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Ethereum Proposal EIP 7781 Might Change Everything, Here's Why

Published 07/10/2024, 15:35
Updated 07/10/2024, 19:15
Ethereum Proposal EIP 7781 Might Change Everything, Here\'s Why
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U.Today - Ethereum developers have introduced a new proposal for the network, dubbed EIP-7781. This proposal will significantly change the rate of new blocks on the network. Notably, it suggests significantly reducing the blockchain’s slot time by four seconds.

Enhancing layer-2 solutions and bandwidth distribution

The new Ethereum proposal, EIP-7781, will reduce slot time from 12 seconds to 8 seconds. For clarification, slot time refers to the durations between which new blocks are proposed. Therefore, reducing the intervals by four seconds will cumulatively lead to the production of more blocks.

This proposal comes after the Dencun upgrade, and its impact on the Ethereum network hinges on efficiency for users. According to Ben Adams, the researcher behind the proposal, another aim of the EIP-7781 is to lower latency for rollups. Rollups are layer-2 scaling solutions that leverage the sequencing capabilities of Ethereum's mainnet.

Adams maintained that it will also increase transaction throughput on the Ethereum network. He estimates the improvement will scale by about 33% without increasing individual block or blob counts. The proposal will also distribute bandwidth usage over time to lower peak bandwidth requirements and maintain network efficiency.

The boost is comparable to increasing the blob count from 6 to 8 or the gas limit from 30 million to 40 million capacity. However, the increase will not be accompanied by any strain on resources. As of this writing, the proposal is being subjected to preliminary review and discussion.

Ethereum’s market perception

Meanwhile, a notable financial institution, JPMorgan, has analyzed Ethereum. According to the economic giant, Ethereum’s futures products lack bullish impulses. JPMorgan states that institutional players classify Bitcoin and gold as similar assets.

However, when it comes to Ethereum, investors do not consider it to belong to the same asset class as gold and Bitcoin. They believe this is one reason why Ethereum is currently underperforming. At the time of writing, data shows ETH has recorded a 1.52% uptick to $2,468.77.

With changes that EIP 7781 will introduce, the Ethereum outlook may change in the long term.

This content was originally published on U.Today

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