- Ethereum’s new proposal aims to enhance performance by 50%.
If approved, it could help ETH close the gap with other top L1s’ throughput.
As a seasoned crypto investor with a keen interest in Ethereum [ETH], I find this latest development particularly exciting. The proposed EIP 7781, if approved, has the potential to significantly boost ETH’s performance by an impressive 50%. This could potentially close the gap between Ethereum and other top L1s in terms of throughput.
Researchers working on Ethereum (ETH) have put forward an essential plan to boost the platform’s efficiency. This proposal, called EIP 7781, intends to increase the platform’s ability to handle transactions by approximately 50%.
Key proposed changes for Ethereum
Ben Adams, who contributes to Nethermind (an Ethereum execution client), proposed a plan. His idea is to shorten the duration of each slot from 12 seconds to 8 seconds.
As a crypto investor, I’ve been following Ethereum closely and one aspect that catches my attention is their Proof-of-Stake (PoS) system. This system is designed in such a way that it proposes a block every 12 seconds, which we refer to as slots. In each slot, a validator is chosen to propose the block, a role that significantly contributes to Ethereum’s transaction processing speed and capacity.
Therefore, reducing the slot times could greatly enhance throughput capacity.
Others concur
Another Ethereum researcher, Justin Drake, supported the proposal as well. He cited its potential to improve the efficiency of DEXes (decentralized exchanges).
Based on Drake’s statements, the proposal has the potential to reduce annual arbitrage execution costs for DEXs by an estimated $100 million.
To put it simply, given the approval of the proposal, Ethereum’s processing capacity might potentially double (improve by 100%), while setting a maximum for gas and blob limits at 45 million and 9 units respectively.
The majority of community participants celebrated the proposition, viewing it as a significant catalyst for Ethereum’s improvement. As per Mathew Sigel, head of digital assets research at VanEck, this proposition might help restore some control to the base layer (L1).
As an analyst, I am excited about the potential impact of a significant Ethereum (ETH) improvement proposal that could rebalance power towards Layer 1. This shift suggests a possible acceleration in the near future. Notably, both Layer 1 and its corresponding Layer 2 solutions (represented by blobs) will experience a 50% increase in transaction throughput.
As of now, several potential adverse effects of the plan remained unclear. However, Sigel was optimistic that this action might aid in boosting Ethereum’s dwindling worth.
From a different angle, Ethereum (ETH) has faced a lot of negative sentiment lately. Post the Blobs update in March 2024, some investors attributed its decreasing worth to its inherently inflationary characteristics.
Whether the proposal will be approved and ETH’s dynamics will change remains to be seen.
Currently, Solana [SOL] stands out as the swiftest blockchain available, boasting a transaction speed of 785 per second (tps) at this moment. If the Firedancer client successfully deploys on the Mainnet, it could potentially achieve speeds in the thousands or even millions of transactions per second.
Conversely, Ethereum ranks 15th among the fastest blockchains. However, it’s still not as fast as Solana, despite its layer-2 scaling solutions. Nevertheless, this proposal might assist Ethereum in narrowing the speed difference.
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2024-10-07 15:03