Ethereum has implemented the Fusaka upgrade, marking a significant step towards sharding with the launch of PeerDAS. This data-processing system allows nodes to verify tiny fragments of block data, leading to increased transaction capacity and efficiency. However, despite these advancements, Vitalik Buterin highlights remaining challenges in scaling Ethereum’s network, including the need for mature ZK-EVMs, a distributed block-building system, and a fully sharded mempool. Ethereum is currently processing 1.3-1.8 million transactions daily and securing over $73 billion in DeFi value. While Fusaka aims to support these volumes while maintaining decentralization, Buterin emphasizes the importance of addressing the remaining development gaps for true scalability.