The central theses
- Ethereum’s developers have come up with a proposal that could improve support for batch processing of transactions.
- The feature increases fee sponsorship capacity and can reduce transaction fees by up to 20%
- The proposal could be part of the July upgrade from Ethereum or a later update, but this is not guaranteed.
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A new Ethereum proposal, EIP-3074, could lower transaction fees by improving support for batch transactions.
EIP-3074 could lower fees
Ethereum developer Matt Garnett presented the proposal on Twitter.
Ethereum wallets may see significant improvements soon. With the proposed change, EOAs can instantly send batch shipments, expiring shipments, out of order shipments, and more. (Thread)
– ً (@lightclients) March 16, 2021
Currently, batch transactions are only available in Ethereum’s smart contracts. This means that the feature is mainly used by DApp and DeFi developers. As explained in the proposal, with this feature a wallet can become a smart contract wallet without having to provision a new smart wallet just for batch transactions.
EIP-3074 is primarily motivated by the need for sponsored transactions – the ability for users to submit transactions where the fees are paid by another party.
Garnett told Crypto Briefing that the proposal could indirectly improve fees as well. “I expect this will have an indirect impact on the fees paid by users as the intrinsic gas cost of a transaction can be written off over a series of transactions.” He added that the expected discount is around 20%.
He concluded that this benefit “only applies to users whose transaction is routed from a sponsor who has stacked transactions from other users, thereby spreading these intrinsic costs”.
When will Ethereum add the feature?
EIP-3074 has been proposed for the Ethereum upgrade in London, which will take place in July. It will be determined on Friday whether the proposal will be accepted in this upgrade.
The main factor that could prevent the feature from being implemented is a possible attack vector. “If a caller has a serious security vulnerability, all accounts that the caller has used in the past are at risk,” Garnett wrote on Twitter.
While the proposal won’t be unveiled in July, the London upgrade will include a more notable upgrade: EIP-1559, which aims to improve charges through charge burning. Ethereum 2.0 will also improve fees by splintering and staking out over time.
In the past few months, Ethereum has seen massive congestion and the average transaction fee is currently $ 21. Hence, lowering fees is critical for the Ethereum developer community.
At the time of writing, this author owned less than $ 75 in Bitcoin, Ethereum, and Altcoins.
EIP-3074 was created by Sam Wilson, Ansgar Dietrichs, Matt Garnett, and Micah Zoltu.
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