On December 3, 2025, the Ethereum network successfully activated the
Fusaka hard fork
, marking its second major upgrade of the year following Pectra. This upgrade represents a pivotal strategic shift for the world's leading smart contract platform, moving beyond isolated improvements to execute a
cohesive vision
centered on three long-term goals: scaling Layer 1 (L1), scaling data availability (Blobs), and radically improving user experience. Named from the combination of the execution layer upgrade "Fulu" and the consensus layer upgrade "Osaka," Fusaka is more than a routine protocol update. It is a direct response to the exponential growth of Layer 2 (L2) rollups and the increasing demand for blockchain scalability. By implementing groundbreaking technologies like Peer Data Availability Sampling (PeerDAS) and introducing smarter economic mechanisms, Fusaka lays a new foundation for Ethereum's future. It aims to make the network more scalable for developers, cheaper for users, and more robust and valuable as a global settlement layer. This article explores the mechanics, immediate benefits, and long-term implications of this transformative upgrade.
What Is the Ethereum Fusaka Upgrade?
Ethereum's journey has always involved regular updates to fix bottlenecks and add new capabilities. The Fusaka upgrade traces its roots back to the network's shift to
proof-of-stake with The Merge in 2022, and it builds on more recent upgrades such as
Dencun in 2024 and
Pectra in 2025. Developers have been planning this for a while, seeing it as the next logical move to handle growing activity without centralizing power.
The drive behind Fusaka stems from the need to balance scalability with keeping the network open and efficient. As apps and users multiply, the old ways of processing data just aren't cutting it anymore; they lead to higher costs and slower speeds. Fusaka aims to change that by rethinking data storage and verification, ensuring Ethereum stays competitive in a world full of fast blockchains
Key Objectives of Fusaka
Fusaka's development was guided by a unified set of objectives designed to dismantle Ethereum's primary bottlenecks systematically.
The first and foremost objective is to
radically scale data availability (DA). The introduction of Blobs with the 2024 Dencun upgrade created a cost-effective way for rollups to post data to Ethereum. However, with adoption from major L2s like Base and Arbitrum, Blob usage quickly approached the initial limit of 6 per block, threatening fee volatility and capping growth. Fusaka directly attacks this bottleneck by deploying PeerDAS, a technology that allows the network to safely increase Blob capacity by up to 8x without overburdening individual node operators.
The second objective is to increase Layer 1 throughput significantly. While L2s handle most user transactions, a performant and uncongested L1 is crucial for settlement, security, and certain types of applications. Fusaka achieves this by raising the default block gas limit, allowing each block to contain more computational work and complex transactions.
The third objective is to
improve network security and economic stability. This includes introducing execution-layer safeguards like a hard per-transaction gas cap to prevent resource exhaustion attacks and implementing a more sustainable fee market for Blobs to ensure the data availability layer provides reliable economic value to the network.
Finally, Fusaka aims to
enhance the end-user and developer experience through direct protocol improvements. This includes enabling modern Web3 authentication methods like passkeys and streamlining the protocol by removing outdated code, which ultimately leads to better client performance.
How the Fusaka Upgrade Works: PeerDAS and Beyond
The operational heart of the Fusaka upgrade is
Peer Data Availability Sampling (PeerDAS), implemented via EIP-7594. To understand its breakthrough, one must recognize the prior constraint: under the Dencun design, every Ethereum node had to download and store the full contents of every Blob in a block to verify data availability. This full replication model created a hard ceiling on scalability, as increasing Blobs would linearly increase the bandwidth and storage burden on all nodes, threatening decentralization.
PeerDAS revolutionizes this model through probabilistic sampling. It breaks each Blob of data into multiple smaller pieces called "cells" and organizes them into columns. Instead of downloading entire Blobs, each node only downloads and stores a small, random subset of these columns, initially as little as
one-eighth of the total data. Through a process involving erasure coding, the network can guarantee that if enough nodes perform this random sampling, the entire dataset is available and can be reconstructed if needed. This shifts the paradigm from "every node stores everything" to "the network collectively guarantees everything," dramatically reducing the load on individual participants while maintaining the same security guarantees.
This reduced load is what unlocks scalable capacity. With PeerDAS active, the network can safely begin a gradual process of increasing the number of Blobs per block. An initial follow-up parameter upgrade scheduled for December 9, 2025, is set to raise the limit, with a further increase planned for early January. This "Blob Parameter Only (BPO) fork" mechanism is a new tool that allows Ethereum to adjust Blob capacity responsively without executing a full hard fork.
Beyond PeerDAS, Fusaka incorporates several other critical EIPs:
-
EIP-7935 raises the default block gas limit to 60 million, directly increasing L1 transaction capacity.
-
EIP-7825 institutes a hard cap on the gas a single transaction can consume (16,777,216 gas), preventing mega-transactions from monopolizing a block and paving the way for parallel transaction execution.
-
EIP-7918 introduces a
reserve price for Blob fees, linking them to L1 execution gas costs. This prevents Blob fees from collapsing to near-zero (as had been happening), ensuring the DA layer provides sustainable, predictable revenue and contributes to ETH's economic security.
-
EIP-7951 adds native support for the secp256r1 elliptic curve, the standard used by WebAuthn, Apple's Secure Enclave, and Android keystores. This enables seamless integration of biometric logins (like Face ID) and hardware security keys directly into Ethereum wallets.
Benefits of the Ethereum Fusaka Upgrade
For Users: Lower Fees and a Modern Experience
The most immediate benefit for end-users will be
lower and more stable transaction fees on Layer 2 networks. As PeerDAS enables more Blob capacity, rollups like Arbitrum, Optimism, and Base will face less competition for this data space and can post their transaction batches more affordably. Analysis suggests L2 fees could decrease by
40-60%as a result of this increased data bandwidth. Furthermore, the user experience is elevated beyond cost. The native support for secp256r1 cryptography will allow users to access wallets and dApps using the familiar, secure biometrics of their phones, lowering the barrier to entry and reducing reliance on vulnerable seed phrases.
For Developers and the Ecosystem: Rollups Supercharged
For developers, particularly those building L2 solutions or dApps dependent on them, Fusaka is a catalyst. The supercharging of rollups through cheaper and more abundant data availability means L2s can support higher transaction volumes and more data-intensive applications, such as on-chain gaming or social media, without cost concerns.Features like
deterministic proposer lookahead (EIP-7917) enable new paradigms like "based rollups," where Ethereum validators can sequence L2 transactions, and "pre-confirmations," offering users faster guarantees.Additionally, the per-transaction gas cap and other execution optimizations make the L1 environment more predictable and secure for deploying complex smart contracts.
PeerDAS: A Data-Scaling Breakthrough for Node Operators
PeerDAS is a breakthrough not just in output but in operational efficiency. By allowing nodes to sample instead of store full Blobs, it
lowers the hardware burden on validators and node operators. This is crucial for preserving and enhancing Ethereum's decentralization. By keeping node requirements accessible, more participants can join the network, strengthening its resilience and censorship resistance. As Ethereum co-founder Vitalik Buterin stated, the implementation of PeerDAS achieves a long-held "dream" for the network, fulfilling the original vision of sharding for data availability.
Bigger Blocks and Smarter Upgrades
The increase in the block gas limit directly translates to higher L1 throughput, meaning the mainnet can process more activity natively during periods of high demand. Perhaps more strategically significant is the establishment of the BPO fork mechanism. This allows the Ethereum community to
dial Blob capacity up or down in response to real-time network demand and performance, creating a flexible and agile scaling path without the complexity of a full hard fork. This represents a smarter, more responsive approach to protocol evolution.
Strengthening Ethereum's Economic Foundation
Finally, Fusaka addresses critical economic feedback loops. The pre-Fusaka Blob fee market was broken, with fees often at 1 wei, contributing almost nothing to network security or ETH's deflationary burn. EIP-7918's fee floor rectifies this by ensuring that L2 usage translates into meaningful, stable revenue for the base layer. This strengthens the
value accrued to ETH, aligning the success of scaling L2s with the economic security and sustainability of Ethereum itself.
Conclusion
The Ethereum Fusaka upgrade is a masterclass in holistic protocol engineering. It is not merely a collection of technical patches but a coordinated leap forward in scalability, security, and usability. By successfully deploying PeerDAS, Fusaka breaks the data availability bottleneck that was poised to constrain the entire L2 ecosystem, ensuring that rollups can continue to grow and drive down costs for users.
Simultaneously, by boosting L1 capacity, instituting smarter economic mechanisms, and integrating modern user authentication, Fusaka strengthens the core protocol on multiple fronts. It demonstrates a maturing Ethereum development process capable of rapid, biannual upgrades that execute a clear strategic vision. While the full effects on fees and performance will unfold over the coming months as Blob capacity is gradually increased, the foundation is now solidly in place. Fusaka successfully bridges Ethereum's present needs with its long-term roadmap, setting the stage for the next evolution toward a global, scalable, and user-friendly decentralized platform.
References:
The Blockbeats. (2025, December 4).
Vitalik: Fusaka Upgrade Enables PeerDAS to Successfully Implement Ethereum Sharding, Focus on Stability Optimization in the Next Two Years.
https://en.theblockbeats.news/flash/323010
CoinCatch Team
Disclaimer:
Digital asset prices carry high market risk and price volatility. You should carefully consider your investment experience, financial situation, investment objectives, and risk tolerance. CoinCatch is not responsible for any losses that may occur. This article should not be considered financial advice.