As an analyst with experience in the Ethereum ecosystem, I believe that Vitalik Buterin’s proposal of Ethereum Improvement Protocol (EIP) 7706 is a significant step towards addressing the long-standing issue of high transaction costs on the Ethereum network.
Vitalik Buterin, one of Ethereum‘s co-founders, has put forth a fresh Ethereum Improvement Proposal (EIP), specifically EIP 7706. This proposal centers around a novel gas model designed for handling transaction call data.
In the context of Ethereum transactions, there are two kinds of gas fees. One fee is for processing the transaction itself, which pays for the necessary computational resources. The other fee is for data storage, which compensates the network for keeping the information as “blobs.”
Buterin’s EIP 7706 introduces a new type of gas for call data in Ethereum transactions. Call data refers to the information transmitted from the initiating transaction to the called smart contract.
In simpler terms, during Ethereum transactions, data transfer charges will be distinct from the fees for running contract codes or storing information on the blockchain.
With the introduction of the new gas model, there will be an additional transaction type featuring max\_basefee and priority\_fee as a dual-element vector. This vector will assign distinct gas fee values for execution, blob, and call data.
Currently, the base fee adjustment is handled through distinct methods for the expense of executing a transaction and the cost of storing data as blobs.
As a crypto investor, I’ve noticed Ethereum founder Vitalik Buterin proposing an intriguing solution. He suggests implementing a third kind of gas fee, and advocates for a unified method for pricing all three types within the Ethereum network. This way, we can ensure fairness and simplicity in transaction fees.
As a researcher studying the Ethereum network, I would describe it this way: The proposed change intends to minimize the expenses incurred during transactions that involve large amounts of data but do not require significant computational resources. If approved, Ethereum will have the autonomy to set call data costs separately from other fees.
Buterin proposed a flexible approach for managing gas fees, adjusting them all at once based on the current market conditions.
Buterin proposed a solution involving distinct gas fees for call data. This adjustment could significantly decrease the maximum call data size per block, theoretically. Moreover, based on fundamental economic evaluation, the cost of call data on average is expected to be reduced noticeably.
For some time now, Ethereum’s network has faced challenges with high gas fees associated with transactions. The primary reason for transitioning from the proof-of-work (PoW) consensus mechanism to proof-of-stake (PoS) is to enhance scalability and reduce transaction costs.
As an analyst, I’ve observed that despite the promised enhancements to scalability from recent network upgrades, the desired improvements have not materialized. Consequently, the introduction of these Ethereum Improvement Proposals (EIPs) provides much-needed assistance for addressing this issue.
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2024-05-14 14:42