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Ethereum Faces Critical Scaling Issue, Vitalik Admits Mistake
Ethereum faces a scaling bottleneck due to "modexp precompile", an encryption algorithm that slows down high-scale ZK rollups.
Summary
- Ethereum faces a scaling bottleneck due to “modexp precompile”, an encryption algorithm that slows down high-scale ZK rollups.
- Vitalik accepts it was a fatal mistake on his part, being the creator of this algorithm around 2017.
- He also talks about a potential Ethereum Improvement Proposal (EIP) to replace it.
Ethereum’s Scaling Bottleneck Explained
Ethereum has been highly reliant on the Zero Knowledge Solutions like ZK Rollups. It had even bought blobs, temporary storage spaces in Ethereum L1 blocks, to reduce the cost that rollups pay to finalize their transactions on Ethereum
Further, Ethereum had also bought the Dencun Upgrade on March 13, 2024 and the Pectra Upgrade on May 7, 2025 to help rollups.
However, a past legacy solution remains a critical bottleneck for Ethereum Scaling called the “modexp precompile”.
What is modexp precompile?
Modular Expansion (ModeXP) Precompile is an algorithm that enables the execution of highly complex operations, which other protocols, such as RSA, cannot perform.
When ModeXP was created around 2017, there were no Zero Knowledge Protocols. In the current scenario, they force the Zero Knowledge Rollup to simulate the Ethereum blockchain for every transaction in a particular summary.
The proof must contain evidence that all the operations that were conducted in the ZK Rollup have been executed in the same way as they would have been done in Ethereum. However, ZK Rollups, being based on Zero Knowledge Technology, erase all the intermediate operation steps for the sake of speed and knowledge.
Therefore, it delays the rollup’s operation and can even cause a consensus failure in Ethereum.
Why is it a Risk for the Ethereum Consensus?
Since it is only required for math-intensive situations, it is rarely used. However, whenever it is used, it increases the difficulty of execution by 50 times than normal levels, which may result in a consensus failure.
A consensus failure essentially halts the blockchain and is considered a major setback, resulting in numerous missed and unfinished transactions.
Could Disrupt Pectra and Dencun Upgrade Goals
ModeXP Precompile has been essentially working against Zero Knowledge solutions, which are essential for Ethereum scaling. With the algorithm in place, Zero Knowledge solutions will not reach their maximum efficiency and may face delays, which essentially erases all the benefits of the Dencun Upgrade (which introduced blobs) and most of the Pectra Upgrade.
Vitalik Buterin Proposes a New Solution
Vitalik proposed an Ethereum Improvement Proposal for removing the ModeXP Precompile from Ethereum altogether. He further added that those who still rely on it could start using SNARKs to address their needs.
Although the new solution might consume more gas than ModeXP Precompile, it would be a lot more zero knowledge friendly than the existing one.
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