The Main EIP Elements Of The Upcoming Ethereum Update Disclosed By Devs

With a rising cohort of investors monitoring the price of Ethereum and accumulating holdings on leading cryptocurrency exchanges, the need for progress has never been more stringent.

This decentralized blockchain platform is recognized as having achieved an outstanding evolution, extending from a mere store of value and cryptocurrency to a cutting-edge platform for financial services, transforming the way decentralized applications (dApps) are perceived.

Ever since Ethereum was launched, there have been consistent efforts to enhance the network’s energy efficiency, scalability, ease of use, and security. So far, it has undergone remarkable upgrades to escalate to better versions.

While the Merge and Shanghai upgrades might be better known to the typical crypto enthusiast, other significant network updates may not have gathered the same popularity or impacted Ethereum price. These are briefly known as EIPs, or Ethereum Improvement Proposals, and are awaited in the foreseeable future as developers are continuously working on them.

The Dencun upgrade, expected to launch in 2023, includes several EIPs to improve the fee structure and expand storage on the network. Here’s what’s expected from the upcoming update and how these proposals are essential to supporting the network’s adaptability further.

Several EIPs have been introduced so far

For those still familiar with Ethereum’s technological landscape, providing a definition of EIPs is important to comprehend the broader concept better. EIPs represent a set of protocols and standards advised for use on the blockchain platform and refer to smart contract standards, user APIs, core protocols, and so on. Each EIP plan has a definition of a specific protocol or standard. The first EIPs are as old as Ethereum, dating back to 2015, and the Bitcoin Improvement Protocols (BIPs) serve as inspiration.  

An outstanding feature of EIPs is that they permit anyone with knowledge of them to propose improvements. These must be concisely expressed, explicitly drafted, and have a clear objective. This gives every enthusiast in the Ethereum community the possibility to contribute to persistent efforts to improve the blockchain network.

To date, several notable EIPs have been successfully launched, including the following:

EIP-2537. It implemented a new fee structure to improve the user experience while decreasing transaction costs. This was made possible by adding a base fee that adjusts depending on network demand to make it easier to estimate costs and lower congestion.

EIP-2929. It raised the expenses of some operations to make potential attacks costlier and less rewarding for attackers.  

EIP-1559. This inclusion aimed to improve scalability and privacy in the network through a fresh Ethereum-specific opcode.

The Dencun upgrade marks a significant development in Ethereum

The denomination “Dencun” is a mashup of the terms “Cancun” and “Deneb” and represents the next milestone on Ethereum’s journey to becoming a better-performing, scalable network.

Cancun is an extra update aimed at developing the execution layer via several EIPs (Ethereum Improvement Proposals) that will boost gas efficiency and improve scalability. A remarkable inclusion is EIP-1234, aimed at paving the path to the launch of Ethereum 2.0, expected sometime by the end of 2023 or in 2024. It modifies the block reward system and postpones the “difficulty bomb.”

On the other hand, the Deneb upgrade is focused on the consensus layer of Ethereum, improving the consensus systems and security through different inclusions. It’s aimed at updating Ethereum’s Proof-of-Stake system to boost efficiency and strength.

The Dencun upgrade is the next milestone in Ethereum’s history, expected to launch by the end of the year.

Ethereum’s developers announced several more EIPs as part of the upcoming Dencun upgrade

Besides persistent research and efforts to improve the blockchain platform, Ethereum’s team of developers ensures its broad audience is kept up-to-date and informed on upgrades.

Some of the most significant EIPs included in the upcoming upgrade, Dencun, are listed below.

EIP-4844. The EIP-4844, also known as the Cancun upgrade or more often encountered as proto-dank sharding, is touted as the core element of the upgrade and the most important step. This inclusion aims to scale the blockchain by expanding storage for “blobs” of data, introducing blob-carrying transactions. Unlike blocks, the data included will be invisible to EVM, resulting in less processing data and reduced gas fees. Lower transaction costs are the goal of the upgrade, which will only be possible through new verification rules and transaction formats. This is the most important upgrade, as it will improve the network’s scalability and transaction throughput without jeopardizing its decentralization or security.

EIP-1153. This element is designed to enhance the network’s efficiency and lower the fees resulting from storing data for the execution of smart contracts through the introduction of transient storage opcodes. As the name suggests, these serve as a short-term storage space in the execution context of a transaction, and compared to persistent storage, this type of room is not kept in the state of the contract after the transaction is done. It aims to streamline contract interactions, improve contract execution, and diminish the total fees from complex computations.

EIP-4788. Developers behind Ethereum have recently proposed a modification to EIP 4788. This inclusion aims to show the origins of Beacon Chain blocks within the EVM (Ethereum Virtual Machine). EIP-4788 will implement enhancements focused on refining the designs of bridges and staking pools within the Ethereum ecosystem.

EIP-5656. This inclusion aims at boosting the memory copies’ performance by almost 10%, improving the accuracy of code copying through a new EVM instruction for effective memory area copying. It will facilitate different computationally-greedy operations and help compilers create smaller, more efficient byte-code. This proposal will introduce small code modifications related to the EVM.

EIP-6780. This proposal will enable users to delete and create contracts within a single transaction. It also aims to eliminate codes that could hamper the successful deployment of smart contracts.

EIPs are essential to Ethereum’s continuous improvement. 

Much of Ethereum’s efficiency and adaptability are only possible through the implementation of EIPs.

The cornerstone of innovation in blockchain technology will be continuously worked on and developed to serve a more extensive user base and, as such, continue its legacy as a primary financial service provider and contributor to the technology’s mass adoption. More is expected from the developers’ team, so keep a keen eye on the upcoming upgrades to better comprehend what’s in store for the blockchain platform.

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