EIP-7732 Could Answer Vitalik Buterin’s Call For Faster Ethereum
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Ethereum developers introduced a new Ethereum improvement proposal, EIP-7732, on July 3, which seeks to overhaul the block validation process to improve the blockchain’s security and performance by separating the process into consensus and execution.This heeds Ethereum co-founder Vitalik Buterin’s call for faster transaction confirmation times, responding to the growing demand for efficiency on the Ethereum blockchain.
“One of the important properties of a good blockchain user experience is fast transaction confirmation times,“ Buterin said.
Historically, Ethereum has lagged behind other blockchains in transaction speeds. Although they have improved to 5-20 seconds following the Merger, other chains are still twice as fast.
A May 2024 CoinGecko report highlighted Ethereum’s absence from the top 10 fastest blockchains, with Solana, SUI, and Binance Smart Chain leading in speed.
How will EIP-7732 work?
In the process, the consensus proposer chooses the execution proposer. The execution proposer then commits to creating a valid block that includes crucial details like payments or block hashes.
📢 Announcing EIP-7732: Enshrined Proposer-Builder Separation!
This proposal revolutionizes Ethereum block validation by separating execution validation from consensus validation, both logically and temporally. It introduces a new role, the builder, and a new responsibility for… pic.twitter.com/o6Iicyed9u
— Collin Brown (@CollinBrownXRP) July 4, 2024
To ensure timely submission, a team of validators called the Payload Timeliness Committee (PTC) monitors the execution proposer’s adherence to their commitment.
Currently, validators must handle both tasks simultaneously, which can slow down operations.
EPBS allows validators to prioritize consensus validation, postponing execution validation. Therefore, it enhances network performance and security without compromising.
Additionally, the proposal introduces a trust-free system for payment and block validation. This eliminates the need for middleware and ensures transparency and reliability.
Ethereum ETFs Will Benefit
Improved transaction speed is critical as the market anticipates the launch of Ethereum spot exchange-traded funds (ETFs). Investors are closely watching the cryptocurrency’s competitive stance.The SEC has approved eight companies to launch Ethereum ETFs, but the approval process is not ongoing. However, according to SEC Chair Gensler, the launch is said to be progressing “smoothly.”As required by the SEC, the funds have started to file their S-1 forms, another layer of the approval process where the regulator examines the specific details of each ETF. The process can take several weeks, but a recent Bloomberg report suggests that it could be expedited so that the ETFs start trading by mid-July.
Bitwise just filed amended S-1 for spot Eth.. which wasn't 'due' until July 8th. Prob just wanted to get it off their plate and from what I hear the last round of comments were 'literally nothing' = took zero time to update. Also, no fee yet. Prob get those next week-ish. pic.twitter.com/1r8xgKcdyC
— Eric Balchunas (@EricBalchunas) July 3, 2024
It is anticipated that the Ethereum ETFs’ launch will be a catalyst for positive Etherium price action.
