Ethereum is About to Enter The Surge Phase: What Will It Change?

Ethereum is preparing for a major transition with the Surge phase—a significant step to increase the network’s processing capacity to over 100,000 transactions per second. This is not merely a technical upgrade but a turning point to make Ethereum a platform capable of serving millions of users worldwide while maintaining decentralization and security.

The Surge: Why Does Ethereum Need It?

Currently, Ethereum processes about 15–30 transactions per second on Layer 1. While this number supports many applications, during network congestion, it causes bottlenecks and skyrocketing gas fees. The Surge is specifically designed to address this issue.

Vitalik Buterin, the founder of Ethereum, introduced this phase as part of a long-term roadmap toward a unified ecosystem where Layer 1 and Layer 2 operate seamlessly together. Instead of separate blockchains, they will form a single system, allowing users to move assets easily, like sending ETH between two wallets.

Key Technologies Driving The Surge

Layer 2 Rollups: Scaling Foundations

Rollups act as a “shipping system”—they bundle multiple off-chain transactions (outside the main blockchain) and send a summary to Ethereum. This reduces load on the main network and enables faster, cheaper transactions.

There are two main types of Rollups:

Optimistic Rollups assume all transactions are valid unless someone reports an error. This approach is fast because it doesn’t verify each transaction immediately.

ZK-Rollups use zero-knowledge proofs (zero-knowledge proofs) to confirm transactions instantly, providing immediate security.

Layer 2 growth has been impressive: the total value locked (TVL) in Ethereum’s Layer 2 solutions increased by 216% over the past year, surpassing $38 billion. This clearly indicates user readiness to adopt scaling solutions.

Data Availability Sampling (DAS) : Data Optimization

A major challenge is how each node can verify data without storing the entire dataset. DAS solves this by allowing nodes to check only a portion of the data, then all nodes verify the entire dataset collectively.

PeerDAS uses peer-to-peer networks to distribute work: each node checks a small part, ensuring efficiency without requiring large storage.

2D DAS is an advanced version that verifies not only data chunks but also how they link together, enhancing security.

With DAS, rollups can process more transactions without overloading Ethereum, balancing speed, cost, and decentralization.

Proto-Danksharding (EIP-4844) : The First Step

The Dencun upgrade in Q1 2024 introduces Proto-Danksharding, a foundational step toward full Danksharding. Instead of storing data permanently on-chain, temporary “blobs” of data are used, reducing network pressure while still enabling verification.

This forms the basis for subsequent improvements in the Surge phase.

Roadmap in Practice: From Now Until 2026 and Beyond

Q1 2024 – Proto-Danksharding Launch
The Dencun upgrade brings the first improvements, allowing Layer 2 solutions to better utilize data availability.

2024-2025 – Full Rollup Expansion
Layer 2 solutions deploy updates, improving cryptographic proof systems like SNARKs. DAS is expanded with PeerDAS and 2D DAS to support higher throughput.

Late 2025 – Layer 1 Optimization
Ethereum Object Format (EOF) is introduced for more efficient smart contract execution. Multi-dimensional gas fee proposals enable separating fees for computation, data, and storage.

2026 and Beyond – Full Danksharding
Transition from Proto-Danksharding to complete Danksharding, splitting Ethereum into many shards (shards) to further increase scalability.

Subsequently, advanced consensus mechanisms, including quantum-resistant cryptography, will be implemented to safeguard the network in the distant future.

Essential Layer 1 Upgrades

Although Layer 2 handles most transactions, Layer 1 still needs upgrades to keep pace:

Increasing Gas Limits: Allow more transactions per block. This must be carefully balanced to avoid raising node operation costs and reducing decentralization.

EVM Improvements: Ethereum Object Format (EOF) helps execute smart contracts more cheaply, lowering gas costs for developers and users.

Multi-Dimensional Fee Calculation: Instead of a single gas fee, users will pay based on actual resource usage—computation, data, or storage.

On-Chain Native Rollups: Rollups will operate directly within the Ethereum protocol, like multiple tracks at a station, each handling transactions independently, overall faster.

Practical Impact on Users and Developers

Significant Gas Fee Reduction

The most immediate effect will be lower gas fees. Currently, Layer 2 solutions offer cheaper transactions, with ETH transfer costs from $0.24 to $0.78. After The Surge, these costs could decrease further, making frequent transactions more economical.

Smoother dApp Operation

Developers will be able to build more complex applications without worrying about network congestion. Blockchain games, DeFi, NFTs—all will run faster and more smoothly, improving user experience.

Seamless Layer Interactions

Moving tokens between Layer 2 and the Ethereum mainnet will become simpler, without complex bridges. The entire ecosystem will function as a single cohesive unit.

Risks to Watch Out For

Rapid expansion brings challenges:

• Layer 2 Security: As rollups become widespread, ensuring their trustlessness and security is a top priority. Cryptographic vulnerabilities must be thoroughly tested.
• Quantum Threats: Future quantum computers could threaten current cryptography. Ethereum is researching quantum-resistant cryptography now.
• Fee Volatility During Transition: As upgrades roll out, gas fees may fluctuate, requiring users to adapt.

The Future: What Comes After The Surge?

The Surge is just part of the journey. The subsequent phases include:

• The Splurge: Optimizing gas fees and transaction formats.
• The Verge: Improving consensus efficiency via stateless clients.
• The Purge: Removing unnecessary data and enhancing node performance.

Full Danksharding will be the final milestone, splitting Ethereum into many parallel shards, unlocking the potential to process millions of transactions per second.

Later, advanced consensus mechanisms, including quantum-resistant cryptography, will be deployed to protect the network long-term.

Critical Layer 1 Upgrades Not to Miss

While Layer 2 handles most transactions, Layer 1 must upgrade:

Increasing Gas Limits: To process more transactions per block, carefully balanced to avoid increasing node costs and reducing decentralization.

EVM Improvements: Ethereum Object Format EOF makes smart contract execution cheaper, lowering gas costs.

Multi-Resource Fee Model: Users pay fees based on actual resource consumption—computation, data, storage.

On-Chain Rollups: Rollups will operate directly within Ethereum, like multiple tracks at a station, each handling transactions independently, overall faster.

Real-World Impact on Users and Developers

Significant Gas Fee Reduction

The most immediate effect will be lower gas fees. Currently, Layer 2 solutions offer cheaper transactions, with ETH transfer costs from $0.24 to $0.78. After The Surge, these costs could decrease further, making frequent transactions more economical.

Smoother dApp Operation

Developers will be able to build more complex applications without worrying about network congestion. Blockchain games, DeFi, NFTs—all will run faster and more smoothly, improving user experience.

Seamless Layer Interactions

Moving tokens between Layer 2 and the Ethereum mainnet will become simpler, without complex bridges. The entire ecosystem will function as a single cohesive unit.

Risks to Watch Out For

Rapid expansion brings challenges:

• Layer 2 Security: As rollups become widespread, ensuring their trustlessness and security is a top priority. Cryptographic vulnerabilities must be thoroughly tested.
• Quantum Threats: Future quantum computers could threaten current cryptography. Ethereum is researching quantum-resistant cryptography now.
• Fee Volatility During Transition: As upgrades roll out, gas fees may fluctuate, requiring users to adapt.

The Future: What Comes After The Surge?

The Surge is just part of the journey. The subsequent phases include:

• The Splurge: Optimizing gas fees and transaction formats.
• The Verge: Improving consensus efficiency via stateless clients.
• The Purge: Removing unnecessary data and enhancing node performance.

Full Danksharding will be the final milestone, splitting Ethereum into many parallel shards, unlocking the potential to process millions of transactions per second.

Later, advanced consensus mechanisms, including quantum-resistant cryptography, will be deployed to protect the network long-term.

Final Words

The Surge demonstrates Ethereum’s long-term vision—to create a truly global, scalable blockchain without sacrificing security or decentralization. Through Rollups, DAS, and Layer 1 improvements, Ethereum will become faster, cheaper, and more accessible.

However, like all major upgrades, continuous oversight and careful adjustments are necessary. This is just the beginning of a long but promising journey for Ethereum and the entire blockchain ecosystem.