While Ethereum has long been the backbone of decentralized finance, its journey toward handling millions of daily transactions just took a major leap forward. The Fusaka upgrade, which went live on Ethereum’s mainnet in December 2025, represents what Vitalik Buterin calls a significant breakthrough in Layer 2 scaling technology.
Buterin has been vocal about Fusaka’s importance, particularly emphasizing how it addresses data availability and verification challenges. Think of it like upgrading from a narrow bridge to a superhighway – suddenly, way more traffic can flow smoothly between different networks.
The upgrade introduces PeerDAS, a clever protocol that makes it easier for computers to verify data without breaking a sweat or burning through bandwidth.
The numbers tell an impressive story. Fusaka enables Layer 2 networks to handle up to 100,000 transactions per second while keeping fees low. This massive boost comes from EIP-7892, which allows safe increases in something called blob capacity.
Blobs might sound funny, but they’re serious business – they store the data that makes Layer 2 transactions possible. The upgrade also increases the block gas limit from approximately 36 million to 60 million, allowing for more complex smart contracts and higher transaction throughput.
What makes Fusaka special is the teamwork behind it. Engineers from OP Labs, Base, Soneium, and Ethereum client teams worked together like a well-coordinated orchestra.
This collaboration ensures the upgrade serves both Layer 1 and Layer 2 networks effectively, addressing the fragmentation that has puzzled users jumping between different Layer 2 platforms.
For ETH holders, Fusaka brings promising economic benefits. As more Layer 2 activity generates blob fees, Ethereum’s value capture mechanism strengthens.
Staking yields may rise as ETH holders take on sequencing roles for Layer 2 transactions, creating better alignment between different layers of the ecosystem. These benefits demonstrate the importance of steady income streams in cryptocurrency investments, similar to how traditional dividend-paying stocks provide reliable returns. Real-world usage data will guide the upcoming BPO forks planned for early 2026.
Buterin highlighted how this upgrade supports Ethereum’s long-term vision of decentralizing Layer 2 infrastructure while maintaining security.
The enhanced data layer keeps the network both secure and decentralized, proving that scaling doesn’t require sacrificing Ethereum’s core principles.
With the first BPO fork already implemented on December 9, 2025, Fusaka sets the foundation for even more exciting developments planned for 2026.
