Ethereum Activates Fusaka Upgrade, Aiming To Cut Node Costs, Speed Layer-2 Settlements

Ethereum activated its highly anticipated “Fusaka” upgrade on 3^rd December, marking the blockchain’s second major code change of 2025. The update is designed to help Ethereum handle the increasingly large transaction batches coming from the layer-2 networks that settle on top of it.

Fusaka – a blend of the names Fulu + Osaka – bundles two hard forks on Ethereum happening in tandem: one on the consensus layer and one on the execution layer.

The former is where transactions and smart contracts run, while the settlement layer is where these transactions are verified, finalized, and secured.

At the center of the upgrade is PeerDAS, a system that lets validators check small slices of data rather than entire “blobs,” reducing both costs and computational load for validators and layer-2 networks.

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