Block space - Blob space: The new unit of computation on the internet
Trust industrialization: The missing native trust layer of the internet
A new logical computation and state management layer on the internet secured by crypto-economic and cryptographic security via protocols
Blockchain provides a new approach and paradigm for operating a state machine(ledger) on the internet via a peer-to-peer(P2P) network and a protocol, featuring several key properties:
Open: Anyone can read transaction data on the blockchain; the ledger is fully transparent and publicly accessible.
Public: Anyone can propose and broadcast transactions to be added to the ledger; participation is not restricted.
Permissionless: Anyone, anywhere in the world, can join the peer-to-peer network and participate as a node without needing authorization or approval.
Credibly neutral blockchains prioritize maintaining a trust-minimized environment for transactions and data management. This means the network operates without a single point of control, preventing censorship or manipulation of the blockchain's state. Key to this is the decentralization of power among participants, ensuring no single entity can dictate the rules or outcomes of transactions. In essence, a credibly neutral blockchain aims to provide a platform where trust is established through technology and code, rather than relying on the authority of a central entity. This fosters innovation and allows for the development of new applications and services without fear of censorship or manipulation.
Censorship Resistance: By design, credibly neutral blockchains make it difficult for anyone to censor or prevent transactions from being recorded on the network. This ensures that the blockchain remains open and accessible to all.
Trust minimization - eliminate trusted third parties as much as possible - disintermediation
Self-custody and Sovereignty: Essentially, humans will operate their values (assets) based on their interests without any restrictions from institutions or entities and without intermediaries.
Blockchain Ledger
The Blockchain is a state machine operated collectively by the peer-to-peer (P2P) network. It is referred to as ledger. A protocol—a defined set of rules—ensures that participants in the network coordinate and run the state machine in a decentralized manner, without the need for a centralized trusted third party. The computer program executed on the Blockchain is referred to as smart contract.
The blockchain relies on an execution engine—like Bitcoin Script in Bitcoin or the Ethereum Virtual Machine (EVM) in Ethereum—to compute state transitions according to an immutable computer program referred to as a smart contract and user transaction data.
The blockchain protocol defines the rules for selecting a block producer—the participant responsible for processing pending user transactions from the mempool, verifying their signatures, and computing the corresponding state transition. The protocol ensures that block producers propagate the block data to the rest of the network to validate the block. There is a decentralized validator set that re-executes the computation of the state transition in order to validate the block produced(state computation validation, signature validation, etc). The block producers get paid in ETH for their work(reward). There is an incentive mechanism built into the protocol that allows different participants in the network to act and behave on behalf of the common goal and not for their own interest. The protocol also defines how to achieve consensus about the next block when there are many proposed blocks, such as the Nakemtou consensus. The protocol defines all the rules that coordinate the network for running a trust-minimized state machine.
The Blockchain protocol is configured to identify the users of the ledger based on a decentralized identity system. Bitcoin introduced a revolutionary approach to identifying accounts and authenticating transactions. This model provides the foundation for a new era of digital identity, allowing users to operate without the need for centralized third parties. Here’s how it works:
Identification: Bitcoin identifies users through a blockchain address based on Public Key Cryptography (PKC).
Authentication: Users authenticate their transactions via digital signatures, ensuring security and integrity.
This decentralized system ensures that identification and authentication are completely independent of centralized entities, enabling users to maintain full control over their assets and digital presence. Ethereum makes the next upgrade to this approach to become programmable and general-purpose, referred to as Account Abstraction(AA).
Wallets are software clients that allow users to manage their identifiers, authenticate their identity, and issue blockchain transactions. Key functions of wallets include:
Managing seed phrases, private keys, and addresses.
Signing blockchain transactions.
Propagating transactions to the blockchain network.
A block is a fundamental unit of the blockchain that encapsulates a list of transaction calls responsible for triggering a state transition(Block Body). Each block includes a header containing metadata(Block Header) such as:
The new state root resulting from applying the transactions
A timestamp and block height.
A header including the previous block hash (to link the chain), the previous (old) state root
A transactionsRoot: Merkle root of all transactions in the block.
etc
Block space
Within a block, we can deploy a computer program, transfer native coins like BTC or ETH, and call a computer program based on user inputs. This is referred to as block space. It is offering trust-minimized state management on the internet. It is secured by crypto-economic and cryptographic security. Block space is produced collectively by the P2P network. It’s co-produced by node operators and validators(coordinated by the protocol), who secure the network and are compensated in the native token, via blockrewards (paid by the protocol) and transaction fees (paid by users initiating transactions). It is decentralized by design and there isn’t a centralized entity that owns and controls the block space.
Block space is the unit of computation for tokenization and the on-chain world.
Block space is a resource that offers trust-minimized state management: smart contract deployment(code and storage), state computation, state integrity, order transactions, data availability(block data availability: transaction data, protocol data), state validation, next global state consensus, and state settlement on the internet in a trust-minimized manner secured by crypto-economic and cryptographic security.
Block space is a public good that will be in exponential demand in the coming years. It is one of the most emerging markets, characterized by exponential business growth, more economic activities, and high revenue. The block space gets paid in native coins, such as BTC or ETH. It will be part of the global on-chain economy.
Ethereum block space will secure the new internet. Mainly, it will be used by smart contract programs who secure the internet such as rollups who inherit Ethereum security or restaking by Eigenlayer to share Ethereum security to secure other networks. The produced Ethereum block space is validated in a decentralized manner.
The Blockchain protocol defines the mechanism to compute the block space price. It is referred to as a transaction fee mechanism (TFM) or transaction gas fees. It is influenced by the market's demand and supply.
The most significant upgrade within gas fees was done in August 2021, when the Ethereum protocol changed how it calculates and processes transaction fees (gas fees) on the Ethereum network. It replaced the previous "first-price auction" system with a more predictable base fee that adjusts based on network demand, plus a tip for faster transaction processing. This change aims to make transaction fees more predictable and reduce overpayment by users. More details: https://hackernoon.com/eip-1559-separating-mechanisms-from-memes
Block Space Security(e.g. Ethereum)
Ethereum blockspace refers to the limited computational capacity per block that users compete for when submitting transactions. It's the core commodity of the Ethereum network, where:
Demand is driven by users and apps needing execution (e.g., DeFi, NFTs, ZK proofs).
Supply is limited by gas limits (currently ~30M gas per block).
Blockspace is monetized via gas fees paid to validators. This creates a market for computation secured by Ethereum’s consensus layer.
Ethereum’s consensus layer (the Beacon Chain) uses Proof of Stake (PoS):
Validators stake ETH to propose/attest blocks.
Misbehavior (e.g., double signing) results in slashing.
Rewards come from block proposals, attestations, and MEV (maximal extractable value).
This staking mechanism underpins the security of Ethereum's blockspace: If the blockspace were manipulated (e.g., censorship, reorgs), the network’s integrity—and by extension, the value of staked ETH—would be threatened.
The framing of blockspace as a security product is increasingly relevant in modular and rollup-centric Ethereum:
Rollups (e.g., Optimism, Arbitrum) post data to Ethereum for settlement.
EigenLayer introduces restaking to offer security as a service to these rollups and other off-chain systems.
Thus, Ethereum validators aren’t just securing Ethereum blocks—they’re exporting their trust to external systems.
Blockspace security staking is intimately tied to consensus because consensus is what guarantees the availability, ordering, and integrity of Ethereum's blockspace.
Consensus determines what block space is canonical, Ethereum uses Proof of Stake (PoS) via the Beacon Chain. Validators participate in a consensus protocol:
Propose blocks.
Vote on block validity and order via attestations.
Only the blocks agreed upon by consensus become canonical—and thus, only their block space matters.
Blockspace is only secure if users trust:
Transactions won’t be reordered or censored.
Blocks won’t be reverted or manipulated.
The state transitions resulting from transactions are consistent.
This trust is guaranteed by:
Economic incentives (staking rewards).
Punishments (slashing for misbehavior).
Validator diversity (resistance to cartelization).
Thus, PoS consensus is the bedrock for securing Ethereum's computational resource: the blockspace.
Restaking extends consensus trust. In restaking (e.g., EigenLayer), validators reuse their ETH stake to secure additional services. EigenLayer allow Ethereum validators to opt-in to restake their ETH for additional duties beyond Ethereum’s L1, such as:
Securing DA layers (like Celestia bridges).
Verifying zk proofs.
Running oracle or AVS (Actively Validated Services) tasks.
These create a marketplace for Ethereum blockspace trust, where validators monetize their stake’s credibility. The economic trust built by consensus is being exported to other systems — piggybacking on the assumption that Ethereum validators act honestly because they have skin in the game. It’s a form of trust propagation from Ethereum’s consensus to external services.
Without consensus, there is no secure blockspace.
Without secure staking, there is no credible consensus.
Without blockspace, Ethereum is just an idle network.
Scaling Block Space: Scale execution
To scale block space and respond to its growth demand without increasing its price, L2, especially rollups, are a new solution that provides block space via a horizontal scale approach. They introduce different models for the development and execution of a smart contract with the inheritance of Ethereum security.
Rollups are a Layer 2 scaling solution for the Ethereum blockchain(Scale execution). They bundle (or "roll up") many transactions off-chain, then post a summary of those transactions on-chain. There are two main types:
Optimistic Rollups (e.g. Optimism, Arbitrum) – assume transactions are valid unless challenged.
ZK-Rollups (e.g. zkSync, Scroll) – prove every transaction with cryptographic proofs (zero-knowledge).
ZK-Rollups with built-in privacy:
Polygon Miden
Aztec
Scaling Block Space: Scale data | Introduction of Blob Space
As rollups demonstrate their ability to scale Ethereum, they require significantly more data throughput. Rollups such as Optimism, Arbitrum, zkSync, and Starknet must publish large volumes of data to Ethereum so that users can independently reconstruct the rollup state.
Previously, this data was posted as calldata, which is stored permanently on-chain. However, calldata is expensive, and its high cost limited rollup scalability. This created a throughput bottleneck, particularly for rollups aiming to support thousands of transactions per second.
To address this, Ethereum introduced blob space through EIP-4844, which provides a new, cheaper, and temporary data format called blobs. Blobs are not stored permanently on-chain but remain available for approximately two weeks—sufficient time for rollups to retrieve and verify the data(Scale data).
Blobs are priced separately from standard gas, enabling Ethereum to significantly increase rollup data availability without congesting the main execution layer. As a result, blob space not only enhances the data capacity for rollups but also strengthens their alignment with Ethereum security by increasing the quality and reliability of their block space.
Blob space is a new type of digital infrastructure on Ethereum that allows large-scale data to be published more efficiently. It enables next-generation internet applications to scale securely and affordably.
The supply of blob space is limited by design, creating a scarce and valuable resource. Like energy or bandwidth, it becomes a core input for digital economic activity. Demand is rising rapidly from technologies built on Ethereum, especially Layer 2 networks. As more users and businesses shift on-chain, the need for blob space will multiply.
Blob space operates in its own pricing market, paid in Ethereum’s native currency (ETH). Its cost adjusts with usage, similar to cloud computing or bandwidth pricing models. Companies using Ethereum-based platforms can now reduce infrastructure costs by using blob space. This unlocks more scalable financial products, digital services, and applications.
Blockchain computer science concepts to be familiar with
Network - Protocol - Ledger - Transaction - State - State machine - Identity - Immutable computer program - Smart contract - Computation - Data availability(protocol and transaction data) - Consensus - Settlement - Block space - Blob space - Gas fees - Trust-minimization - Crypto-economic security - Shared security - Cryptographic security - Programmable cryptography - Zero-knowledge proof (ZKP)
Ethereum is the most decentralized, most secure, credibly neutral blockchain, 10 years running with 100% uptime. Ethereum lead many movements to scale and adopt Blockchain:
Modular blockchain thesis
Programmable cryptography (ZK, SNARKs, FHE, MPC, …)
A program that allows you to program people's behavior through economic incentives and to get people to work together, coordinate, and cooperate in a really powerful property of the blockchain system. Eigenlayer builds a coordination engine mechanism at scale through shared security.
etc
With Ethereum's modular future:
Consensus layer (CL) ensures ordering & finality.
Execution layer (EL) processes transactions and state.
Data availability ensures data is published.
A comprehensive guide for Bitcoin and Ethereum Block space by Shermin Voshmgir
BTC is the currency of the Bitcoin network. Node operators (aka miners) are rewarded in BTC for contributing to the public infrastructure they co-maintain.
ETH is the currency of the Ethereum network. Node operators (aka validators) are rewarded in ETH for contributing to the public infrastructure they co-maintain.
Their collective utility/productivity can be measured in the amount of blockspace (network capacity) produced securely over time . The Bitcoin or Ethereum infrastructure, and their respective currencies ETH & BTC, are only valuable if:
Many maintain it → ensuring security & functionality
Many use it → ensuring demand & operator revenue.
Bitcoin blockspace is used every time someone spends/sends BTC over the network.
Ethereum blockspace is used every time someone uses a decentralized application deployed on Ethereum, or send ETH & other app-tokens over the network.
A comparison between the Bitcoin and Ethereum block space by Shermin Voshmgir
Bitcoin has the highest market cap, but its blockspace is underutilized.
→ Blocks are rarely full.
→ Fees are low.
→ Daily transaction activity is modest.
In short: there’s little real demand for Bitcoin’s blockspace.
Ethereum, by contrast, is actively used.
→ Blocks are often full.
→ Fees are high enough to be burned.
→ The network processes complex transactions and supports real applications (DeFi, NFTs, L2s).
Ethereum blockspace is scarce, valuable—and in demand. Yet ETH remains underpriced.
Blockspace pricing matters because it affects:
• Network security (fees = validator incentives)
• Token value (fees create demand or are burned)
• User experience (fees affect usability and migration)
And it reveals a key dilemma:
High fees → Stronger security & token alignment
High fees → Lower accessibility → Usage migrates to cheaper chains
lean Ethereum
Ethereum is special. 100% uptime since genesis. Unrivaled client diversity. 130B USD in economic security (35.7M ETH staked × 3.7K USD)—maybe soon 1T USD.
offense—beast mode
Ethereum is hungry. "Scale L1, scale blobs" is a strategic urgency inside the EF's Protocol cluster. Expect low-hanging performance gains over the next 6–12 months.
Longer term? Think gigagas L1, teragas L2. Call it beast mode.
1 gigagas/sec on L1: 10K TPS, ambitious vertical scale
1 teragas/sec on L2: 10M TPS, sprawling horizontal scale
Scale vs decentralization? Why not both. The moon math we need is now tamed:
real-time zkVMs for lean execution
data availability sampling (DAS) for lean data
A delicious cherry on top: full chain verification across every browser, wallet, phone.
lean upgrades
Lean Ethereum proposes bold upgrades across all three L1 sublayers:
lean consensus is beacon chain 2.0: hardened for ultimate security and decentralization, plus finality in seconds; formerly branded as "beam chain"
lean data is blobs 2.0: post-quantum blobs, plus granular blob sizing for a calldata-like developer experience
lean execution is EVM 2.0: a minimal, SNARK-friendly instruction set (possibly RISC-V; pronounced "risk five"), boosting performance while preserving EVM compatibility and its network effects
The consensus layer (CL), data layer (DL), execution layer (EL) have each been reimagined from first principles. Together, they unlock fort mode and beast mode.
lean cryptography
Hash-based cryptography is emerging as the ideal foundation for lean Ethereum. It offers a compelling, unified answer to two megatrends reshaping the ecosystem:
the explosive rise of SNARKs
the looming quantum threat
Imagine the leanest cryptographic brick—the hash function—singlehandedly powering L1:
CL: hash-based aggregate signatures upgrade BLS signatures
DL: hash-based DAS commitments upgrade KZG commitments
EL: hash-based real-time zkVMs upgrade EVM re-execution
A cryptographic jewel in each of lean CL, lean DL, lean EL.
Source: https://blog.ethereum.org/2025/07/31/lean-ethereum