Ethereum Improvement Proposal EIP 7781 Aims to Boost Throughput by 50%

A new Ethereum Improvement Proposal, EIP 7781, has been proposed by Ethereum researchers to increase the blockchain’s throughput capacity by 50%. The proposal calls for a decrease in slot times from 12 seconds to 8 seconds, which could significantly impact the network’s overall performance.

Ethereum currently ranks as the 15th fastest blockchain, and its transaction throughput of 785 transactions per second is far below other popular networks like Solana. This proposal has significant potential for decentralized exchanges (DEXes) based on the Ethereum network.

The proposal suggests that DEXes could save roughly $100 million annually in arbitrage executions, which could improve the overall health of the decentralized finance (DeFi) ecosystem. To achieve this improvement, the proposal recommends reducing gas to 45 million and blob to 9 at most.

While the specific effects of these modifications are still being discussed, they are believed to have the potential to significantly boost the network’s overall performance. However, this proposal is particularly important as Ethereum has been experiencing significant price drops in recent months.

The cryptocurrency has also been under pressure, and any improvements to its underlying technology could help reverse this trend. If the network’s throughput capacity is enhanced, Ethereum could become a more popular choice among users and developers, leading to increased adoption and potentially higher value.

However, other cryptocurrency equivalents have already been achieved using similar technology, such as Solana. The speed of Solana’s blockchain has made it a popular choice among DeFi applications, while Ethereum is eager to catch up.

Additionally, the Firedancer client on Mainnet can process thousands or even millions of transactions per second, demonstrating how rapidly the blockchain could enlarge its scalability. Despite Ethereum’s lack of success in reaching such numbers, the proposal is a step forward.

The success of EIP 7781 will depend on several factors, including whether the wider community accepts the proposed changes and whether it is technically feasible to implement them. Even so, the proposal’s success could signify a significant milestone for Ethereum, as it strives to become progressively more efficient and scalable.

However, there is no immediate consensus on whether EIP 7781 will be successful or unsuccessful, and instead, people may view any positive developments in this area as fundamentally positive for the cryptocurrency market.

While it is uncertain whether this proposal will lead to a return of Ethereum, there is undoubtedly good news: Ethereum’s future is bright and promising.

For more information on Ethereum and its development, check out our article Ethereum 101: A Beginner’s Guide to the Smart Contract Platform on CoinSeeks.com.