Ethereum’s new proposal aims to improve performance by 50%. If approved, ETH could help close the throughput gap with other top L1s.
Ethereum (ETH) researchers have made important suggestions to improve the platform’s performance. The proposal, known as EIP 7781, aims to improve throughput performance by 50%.
Main changes proposed for Ethereum
Ben Adams, a contributor at Netherminds, an Ethereum execution client, forwarded this proposal. He proposed reducing the slot time from 12 seconds to 8 seconds.
For context, Ethereum PoS (Proof of Stake) is designed to propose blocks every 12 seconds called slots. For each slot, a validator is selected to propose a block, making this feature an important part of transaction throughput capacity.
Source: GitHub
Therefore, reducing slot time can significantly increase throughput capacity.
others agree
Another Ethereum researcher, Justin Drake, also supported this proposal. He cited the potential to improve the efficiency of DEXs (decentralized exchanges).
According to Drake, the proposal could save DEXs about $100 million annually in arbitrage execution.
Source: GitHub
Most importantly, if the proposal is approved, the gas and blob limits would be capped at 45 million and 9, respectively, potentially increasing Ethereum’s throughput by 50%.
Most community members welcomed this proposal as a game-changer for ETH’s performance. Mathew Sigel, head of digital asset research at VanEck, said the proposal could “bring some of the power back to L1.”
“Big #ETH improvement proposal could move some privileges back to L1. Hint for further acceleration. 50% throughput increase on both L1 and L2 (via BLOB).”
At the time of writing, many of the potential negative effects of this proposal were unknown. However, Siegel believed this move would help reverse ETH’s decline in value.
FYI, ETH has been the subject of intense FUD recently. After the Blobs update in March 2024, investors blamed the decline in its value on its inflationary nature.
It remains to be seen whether this proposal will be approved and change the dynamics of ETH.
Source: ChainSpect
However, at the time of writing, Solana (SOL) was the fastest blockchain. Speeds were up to 785 transactions per second (tps). Once the Firedancer client is up and running on mainnet, it can reach thousands or millions of TPS.
Meanwhile, ETH ranked 15th on the list of fastest blockchains. Even with L2 scaling solutions, they are no match for SOL. That being said, this proposal could help ETH fill the gap.
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