Ethereum Activates BPO-1 Upgrade, Boosting Blob Capacity and Expanding the Network’s Scaling Roadmap

Ethereum has activated BPO-1, a protocol adjustment that increases blob capacity per block from 6 to 15, marking one of the most meaningful improvements to the network’s data availability layer since the Dencun upgrade.

The announcement, shared by the Ethereum Foundation on December 11, highlights how the change optimizes Layer 2 data throughput while keeping costs low.

The development was also noted by industry observers, including OKX Ventures, whose breakdown can be found…

Unlike previous large upgrades, BPO-1 did not require a hard fork. Instead, it leverages a new BPO (Blob Pricing Oracle) mechanism that allows Ethereum to adjust blob parameters dynamically. This enables the protocol to allocate more space for Layer 2 rollups, making it cheaper for them to publish data and increasing their ability to handle larger transaction volumes. In practice, the move positions Ethereum to support the next wave of high-frequency applications across DeFi, AI, gaming, and emerging social networks.

Building on Dencun: A Technical Evolution Toward Full Sharding

BPO-1 is not an isolated update. It is a carefully calibrated extension of the same technical strategy introduced with EIP-4844 during the Dencun upgrade. That earlier milestone brought “proto-danksharding,” creating blobs as a new data format available exclusively to Layer 2 rollups.

BPO-1 pushes this path forward. By raising blob capacity per block to 15, Ethereum strengthens the foundation for full sharding, or more specifically, danksharding, the long-term scaling solution that aims to dramatically expand data bandwidth and reduce rollup costs.

This upgrade also lays critical groundwork for future architectures like PeerDAS, a distributed data sampling design expected to further optimize how the network handles data availability. PeerDAS will rely on validators and nodes sampling portions of blob data instead of storing everything, enabling exponential scaling without sacrificing security.

In this context, BPO-1 is part of a broader sequence of incremental adjustments. These small but strategically important steps ensure Ethereum can scale sustainably without compromising decentralization or consensus integrity.

Strategic Timing: Meeting Market Demand for Lower Fees and Higher Throughput

The activation of BPO-1 arrives during a period of rapid Layer 2 expansion. Rollups, from Optimistic solutions to ZK-powered networks, now carry the majority of Ethereum’s transaction load. As usage grows, so does the demand for cheaper and more abundant data recording space.

The increase to 15 blobs per block directly addresses these pressures. More blob space means:

•  Lower costs for rollups publishing data
•  Higher throughput capacity for applications relying on L2s
•  Improved user experience with faster settlement and reduced fees
•  A stronger competitive position against other high-throughput chains

Ethereum’s scaling roadmap has always been driven by maintaining long-term ecosystem vitality. With DeFi expanding, on-chain social protocols gaining traction, and AI models increasingly leveraging blockchain storage and provenance systems, the stakes for throughput have never been higher.

High-frequency applications, real-time trading platforms, gaming engines, messaging systems, content networks, depend on predictable, low-latency execution. BPO-1 helps move Ethereum closer to the infrastructure required for these use cases to thrive at global scale.

The timing also reflects the network’s strategic competition. Alternative layer-1 blockchains have emphasized throughput numbers in the thousands or tens of thousands. Ethereum’s approach remains different: instead of pushing the base layer to extremes, it distributes load across dozens of rollups, each benefiting from shared security while innovating independently. BPO-1 strengthens this model by improving the shared data environment every L2 depends on.

Governance Flexibility: Upgrading Without Fragmentation

One of the most notable aspects of the BPO-1 activation is how it was implemented. The BPO mechanism enables Ethereum to change blob parameters without requiring a hard fork. This demonstrates a growing flexibility in Ethereum governance, introducing a meaningful optimization while minimizing disruption.

Avoiding a hard fork has several advantages:

•  Lower risk of chain splits or fragmentation
•  Faster response to market conditions
•  Simplified coordination among validators and node operators
•  Reduced engineering overhead for client teams

However, the approach still depends on the community’s operational readiness. Validators, node operators, staking services, and infrastructure providers must update their clients quickly to maintain consensus.

This is especially important because blob handling is deeply tied to Ethereum’s consensus mechanics. Any inconsistencies between clients could produce missed slots, execution errors, or propagation delays. But as of the activation, the client ecosystem has demonstrated high responsiveness and strong coordination, reflecting the network’s maturity and operational resilience.

Setting the Stage for BPO-2 and Continued Scaling Progress

The BPO-1 upgrade is not the end of the story. Ethereum’s next milestone, BPO-2, is set to go live in January next year. Expectations are that blob capacity will rise even further, and additional refinements will continue tuning the system for optimal performance.

Each BPO update serves a dual purpose. First, it boosts current Layer 2 capabilities by lowering costs and increasing throughput. Second, it prepares the network for more transformative upgrades down the line: full danksharding, PeerDAS, and advanced data availability networks that will define Ethereum’s long-term architecture.

The roadmap ahead emphasizes iterative progress. Instead of waiting for a massive, all-at-once sharding overhaul, Ethereum is scaling through measured, flexible enhancements that allow L2 ecosystems to grow today while laying the technical foundations for tomorrow.

Outlook: Ethereum Strengthens Its Position as the Settlement Layer for the Internet

With BPO-1 now live and delivering more blob space per block, Ethereum reinforces its position as the world’s settlement layer, a base for thousands of applications, billions in daily value, and the entire Layer 2 ecosystem that depends on its security guarantees.

As L2s continue expanding and global demand for scalable blockchain infrastructure increases, Ethereum’s approach remains clear: optimize the data layer, boost throughput, reduce costs, and roll out improvements without forcing disruptive consensus changes.

BPO-1 reflects that strategy in action. And with BPO-2 already on the horizon, Ethereum is entering a new phase of rapid, adaptive scaling, one that brings the network closer to its long-term vision of a fully sharded, high-bandwidth, global settlement system.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!