The Ethereum network is the engine of decentralized finance (DeFi), NFTs, and thousands of applications. For investors and developers in Vietnam, understanding its evolution is not just an advantage—it is essential for navigating the future of digital assets. The most significant event in Ethereum’s history was "The Merge," but this was only the first step. The true revolution is happening now, with an upgrade phase known as "The Surge."
This guide will break down what The Surge means for Ethereum and why it is a critical development for every crypto enthusiast in Vietnam. Whether you are a newcomer to the space, a seasoned trader on platforms like HIBT, or a builder creating the next wave of Web3 applications, this upgrade will redefine what is possible on the blockchain.
Get ready to explore the next chapter of Ethereum’s journey.
A Quick Recap: What Was The Ethereum Merge?
To understand The Surge, we first need to remember what The Merge accomplished. The Merge was the historic event in September 2022 when the Ethereum blockchain transitioned its consensus mechanism from Proof of Work (PoW) to Proof of Stake (PoS).
- Proof of Work (PoW): This was the original system, similar to Bitcoin’s, where "miners" used powerful computers to solve complex mathematical puzzles to validate transactions and create new blocks. It was secure but incredibly energy-intensive and slow.
- Proof of Stake (PoS): The new system replaces miners with "validators." Validators lock up, or "stake," a certain amount of ETH to participate in securing the network. In return for validating transactions and proposing new blocks, they earn rewards.
The primary outcome of The Merge was a massive reduction in energy consumption—over 99.95%. This made Ethereum a much more sustainable and ESG-friendly platform, attracting a new wave of institutional and environmentally conscious investors.
However, The Merge was never intended to solve Ethereum's biggest challenge: scalability. It did not make transactions significantly faster or cheaper. That is the mission of the next phase in Ethereum's roadmap: The Surge.
Introducing The Surge: Ethereum’s Answer to Scalability
If The Merge was about changing the engine of the car, The Surge is about building a multi-lane superhighway for it to drive on. The Surge is the name given to a series of upgrades focused on dramatically increasing Ethereum's scalability and throughput (the number of transactions it can process per second).
The goal is to take Ethereum from its current capacity of around 15-30 transactions per second (TPS) to a future state of over 100,000 TPS. This is a monumental leap that will make Ethereum capable of handling global-scale applications with ease.
The core technology powering The Surge is sharding, specifically a version known as Danksharding.
Deconstructing Danksharding: The Engine of The Surge
Danksharding, named after Ethereum researcher Dankrad Feist, is a new and highly efficient approach to scaling the blockchain. To understand it, we must first understand the concept of sharding.
What is Sharding?
Imagine a single, congested highway trying to handle all the traffic in a major city like Ho Chi Minh City. Sharding is like building 64 new parallel lanes next to the main highway. The traffic can be distributed across all these lanes, dramatically increasing the total number of cars that can pass through at any given time.
In blockchain terms, sharding splits the network into smaller, more manageable pieces called "shards." Each shard can process its own set of transactions and data independently. This parallel processing is what unlocks massive scalability.
How is Danksharding Different?
The original plan for Ethereum was to implement execution sharding, where each shard would have its own set of smart contracts and accounts. However, this approach proved to be incredibly complex.
Danksharding simplifies this with a new focus: data sharding. Instead of creating 64 separate mini-blockchains, Danksharding focuses on creating a highly efficient system for storing and accessing data. It transforms Ethereum into a powerful data availability layer, perfectly optimized for Layer 2 scaling solutions (rollups).
The key innovation of Danksharding is the introduction of "blobs."
What Are Blobs? The Secret to Cheaper Layer 2 Transactions
"Blob" stands for Binary Large Object. A blob is essentially a large, temporary packet of data that can be attached to an Ethereum transaction. The introduction of blobs was part of the Proto-Danksharding upgrade (also known as EIP-4844), which went live in early 2024.
Here’s why blobs are a game-changer for scalability:
- Separate from the EVM: Unlike previous methods where Layer 2s posted transaction data in the "calldata" field, blobs exist in a separate space. The Ethereum Virtual Machine (EVM) does not need to process the data inside a blob. This makes it much cheaper to post data on-chain.
- Temporary Storage: Blob data is not stored on the Ethereum mainnet forever. It is automatically pruned (deleted) after a period of about a month. This is crucial for preventing "state bloat" and keeping the blockchain lean and efficient.
- Dedicated Fee Market: Blobs have their own fee market, separate from the regular gas market. This means that when Layer 2 activity is high, it doesn't drive up gas prices for regular users on the mainnet.
For the average user, the impact is simple and profound: transactions on Layer 2 rollups like Arbitrum, Optimism, and Base have become 10 to 100 times cheaper.
Case Study: The Impact of Proto-Danksharding (EIP-4844)
The implementation of Proto-Danksharding in early 2024 provides a clear and powerful case study of The Surge's impact.
- The Event: On March 13, 2024, the "Dencun" hard fork went live, activating EIP-4844 and introducing blobs to the Ethereum mainnet.
- The Immediate Aftermath: Within hours, major Layer 2 networks integrated the new blob transaction type. The results were dramatic.
- Optimism: Average transaction fees dropped from ~$0.20 to less than $0.01.
- Arbitrum: Fees for a simple token swap fell from ~$0.50 to just a few cents.
- Base: Coinbase's Layer 2 network saw fees plummet, leading to a surge in user activity and transaction volume.
- The Market Impact: The drastic reduction in fees catalyzed a new wave of activity on Layer 2s. Decentralized exchanges saw higher volumes, new NFT collections were minted at a fraction of the previous cost, and on-chain gaming became more viable. It proved that making transactions cheaper directly leads to greater adoption and innovation. For traders on platforms like HIBT, this meant more opportunities to interact with DeFi protocols without being burdened by high fees.
This successful rollout of Proto-Danksharding was a major milestone. It provided tangible proof that The Surge's roadmap could deliver on its promise of scalability.
The Full Vision: From Proto-Danksharding to Full Danksharding
Proto-Danksharding was the first step, providing the framework and data format (blobs) for a sharded future. The next and final step is Full Danksharding.
Full Danksharding will fully implement the 64 data shards, massively increasing the amount of "blobspace" available for Layer 2s. While Proto-Danksharding added a small amount of data space (around 0.375 MB per block), Full Danksharding will increase this to approximately 16 MB per block.
This exponential increase in data availability will make Layer 2 transactions even cheaper and will enable Ethereum to securely scale to 100,000 TPS and beyond. This will solidify Ethereum's "rollup-centric roadmap," where the main chain acts as the secure settlement and data availability layer, while Layer 2s handle the bulk of transaction execution.
Other key components of the full roadmap include:
- Proposer-Builder Separation (PBS): This separates the role of building a block from proposing a block. It helps to make the network more decentralized and mitigates the negative effects of Maximal Extractable Value (MEV).
- Verkle Trees: A new, more efficient data structure that will help to manage state growth and make it easier for validators to run nodes.
- Statelessness: A long-term goal where validators will not need to store the entire Ethereum state to validate blocks, further reducing hardware requirements and enhancing decentralization.
Why The Surge Matters for Vietnamese Cryptocurrency Enthusiasts
Vietnam is a global leader in cryptocurrency adoption, with a young, dynamic population that is eager to explore the possibilities of Web3. The Surge is not just a distant technical upgrade; it has direct and tangible implications for users, developers, and investors across the country.
1. Unlocking Mass Adoption for DeFi and GameFi
DeFi and GameFi are two of the most popular crypto use cases in Vietnam. The high transaction fees on Ethereum have historically been a major barrier to entry.
- Affordable DeFi: With The Surge, interacting with leading DeFi protocols like Uniswap, Aave, and Lido on Layer 2 becomes incredibly cheap. Vietnamese users can now swap tokens, lend assets, and earn yield without worrying about gas fees eating into their returns. This opens up the world of DeFi to a much broader audience.
- Viable Blockchain Gaming: On-chain games require frequent, small transactions. The Surge makes this model economically feasible. Vietnamese game developers can now build complex, fully on-chain gaming experiences, and players can enjoy them without facing high costs for every in-game action. This could spark a boom in the local GameFi development scene.
2. Empowering Vietnamese Developers and Entrepreneurs
The tech hubs of Ho Chi Minh City, Hanoi, and Da Nang are home to a growing number of blockchain developers. The Surge makes Ethereum a far more attractive platform for them to build on.
- Building Scalable dApps: Developers can now build applications designed for millions of users, confident that the underlying blockchain can handle the load. This is crucial for creating consumer-facing applications like social media, content platforms, and real-world asset (RWA) tokenization systems.
- New Application Possibilities: The massive data capacity unlocked by Full Danksharding opens the door to entirely new types of on-chain applications that were previously impossible due to data storage costs.
- Competitive Edge: By building on a highly scalable and secure platform like Ethereum, Vietnamese startups can compete on a global stage, attracting users and investment from around the world.
3. A More Secure and Valuable Investment
For the millions of Vietnamese who hold ETH as a long-term investment, The Surge is a powerful bullish catalyst.
- Increased Utility: A more scalable Ethereum means more users and more applications, which drives demand for ETH to pay for transaction fees (even on Layer 2s, a portion of the fee is paid to the mainnet).
- Enhanced Network Effects: As more activity moves to Ethereum's Layer 2 ecosystem, its position as the dominant smart contract platform is solidified. This creates a powerful network effect that is difficult for competitors to overcome.
- Future-Proofing the Network: The Surge demonstrates that Ethereum is committed to a long-term roadmap of continuous improvement. This provides investors with confidence that the network can adapt and evolve to meet future challenges. Interacting with this evolving ecosystem through a secure platform like HIBT allows investors to capitalize on these long-term trends.
How to Get Ready for The Surge
The Surge is not a single event but an ongoing process. As a user, the best way to experience its benefits is to start using Ethereum's Layer 2 ecosystem.
Step 1: Get a Wallet
You'll need a self-custody wallet like MetaMask, Rabby, or a wallet integrated into a trusted exchange platform.
Step 2: Bridge Your Assets
To use a Layer 2, you need to "bridge" your assets (like ETH or stablecoins) from the Ethereum mainnet to the Layer 2 network of your choice (e.g., Arbitrum, Optimism, Base). You can use an official bridge provided by the L2 project or a third-party bridge aggregator.
Step 3: Explore the L2 Ecosystem
Once your assets are on the Layer 2, you can start interacting with dApps. You'll notice immediately that transactions are significantly faster and cheaper. You can find a directory of dApps on the official websites of the Layer 2 projects.
Step 4: Use a Secure and Efficient On-Ramp
For users in Vietnam, having a reliable way to buy crypto with VND is crucial. Platforms like HIBT provide easy on-ramps, allowing you to purchase assets and send them to your wallet to begin your Layer 2 journey.
Conclusion
The Ethereum Merge laid the foundation for a more sustainable and secure blockchain. Now, The Surge is building upon that foundation to deliver on the long-awaited promise of scalability. Through innovative upgrades like Proto-Danksharding and the introduction of blobs, Ethereum is transforming into a high-throughput settlement layer capable of supporting a global ecosystem of decentralized applications.
For the vibrant crypto community in Vietnam, The Surge is a game-changer. It makes DeFi and GameFi more accessible, empowers local developers to build world-class applications, and enhances the long-term value proposition of ETH as a core digital asset.
The future of a scalable, decentralized internet is being built on Ethereum, and The Surge is paving the way. This is your invitation to be part of it. Get started on your Layer 2 journey and explore the limitless possibilities of a truly scalable Ethereum.
To begin trading and exploring the vast opportunities within the Ethereum ecosystem, sign up and start your journey on a trusted platform. Join HIBT today.
About the Author
Dr. Pham Van Bao
Protocol Architect & Decentralized Systems Specialist
Dr. Pham Van Bao is a leading voice in blockchain scalability and protocol design. He has published 18 peer-reviewed papers on topics ranging from consensus mechanisms to Layer 2 scaling solutions. As the lead architect for the "Saigon Scaling Initiative," a project focused on blockchain education and development, Dr. Bao has audited several major smart contract systems and is deeply committed to empowering the next generation of Web3 builders in Vietnam.