Everything You Should Know About the New Ethereum EIP-7781 Proposal

Published by

Vignesh S G

October 7, 2024

Ethereum has taken a significant step towards enhancing its efficiency and scalability. A groundbreaking proposal, EIP-7781, has been introduced with the goal of slashing block times from a current 12 seconds to a mere 8 seconds. This reduction, amounting to almost 50%, could pave the way for faster transactions, lower fees, and increased adoption of Ethereum-based applications.

But what does this mean for the ETH price? Has this innovative proposal sparked a surge?

Understanding Ethereum’s New Proposal

Illyriad Games’ co-founder introduced EIP-7781 on October 5. At the time, Ethereum’s price was $2,414. Since then, ETH has climbed to $2,488, showing a 2.9% increase over the last 24 hours

Ethereum remains the largest blockchain network by Total Value Locked (TVL) and dominance, holding 57.72% market share and a TVL of $46.86 billion. Over the past 24 hours, Ethereum’s TVL has increased by 0.5%, while its trading volume has risen by 25.8%.

What EIP-7781 Aims to Achieve

The proposal’s main goal is to improve the network’s efficiency, particularly by increasing the latency of rollups—a Layer-2 solution designed to make transactions faster and cheaper. Another key aim is to better distribute bandwidth usage over time, enhancing performance without increasing the number of blocks processed.

Developer Support for EIP-7781

Many developers have voiced strong support for this proposal. Cygaar, a well-known Ethereum developer, called it a major step forward in improving Ethereum’s base layer. Overall, the development community sees EIP-7781 as an important improvement for Ethereum’s core technology.

As Ethereum continues to innovate, EIP-7781 could significantly improve its network performance. Current market data shows that the Ethereum community is excited about the potential of this new proposal.

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Vignesh S G

Vignesh is a young journalist with a decade of experience. A proud alumnus of IIJNM, Bengaluru, he spent six years as a Sub-Editor for a leading business magazine, published from Kerala. His interest in futuristic technologies took him to a US-based software company specialising in Web3, Blockchain and AI. This stint inspired him to view the future of journalism through the lens of next generation technologies. Now, he covers the crypto scene for Coinpedia, uncovering a vibrant new world where technology and journalism converge.