The post Could Ethereum’s new EIP 7781 help close the gap with Solana? appeared on BitcoinEthereumNews.com.

Ethereum’s new proposal aims to enhance performance by 50%.  If approved, it could help ETH close the gap with other top L1s’ throughput.  Ethereum [ETH] researchers have made a crucial proposal to improve the platform’s performance. The proposal, known as EIP 7781, aims to enhance throughput performance by 50%.  Key proposed changes for Ethereum Ben Adams, a contributor at Netherminds, an Ethereum execution client, forwarded the proposal. He suggested reducing slot times from 12 seconds to 8 seconds.  For context, Ethereum PoS (Proof-of-Stake) is designed to propose a block every 12 seconds, called slots. For each slot, a validator is selected to propose the block, making this feature a crucial part of its transaction throughput capacity.  Source: GitHub 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).  According to Drake, the proposal could save DEXes around $100 million annually in arbitrage executions.  Source: GitHub Most importantly, if the proposal is approved, Ethereum’s throughput could improve by 50%, with the gas and blob limit capped at 45 million and 9, respectively.  Most community members hailed the proposal as a game-changer for ETH’s performance. According to Mathew Sigel, head of digital assets research at VanEck, the proposal could ‘shift some power back to L1.’ “Major #ETH improvement proposal may shift some power back to L1. Hints at further acceleration. Both L1 & L2s (via blobs) get a 50% bump in throughput.”  At press time, many of the proposal’s potential negative impacts were unknown. But Sigel believed the move could help reverse ETH’s declining value.  For perspective, ETH has been the subject of intense FUD recently. Following the Blobs update in March 2024, investors blamed its declining value on its inflationary nature.…

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Filed under: News - @ October 7, 2024 12:24 pm