The Ethereum Fusaka upgrade is arriving tomorrow! In simple terms, the main focus is that transaction fees on Layer 2 (L2) will see a significant reduction (potentially by 40-60%), which will be more noticeable for L2 users. This is thanks to the PeerDAS (EIP-7594) technology. Previously, every node had to store all data (blobs), but now PeerDAS helps distribute the pressure, with each node only storing a portion of the data. This could increase data capacity by up to 8 times or more, thereby reducing fees. Additionally, the capacity of Ethereum Layer 1 (L1) has been enhanced. The gas limit per block has been increased from 30M to 60M (EIP-7935 & EIP-7825), meaning more transactions can fit into a single block, leading to faster processing and lower fees. At the same time, EIP-7825 introduces a single transaction gas limit of 16.78 million gas to prevent large transactions from crashing the network. Another upgrade that impacts the general user experience is the ability to create wallets without memorizing seed phrases (EIP-7951). Seed phrases are still supported but are no longer mandatory. Instead, passkey support using the secp256r1 curve has been added, allowing users to leverage hardware signatures from their phones or computers. For most regular users, this makes using a wallet similar to logging into a Web2 platform. However, this seed-less wallet approach isn’t without drawbacks. It depends on the security of third-party hardware (the hardware security module of the device) and relies on recovery mechanisms built by third-party providers, among other factors.

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