New Ethereum design EIP-7781: 50% increase in throughput

New Ethereum design EIP-7781: 50% increase in throughput

A new proposal to improve the Ethereum network, referred to as EIP-7781, has the potential to transform the way the network operates and significantly increase its throughput. If approved, this proposal will reduce the blocking time from the current 12 seconds to 8 seconds, which could mean not only faster transactions but also more efficient decentralized exchanges.

EIP-7781, authored by Ben Adams, co-founder of Illyriad Games, was unveiled on October 5. The developers claim that the proposal would allow to reduce block times on Ethereum by 33% while increasing data capacity. Overall, this could increase network throughput by 50%. In addition to faster transactions, the proposal focuses on increasing the capacity of blobs, temporary data structures that are intended to help reduce network charges at layer two.

In an Oct. 6 post on the social network X, a developer nicknamed Pseudonymous Cygaar said the EIP-7781 represents the "first huge" step toward improving Ethereum's base layer. Most developers have so far focused their attention on the second layer of Ethereum as a solution for scaling.

Improving user experience and efficiency

The EIP-7781 aims to not only increase throughput, but also spread bandwidth usage over time. This should reduce peak bandwidth requirements without increasing the number of blocks or blobs. Ethereum Foundation researcher, Justin Drake, endorsed the proposal on GitHub and confirmed that it is in line with the broader goals proposed by Ethereum co-founder, Vitalik Buterin.

Drake added that reducing block times could make decentralized exchanges like Uniswap v3 more accessible to more users. This is expected to lead to savings of up to "$100 million a year in arbitrage between centralized and decentralized exchanges." In addition, the proposal is expected to improve the user experience of smart contracts on Ethereum by reducing confirmation time by 33%.

Question marks over stakers and decentralization

On the other hand, some developers warn that shorter block times could put solo stakers at risk. Less block execution time means increased data volume on the blockchain, which would require more powerful hardware and more bandwidth.

Adam Cochran of Cinnehaim Ventures opined in an Oct. 6 post on X that the EIP-7781 is "reasonable" as long as the per-block gas limit is maintained. "We need to run tests on I/O hardware and ping times to ensure we don't cut off some home stackers. However, it looks like it should be within reason for most," Cochran said.

However, increased requirements for stakers may pose a long-term obstacle to Ethereum's decentralization. This EIP comes just days after Vitalik Buterin's discussion of a possible change to the minimum amount needed to become a validator on the Ethereum network, which could lead to further improvements in security and decentralization.

With the promise of changing and optimizing the Ethereum network, the EIP-7781 appears to be a major step forward for the future of the platform. If successfully implemented, it could set a new standard for speed and efficiency in blockchain technology.

Coingarage team