- Ethereum developer Ben Adams has proposed EIP-7781, a series of changes that could increase Ethereum’s throughput by 50%.
- Additionally, other than faster block times, EIP-7781 also aims to enhance network efficiency by optimizing bandwidth usage.
Ethereum developers have come up with a proposal that could increase Ethereum’s overall throughput by 50%. Introduced on October 5 by Ben Adams, co-founder of Illyriad Games, the proposal suggests a series of changes that would reduce block times and increase data capacity, improving both speed and efficiency.
According to the developer, EIP-7781 is set to reduce block times on the Ethereum network. Being a central element, EIP-7781 aims to set cut block times from 12 seconds to 8 seconds representing a 33% decrease.
By speeding up block creation, Ethereum would be able to process more transactions in a shorter period, resulting in a 50% boost in network throughput. This change would also increase the capacity of blobs, a temporary data structure used to lower layer-2 network fees, further optimizing the system.
Via an X post, developer Cygaar called this proposal the “first huge” step toward improving Ethereum’s base layer. As of yet, Ethereum layer 2’s have grabbed much of the developer’s attention including rollups. However, EIP-7781 shifts attention back to the core network and could yield immediate benefits for decentralized applications (dApps) and the overall user experience.
There's a new EIP to increase Ethereum's throughput by 50%.
– 12 second block times -> 8 seconds
– 6 data blobs per block -> 9 blobs per block
– DEXes become around 1.22x more efficientIf approved, this would be a huge first step in improving Ethereum L1's performance. pic.twitter.com/MkX5gbiBFR
— cygaar (@0xCygaar) October 6, 2024
Additionally, other than faster block times, EIP-7781 also aims to enhance network efficiency by optimizing bandwidth usage. The proposal seeks to distribute bandwidth consumption more evenly over time, reducing peak bandwidth demands without expanding the quantity of individual blocks or blobs. This could result in smoother network operation during periods of high activity, mitigating congestion and delays.
This proposal has received great support from one notable Justin Drake who is an Ethereum Foundation researcher. According to Drake, the proposal aligns with some of the long-term goals set by Ethereum co-founder Vitalik Buterin and the Ethereum scaling community.
In particular, Drake highlighted that the reduced block times could make decentralized exchanges (DEXs) like Uniswap v3 approximately 1.22 times more efficient. This efficiency boost could result in cost savings of around $100 million per year by reducing arbitrage opportunities between centralized and decentralized exchanges, ultimately benefiting users through better trade execution.
Pros and cons are inherent to everything and solo stakers are falling on the dark side this round. Despite the potential for increased throughput and efficiency, some developers have expressed concerns about the impact of EIP-7781.
Reducing block times may lead to faster state growth on the blockchain, meaning more data would need to be processed in less time. This would require stakers to have more powerful hardware and higher bandwidth, raising the barrier to entry for those running nodes from home.
Adam Cochran of Cinnehaim Ventures supports the proposal, but only if gas limits remain constant. Adam stressed that he “Would want to see some tests on I/O hardware and staker return ping times to make sure it doesn’t cut off some home stakers but, it seems like it should be within range for most,”
At the time of writing, Ethereum’s ETH is swapping wallets with $2,452.45 marking a 1.26% surge in the last 24 hours.
