A critical proposal has been put forward by Ethereum researchers to boost the platform’s performance. This proposal, named EIP 7781, is intended to improve throughput performance by 50%.
Proposed Changes for Ethereum
The proposal was introduced by Ben Adams, a contributor at Netherminds, an Ethereum execution client. Adams recommended decreasing slot times from 12 seconds to 8 seconds.
In Ethereum’s Proof-of-Stake (PoS) system, blocks are proposed every 12 seconds through slots. Each slot designates a validator to propose a block, which is crucial for transaction throughput capacity.
Reducing slot times has the potential to significantly increase throughput capacity.
Support for the Proposal
Justin Drake, another Ethereum researcher, also backed the proposal, highlighting its ability to enhance the efficiency of decentralized exchanges (DEXes).
Drake mentioned that the proposal could lead to approximately $100 million in annual savings for DEXes through arbitrage executions.
If approved, Ethereum’s throughput could see a 50% improvement, with gas and blob limits set at 45 million and 9, respectively.
The community responded positively to the proposal, considering it a game-changer for ETH’s performance. Matthew Sigel, head of digital assets research at VanEck, suggested that 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.”
While the potential negative impacts of the proposal remain uncertain, Sigel believed it could aid in reversing ETH’s recent value decline.
ETH has faced significant FUD lately, partly attributed to its inflationary nature following the Blobs update in March 2024.
The approval of the proposal and its impact on ETH’s performance are yet to be determined.
Currently, Solana holds the title of the fastest blockchain, boasting a transaction speed of 785 transactions per second (tps). Should the Firedancer client go live on the Mainnet, it could achieve thousands or even millions of tps.
In contrast, ETH ranks 15th on the list of fastest blockchains and falls short of SOL even with its L2 scaling solutions. Nevertheless, the proposal could bridge this gap and bring ETH closer to par with Solana’s efficiency.