Ethereum’s 2026 Overhaul Aims To Cut Costs, Boost Speed, Limit Censorship

Overview

Ethereum is set to implement significant changes in 2026 through two major hard forks: Glamsterdam and Heze-Bogota. These upgrades aim to enhance transaction speed, improve validation processes, and strengthen censorship resistance within the network.

What Happened

Reports indicate that Ethereum will undergo two pivotal hard forks in 2026, with the Glamsterdam upgrade scheduled for mid-2026 and the Heze-Bogota upgrade planned for late 2026. The Glamsterdam upgrade focuses on parallel execution, allowing multiple transactions to be processed simultaneously, rather than sequentially. This change is expected to increase the efficiency of transaction handling by introducing block access lists, which will inform nodes about the specific data required for each transaction. Additionally, the gas limit is projected to be increased to 200 million, a significant rise from the current limit of 60 million.

A key feature of the Glamsterdam upgrade is the shift towards validating zero-knowledge (ZK) proofs, which could enable Ethereum’s Layer 1 to handle up to 10,000 transactions per second. The planned implementation of protocol-level proposer-builder separation (ePBS) aims to mitigate centralization risks and facilitate the use of ZK proofs by validators without incurring penalties for additional compute time. Analysts estimate that by the end of 2026, approximately 10% of validators may begin verifying ZK proofs.

However, increasing the gas limit and enhancing parallel execution comes with certain trade-offs. Higher gas limits may necessitate more robust hardware, potentially disadvantaging smaller validators in the network. This tension between improving speed and maintaining decentralization will be a focal point as these upgrades roll out.

The Heze-Bogota upgrade will introduce tools designed to improve censorship resistance. Specifically, fork-choice inclusion lists will enable groups of validators to ensure that certain transactions are included in blocks, thereby reducing the risk of transaction blockage when only a portion of the network is functioning honestly. This upgrade emphasizes the importance of permissionless access, which aligns with the core values of the Ethereum network.

From Author

The planned upgrades for Ethereum in 2026 signify a critical evolution in the network’s capabilities. By targeting transaction speed and censorship resistance, Ethereum aims to maintain its relevance and competitive edge in the rapidly evolving blockchain landscape. The balance between enhancing performance and preserving decentralization will be crucial to the network’s future success.

Impact on the Crypto Market

• The upcoming upgrades may lead to increased investor confidence in Ethereum, potentially impacting its market position.
• Enhanced transaction speeds could make Ethereum more appealing for developers and users, fostering broader adoption.
• The focus on censorship resistance could attract users concerned about network integrity and access.
• The changes may influence the broader market dynamics, particularly for layer-2 solutions and other blockchain projects.
• The upgrades will likely prompt discussions on the sustainability of decentralization alongside performance improvements.