralized applications (dApps). Lower gas fees mean users can make frequent transactions without worrying about high costs during network congestion.

• Improved dApp Performance: Developers will benefit from faster transaction speeds, allowing them to build more complex and feature-rich dApps. Whether you’re a developer creating a DeFi platform, a blockchain game, or an NFT marketplace, the improved scalability from The Surge means smoother operations. Faster transactions will also reduce delays and improve user satisfaction, encouraging innovation across various sectors like decentralized finance (DeFi) and gaming.

• Greater Interoperability: Interoperability—the ability of different networks to work together—will also improve. Moving tokens and assets between Layer 2 networks and the Ethereum mainnet will become seamless. Users won’t need to rely on complicated bridges to transfer assets between networks. Instead, Ethereum will feel like a single, unified ecosystem, where interacting with dApps and moving funds across different layers will be as easy as using a single network.

These improvements make Ethereum more user-friendly and developer-friendly, fostering an ecosystem where both casual users and builders can thrive. Whether you are transferring funds, developing applications, or exploring new projects, The Surge will bring faster, cheaper, and more accessible blockchain services to the Ethereum community.

 

Scaling the Ethereum network increases the complexity of maintaining security. As rollups become more widely used, ensuring their trustlessness and robustness is crucial. Rollups rely on cryptographic proofs to confirm transactions, which must remain secure against potential vulnerabilities.

 

Vitalik Buterin has also highlighted the long-term risk posed by quantum computing. Ethereum developers are already exploring quantum-resistant cryptography to future-proof the network.

 

After The Surge, Ethereum will continue its roadmap toward full Danksharding. This phase will introduce complete data sharding, further increasing scalability. Other upcoming upgrades include:

 

• The Splurge: Focuses on miscellaneous improvements like better gas pricing and transaction formats.

• The Verge: Enhances the efficiency of Ethereum’s consensus mechanism by implementing stateless clients.

• The Purge: Optimizes the network by reducing unnecessary data and improving node performance.

Ethereum's long-term vision aims to create a blockchain that can support millions of users worldwide without compromising security or decentralization.

 

Learn more about Danksharding - Ethereum’s full sharding upgrade. 

 

Ethereum’s The Surge marks a significant step forward in its journey toward becoming a global, decentralized platform. By focusing on rollups, data availability, and Layer 1 improvements, Ethereum aims to handle over 100,000 TPS while maintaining its core principles of decentralization and security.

 

As these upgrades roll out, users will benefit from faster transactions and lower fees, while developers can build more innovative dApps. However, rapid scalability also introduces risks. Potential challenges include vulnerabilities in Layer 2 solutions, temporary network disruptions, and fluctuating gas fees during the transition. Developers and users must stay informed and adapt as Ethereum evolves.

 

With The Surge, Ethereum sets the stage for a scalable, efficient, and secure blockchain future. But as with any major upgrade, careful monitoring and ongoing adjustments will be essential to ensure long-term success. This is just the beginning of Ethereum’s ambitious path forward.

 

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