Ethereum update could make blocks 33% faster
This week, a new Ethereum Enhancement Proposal (EIP) titled EIP-7781 arrived on the Ethereum network. Introduced on October 5th, the new update aims to reduce Ethereum's block time from 12 seconds to 8 seconds.
With this, the network can facilitate the execution of transactions by improving the waiting time between each block. According to Ben Adams, co-founder of Illyriad Games and creator of EIP-7781, it can also increase data capacity and increase network throughput by 50%.
However, this update may cause difficulties for solo validators, who may have to change their equipment. This brings up old concerns about an eventual centralization of Proof of Stake (PoS) consensus.
Big step for Ethereum
Over the weekend, October 6, a pseudonymous developer known as Cygaar hailed EIP-7781 as the “first big” step toward improving Ethereum Layer 1 performance. They suggested that implementing it could reduce network bottlenecks and improve data capacity.
EIP-7781 is designed to expand the capacity of “blobs,” a temporary data structure that reduces rates in Layer 2 (L2) networks. This expansion allows the main network to also increase its capacity
The proposed changes aim to improve throughput while evenly distributing bandwidth usage. Some hope this will reduce peak demands without increasing the number of blocks, benefiting Layer 2 networks.
Many expressed support for the proposed improvement. In the GitHub thread, researcher Justin Drake of the Etheruem Foundation noted that the plan aligns with broader scaling goals set by Vitalik Buterin, as well as several other scaling organizations.
Drake claimed that reducing block times could improve the efficiency of decentralized exchanges (DEXs) like Uniswap v3 by 22%. As a result, this could save approximately $100 million each year on DEX arbitrage with centralized exchanges.
Furthermore, experts say the upgrade could improve the user experience for Ethereum smart contracts by reducing confirmation times by 33%. The changes would also distribute peak load times more evenly across more slots, reducing strain during periods of high demand.
Risk for solo validators?
However, not all developers were satisfied. Some are concerned about the plan's impact on solo stakers, i.e., validators who don't use pools.
According to some of them, shorter block times would require faster execution and more powerful hardware to validate transactions, which in turn would increase bandwidth and processing demands.
Most validators use conventional equipment, such as notebooks and video cards. But with the new requirement, they might have to spend more resources buying new hardware.
Responding to Cygaar's post, Adam Cochran, a partner at Cinnehaim Ventures, described the EIP as “reasonable.” However, he emphasized the need for the gas limit for each block to remain the same for it to be viable for most users.
Furthermore, the Information Science professor warned that increased demands could harm Ethereum's long-term decentralization goals by making it more difficult for ordinary users to act as validators.