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Ethereum Hyperscaling Aims to Fix Rising State Costs: Buterin

By

Hanan Zuhry

Hanan Zuhry

Ethereum hyperscaling could lower transaction fees by reducing permanent storage for ERC-20 tokens and NFTs on the network.

Ethereum Hyperscaling Aims to Fix Rising State Costs: Buterin

Quick Take

Summary is AI generated, newsroom reviewed.

  • Vitalik Buterin outlines a plan to hyperscale Ethereum without permanent data growth.

  • Cheaper storage options target ERC-20 balances and NFTs.

  • A UTXO-style model could enable massive scaling improvements.

  • Lower fees and lighter node requirements could boost adoption.

Ethereum’s co-founder Vitalik Buterin has shared a new research idea that has the possibility to change how Ethereum scaling. On February 6, 2026, he proposed a concept called “hyperscaling,” which is basically a simple goal. That Ethereum should grow but without becoming heavy, expensive or hard to run. The main focus for him is on fixing one of Ethereum’s biggest problems which is state bloat.

https://twitter.com/cointelegraph/status/2019629821244923951?s=46

Why Ethereum’s State Is a Problem

Ethereum’s “state” is the data that every node must have. Which includes account balances, smart contracts, NFTs and even token holdings. Moreover, the more people using Ethereum, the better the data will keep growing.

Big state sizes make it cost a lot more to maintain a node, which can push smaller operators out. Leading to risk centralization as time goes by. Hence, Buterin believes that Ethereum should not store all of the data forever, especially data that is easily changeable. 

A New Way to Store Tokens and NFTs

Buterin suggests making cheaper and more restricted types of state. These would work well for personal assets like ERC-20 tokens and NFTs. Furthermore, they would also not behave like today’s permanent storage.

One major idea is to use a UTXO-style model for tokens. In this system, ownership works through “spent” and “unspent” records. Then it could be tracked by Ethereum, that too more efficiently, without always rewriting the balances. This method already looks like it is working well in Bitcoin. Which is why Buterin thinks that it can help Ethereum to scale by up to 1,000 times without holding onto so much data.

Temporary State and User Responsibility

In this model, some Ethereum hyperscaling data could expire after a given time. Ethereum would forget it unless users saved proof of ownership, and wallets would handle this job.

If data expires, users can restore it by showing cryptographic proof. This gives some responsibility to wallets. At the same time, it makes the network much lighter. Ethereum would only keep essential data and everything else would stay optional and temporary.

What This Means for Ethereum

Ethereum Hyperscaling could reduce the transaction fees, and also the need of hardware for nodes. Which makes Ethereum easier to work with and harder to centralise.

For users, this could mean cheaper transfers and smoother NFT use. As for developers, it gives space to build without worrying about state limits. This proposal is still being researched, and may even take years to actually reach the network. However, it shows Ethereum’s direction clearly which is a good sign of keeping the market informed.

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