The Bit Gazette

Tag: network upgrade

Ethereum completes Hoodi testnet fork ahead of December Fusaka mainnet upgrade

Ethereum completed the Hoodi testnet fork on October 28, marking the final preparatory phase before the Fusaka upgrade launches in December with expanded blob capacity and new data structures designed to improve Layer-2 scalability, according to Nethermind, a leading Ethereum execution client.

The testnet activation represents the final preparatory phase before Fusaka’s mainnet rollout in December, solidifying Ethereum’s progress toward enhanced scalability and network efficiency.

Despite the milestone, Ether (ETH) prices dipped over 2% to around $4,000, as traders remained cautious amid the U.S. Federal Open Market Committee (FOMC) meeting, which could influence global liquidity and risk sentiment. Historically, risk assets such as ETH exhibit volatility around interest rate decisions.

“The Hoodi Fork marks a key milestone on the road to Fusaka,” Nethermind developers said in a post on X.

The Ethereum fusaka upgrade is widely expected to usher in significant protocol changes that expand data capacity and optimize Layer-2 interactions, continuing Ethereum’s trajectory as the most decentralized and developer-active blockchain.

Ethereum fusaka upgrade builds on Pectra’s foundation

The Hoodi Fork follows earlier successful test deployments on Sepolia and Holesky networks earlier in October. Sepolia’s upgrade was executed on October 14, while Holesky testing began on October 1 before being decommissioned after verification.

The Ethereum fusaka upgrade succeeds the Pectra upgrade, which went live on the mainnet in May 2025. Pectra introduced pivotal improvements, including streamlined validator operations, account abstraction via EIP-7702, and increased blob capacity per block reducing Layer-2 transaction costs and boosting throughput.

Blobs, short for “binary large objects,” enable rollups to post transaction data more efficiently onto Ethereum, effectively lowering fees and expanding the network’s capacity. With Fusaka, developers plan to further increase Ethereum’s blob capacity and integrate new cryptographic data structures to improve scalability.

Ethereum’s roadmap is entering its next phase with Fusaka, said Christine Kim, Research Analyst at Galaxy Digital. Each upgrade brings us closer to a modular, scalable architecture capable of supporting global-scale applications.

Fusaka to introduce blob parameter forks and Verkle Trees

The Ethereum fusaka upgrade will be implemented in three key stages, beginning with mainnet activation on December 3. The initial rollout will introduce Peer Data Availability Sampling (PeerDAS) through EIP-7594, a feature designed to improve how nodes access and verify Layer-2 data.

Fusaka will also integrate Verkle Trees, an advanced data structure that offers more compact and efficient state proofs, allowing nodes to verify network state with less computational load. This upgrade is complemented by a higher block gas limit, which will improve overall throughput at the base layer.

Two subsequent Blob Parameter Only (BPO) forks will follow. The first, scheduled for December 17, will raise the number of blobs per block to 10 (maximum 15). The second, set for January 7, 2026, will further increase the blob count to 14 (maximum 21), effectively doubling Ethereum’s data capacity and reinforcing its Layer-2 scalability.

“These iterative forks are designed to ensure stability while steadily increasing network efficiency,” said Tim Beiko, Ethereum Foundation core developer. “The gradual approach reduces upgrade risk and provides time for ecosystem adaptation.”

Developers and traders await mainnet launch

The Ethereum fusaka upgrade is the culmination of years of development focused on scalability and decentralization. Following the successful Hoodi testnet, developers will now monitor network metrics, ensuring stability ahead of the December mainnet deployment.

While ETH’s price remained subdued amid macroeconomic uncertainty, analysts believe the upgrade could strengthen Ethereum’s long-term fundamentals. By boosting blob capacity, improving data sampling, and implementing Verkle Trees, Fusaka sets the stage for future performance gains and reduced transaction costs.

The Ethereum fusaka upgrade represents a critical infrastructure step toward mass adoption, said Alex Thorn, Head of Research at Galaxy Digital. Ethereum continues to set the standard for open innovation in blockchain.

The Ethereum Foundation has confirmed its long-term commitment to iterative network enhancements, aligning with Ethereum’s broader “rollup-centric roadmap” which is an approach that decentralizes scaling through Layer-2 ecosystems while maintaining the integrity of the base layer.

As the Ethereum fusaka upgrade moves toward mainnet activation, it will mark one of the most significant technical advancements since The Merge, reinforcing Ethereum’s position as the backbone of decentralized finance and Web3 innovation.

10/29/2025
Vitalik Buterin introduces GKR protocol for faster zero-knowledge proofs on Ethereum

Ethereum co-founder Vitalik Buterin introduced the GKR protocol on October 20, a proof aggregation system that validates large-scale computations without requiring costly intermediate commitments. The Goldwasser–Kalai–Rothblum (GKR) method processes data in logarithmic time, potentially offering faster verification than existing ZK-SNARKs and STARKs used across Ethereum’s privacy infrastructure.

The GKR protocol operates by validating extensive computational workloads with minimal on-chain overhead. It achieves this by reducing the need for costly intermediate commitments and processing data in logarithmic time. This innovation allows for faster and more scalable proofs compared to conventional systems such as ZK-SNARKs and STARKs, which are the backbone of Ethereum’s existing privacy and verification mechanisms.

“The GKR protocol represents an elegant step toward simplifying proof aggregation without sacrificing security,” Buterin wrote in his tutorial. “It’s a natural fit for proving large batches of hashes and neural network-style computations.”

Experts say the protocol could significantly reduce the computational load on Ethereum validators, making zero-knowledge-based systems more practical for everyday use in decentralized applications and rollups.

A leap in Ethereum’s proof efficiency

At its core, the GKR protocol addresses one of Ethereum’s most pressing technical challenges balancing scalability with verification accuracy. The system allows provers to skip intermediate commitments, which traditionally add cost and delay in proof generation. As a result, the network can handle larger computations with reduced gas fees and faster confirmation times.

While the GKR protocol itself is not a zero-knowledge (ZK) system, Buterin emphasized that it can be “wrapped” within ZK-SNARK or STARK layers to ensure privacy. This flexibility means developers can integrate GKR into privacy-preserving frameworks while still benefiting from its speed and efficiency.

In his blog post, Buterin acknowledged the contributions of cryptographers Lev Soukhanov, Zhenfei Zhang, and Zachary Williamson, whose reviews helped refine the protocol’s mathematical design.

“Scalability is no longer just about throughput; it’s about verifiability,” wrote Zachary Williamson, co-founder of privacy protocol Aztec, in a related commentary. “The GKR protocol creates new pathways for recursive proofs that are both scalable and developer-friendly.”

For Ethereum developers, this breakthrough could accelerate the rollout of layer-2 solutions, such as optimistic and zero-knowledge rollups, by simplifying how proofs are verified across chains.

Supporting Ethereum’s ‘Lean Network’ vision

The release of the GKR protocol is aligned with Buterin’s broader vision for a “Lean Ethereum” as a more efficient, modular, and quantum-resistant blockchain ecosystem. In recent months, Buterin has proposed several related innovations aimed at reducing network complexity and improving long-term scalability.

These include interoperability tools for cross-layer communication, the development of partial stateless clients to minimize node storage, and governance systems powered by zero-knowledge proofs. The GKR protocol acts as a missing piece in this puzzle, providing a lightweight mechanism to aggregate and verify proofs across multiple execution layers.

Ethereum’s cryptographic backbone is evolving toward greater simplicity and efficiency, said Dr. Li Cheng, a blockchain researcher at the University of Singapore. The GKR protocol could become central to Ethereum’s proof aggregation pipeline, helping realize Buterin’s long-term goal of scalable, verified computation.

The protocol’s recursive structure could also enable multi-layer verification systems, where complex decentralized applications (dApps) can confirm thousands of transactions in a single proof. This would reduce blockchain congestion and enhance user experience across the ecosystem.

A milestone for blockchain and AI integration

Beyond Ethereum, the GKR protocol holds significant implications for the intersection of blockchain and artificial intelligence. Its capacity to verify neural network-style computations makes it a promising tool for AI model validation and privacy-preserving machine learning.

As Buterin explained, The same principles that make the GKR protocol efficient for blockchain proofs also make it viable for proving computations in AI systems especially where transparency and verifiability are critical.

Industry observers view this as a step toward bridging on-chain computation and AI model integrity, two rapidly converging fields. Developers could use the GKR protocol to create decentralized AI verification layers, ensuring algorithmic accountability without exposing proprietary data.

With experimentation already underway in Ethereum’s developer community, GKR’s modular design is expected to inspire a new wave of applications built around recursive, efficient, and privacy-compatible verification.

Toward Ethereum’s next evolution

As Ethereum continues to evolve, the GKR protocol represents one of its most significant theoretical advancements since the introduction of ZK-based scaling. Its emphasis on proof efficiency, reduced overhead, and interoperability with privacy frameworks aligns with Ethereum’s broader roadmap for quantum resistance and mass scalability.

For developers, GKR could redefine what’s possible in trustless verification, powering everything from decentralized rollups to AI-driven smart contracts. For users, it may eventually translate into faster transactions, lower costs, and a more secure blockchain ecosystem.

The GKR protocol is more than an optimization as it’s an architectural shift, said Dr. Soukhanov, one of the reviewers credited by Buterin. If successfully implemented, it could make verifiable computation truly scalable for the first time.

As Ethereum developers begin integrating GKR concepts into upcoming rollup frameworks and zkEVM designs, Buterin’s latest contribution could become a cornerstone of the network’s next-generation scalability model.

10/21/2025
Ethereum’s $15K target gains traction as Fusaka upgrade promises cheaper, faster transactions

Ethereum’s Pectra upgrade, scheduled for December 2025, could mark one of the network’s most significant technical milestones by introducing PeerDAS (Peer Data Availability Sampling), a system designed to drastically reduce transaction costs and improve scalability for layer-2 rollups.

According to a recent VanEck analysis, the upgrade represents a strategic shift that could position Ethereum as the dominant settlement layer for decentralized finance, with some analysts projecting the improvements could drive ETH toward $15,000.

PeerDAS and rollups: The backbone of Ethereum’s new infrastructure

At the core of the Ethereum Fusaka Upgrade lies PeerDAS, a breakthrough mechanism that drastically optimizes data sampling and block verification. By allowing validators to verify transactions without processing full blocks, PeerDAS will expand blob capacity, improve rollup throughput, and lower transaction fees which is a long-standing barrier to Ethereum adoption.

Rollup networks like Arbitrum, Optimism, and Base stand to gain the most from these improvements, as they rely on Ethereum for final settlement. With reduced data overhead, these rollups can operate more efficiently, passing cost savings directly to users.

VanEck analysts suggest this upgrade could increase Ethereum’s dominance as the base layer for decentralized applications (dApps) and DeFi protocols.

By cutting data overhead, the Ethereum Fusaka Upgrade makes Ethereum the natural settlement currency of the rollup economy, said Matthew Sigel, Head of Digital Assets Research at VanEck. We see ETH transitioning from a utility token to the backbone of Web3’s financial layer.

ETH’s macro correlation: A silent rally in the making

Market watchers are also tying Ethereum’s next move to global liquidity patterns. Analyst Tom Tucker noted a growing correlation between Ethereum and M2 money supply, the broad measure of global liquidity. With central banks expanding balance sheets again, ETH could emerge as a hedge against fiat depreciation.

“Doubters are gonna doubt, but this looks like a solid opportunity,” Tucker wrote on X. “As global liquidity rises, the Ethereum Fusaka Upgrade could push ETH toward a $15,000 valuation.”

Source: Chart from Tom Tucker on X

Economist and trader MikybullCrypto added that Ethereum’s trajectory mirrors that of the Russell 2000 Index, a small-cap stock benchmark known for tracking the credit cycle. The Russell recently hit an all-time high as a signal, Mikybull says, of capital rotation into higher-risk assets like Ethereum and altcoins.

This renewed capital flow could set the stage for ETH’s next rally, particularly as Fusaka makes the network cheaper and more scalable for institutional-grade applications.

Fusaka’s broader implications: From DeFi to global finance

Beyond price speculation, the Ethereum Fusaka Upgrade could redefine how blockchain integrates with traditional finance. Lower transaction costs and faster processing could attract more enterprises, fintech startups, and governments looking to deploy blockchain-based payment or settlement systems.

VanEck’s report also suggests that Fusaka strengthens Ethereum’s case as a monetary network, not just a smart contract platform. As gas fees drop, ETH’s utility and velocity as a currency increase which is a development that could anchor Ethereum as the “internet’s base money” for the decentralized era.

“Ethereum is no longer just a programmable chain; with Fusaka, it’s becoming a programmable economy,” said David Hoffman, co-founder of Bankless.

For investors, developers, and policymakers, the message is clear: the Ethereum Fusaka Upgrade represents more than a technical evolution as it’s a systemic shift that could redefine the power balance between decentralized and centralized financial systems.

Conclusion: The path ahead for Ethereum and Web3

As the December rollout approaches, anticipation is mounting across crypto markets. The Ethereum Fusaka Upgrade could finally deliver on the network’s long-promised scalability, making transactions smoother, cheaper, and more accessible worldwide.

If successful, Fusaka may not only cement Ethereum’s role as the financial infrastructure of Web3 but also propel ETH into a new macroeconomic narrative as one driven by digital value, data sovereignty, and decentralized finance at a global scale.

With major players like VanEck, Optimism, and Arbitrum preparing for the transition, the next few months could mark the beginning of Ethereum’s most transformative chapter yet.

10/07/2025

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