vitalik buterin proposes new eip to

Buterin argued that Ethereum itself is “well-positioned” to adjust to what awaits in the future, despite the uncertainties. Thanks to the Ethereum rollup-centric roadmap, he suggested, Ethereum is “open to all of the futures, and does not have to commit to an opinion about which one will necessarily win.”

As for big block chains, there is a way for them become trustless and censorship resistant, but “we’ll soon find out if their core developers and communities actually value censorship resistance and decentralization enough for them to do it.” said Buterin.

However, he noted that “it will likely take years for all of this to play out,” which includes developing and implementing complex technologies, as well as people getting comfortable enough to store their assets in them.

The new proposal of the Ethereum EIP-4488 would allow handling a more significant number of transactions per block. The amount of gas represented by the computational effort limits the size of the block.

Vitalik Buterin, co-creator of Ethereum, has proposed a new Ethereum Enhancement Proposal (EIP) to increase the block size to 1 megabyte (MB).

This new EIP aims to find a short- or medium-term solution to the current high rates paid in this network specializing in smart contracts.

The EIP-4488, currently being discussed, was posted on GitHub on November 23rd.

The motivation for increasing block size is to make better use of rollups and second-layer solutions.

The amount of gas collected by each transaction limits the size of Ethereum blocks, and Buterin claims that they could cut current commissions by up to eight times.

Cryptocurrency exchanges now hold 3 million fewer Ethereum tokens than they did in May 2021, when ETH hit an all-time high of $4,356.99.

Lark Davis, a New Zealand-based cryptocurrency vlogger, tweeted

Historically, a drop in Ethereum reserves across exchanges is followed by an upward climb in ETH price.

Capital rotation by institutional investors has started, from Bitcoin to Ethereum. JP Morgan analysts revealed a “strong divergence in demand.” More institutional investors are keen on Ethereum futures.

Analysts mentioned in a note,

This points to much healthier demand for ethereum vs.
bitcoin by institutional investors.

FXStreet analysts have predicted that ETH price should climb above the $3,200 level to advance further.

SNARKs) and allow users to check block availability by introducing “data availability sampling.”

And finally, it should add secondary transaction channels in order to prevent censorship.

“What do we get after all of this is done? We get a chain where block production is still centralized, but block validation is trustless and highly decentralized, and specialized anti-censorship magic prevents the block producers from censoring,” Buterin argued.

Furthermore, Buterin insisted that even if one particular rollup — a layer 2 solution that performs transaction execution outside the main Ethereum chain like Arbitrum, Optimism, and Zksync — manages to support 10,000 transactions per second, it would end up with centralized block production.

For example, Optimism and Arbitrum often provide fees 3-8x lower than users can get on the Ethereum base layer, and ZK-Rollups can provide fees up to 100x lower than on the Ethereum base layer, but these fees still are not trivial.

EIP-4488 seeks to further decrease Layer 2 gas fees in two ways: by decreasing transaction calldata cost, which is aprimary mechanismfor both Optimistic Rollups and ZK-Rollups, as well as by adding a ceiling for total transaction calldata that can be in a block. Increasing the amount of data spaceavailableto rollups is, according to Buterin, doable today, as block sizes are nowhere near sizes that would threaten network stability.

FAQ:— vitalik.eth (@VitalikButerin) March 19, 2022

Proto-danksharding is set to replace danksharding, a sharding technique in which only one proposer chooses all transactions and all data that go into this or that slot instead of a separate proposer for every shard.

The proposed solution can be an interim variant as it includes implementation of some danksharding elements. At the same time, it leads to increased data usage as it needs a much more greater block size.

Ethereum’s founder proposes to auto-delete blob data every 30 days to prevent the network from too large requirements for data and memory storage.

Deposit contract surpasses $30 billion as last pre-merge testnet is up and running

Ethereum network inches closer to the Merge, i.e., full-fledged migration toward proof-of-stake consensus.

This week Vitalik Buterin and Ethereum developer Ansgar Dietrichs co-authored a new Ethereum Improvement Proposal calledEIP-4488that seeks to cut the gas fees of EthereumLayer 2 scalingsolutions. The proposal is intended to act as a more immediate fix to high gas costs while more robust solutions are developed.

An Effective (But Short-Term) Solution

Vitalik Buterin, along with Ethereum developer Ansgar Dietrichs, has put forward a new Ethereum Improvement Proposal designed to lower Layer 2 gas fees in the short term while more effective long-term solutions are developed.

Ethereum gas fees have been very high for the last few months, and while Layer 2 scaling solutions that use either Optimistic Rollups or ZK-Rollups are “the only trustless scaling solution for Ethereum,” even gas fees usingthese protocolsare too expensive for some.

The base fee is a fixed-per-block network fee included in the EIP-1559 algorithm.

The second more complex option sets a base fee for using resources but includes burst limits on each resource. There would also be “priority fees” which are set as a percentage and calculated by multiplying the percentage by the base fee.

He stated that the drawback to the multidimensional fee structure is that “block builders would not be able to simply accept transactions in high-to-low order of fee-per-gas.” They would have to balance the dimensions and solve additional mathematical problems.

It remains to be seen whether the proposal will be passed since the priority at the moment is the next big upgrade.
The Ethereum network is currently gearing up for “the merge” which will dock the Ethereum blockchain with the Beacon Chain and effectively end Proof-of-Work.

In proto-danksharding implementation, only one proposer chooses all transactions and all data that goes into this or that slot instead of a separate proposer for every shard. That said, all validators and users still have to directly validate the availability of the full data.

The proposed EIP-4844 solution “can be an interim variant as it includes implementation of some danksharding elements.
At the same time, it leads to increased data usage as it needs a much more greater block size.”

Buterik suggests deleting large data files every 30 days to prevent the network from becoming overloaded.

Proto-danksharding has a lot of potential as a novel model to organize data logistics and it could potentially be even more effective than danksharding.

  • Vitalik Buterin has proposed multidimensional pricing of a transaction to tackle high gas fees for the network.
  • Buterin’s solution could optimize Ethereum gas cost through multidimensional EIP-1559.
  • Over 1.36 million ETH tokens have been burned and removed from circulation since the London Hardfork.
  • Vitalik Buterin has proposed a solution to tackle high gas fees through multidimensional pricing in EIP-1559. Since the burn implementation, over 1.36 million ETH tokens have been pulled out of circulation, fueling a bullish narrative for the altcoin’s price.

    Ethereum fees could drop through Vitalik Buterin’s proposal

    The Ethereum network continues to suffer from a spike in transaction fees.
    Vitalik Buterin, the creator of Ethereum, has put forward a proposal to tackle the issue.

    Without modifying the logic of Ethereum’s consensus layer, ERC-4337 bundles transactions, and Buterin expects this to open up next-level creativity in wallet design.

    ERC-4337 removes centralized actors and provides full EIP-1559 support to wallets, including fee simplicity. Further decentralization is likely to make Ethereum more lucrative to developers of smart contract applications and users alike.

    The said protocol is further expected to reduce the complexity of setting up user wallets and open up the possibility of social recovery and appointing guardians in a format similar to multisig wallets.

    The implementation of the proposal is underway, and Vitalik Buterin shared details in a recent tweet:

    Analysts have noted that Ethereum supply on exchanges is rapidly depleting.

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