Key Ethereum EIPs to watch in 2024
Ethereum co-founder Vitalik Buterin unveiled the roadmap for the blockchain on X in December 2023, outlining the key focus of the network in the coming years. The plan was quite similar to the roadmap of Ethereum for 2022 and made it clear that Ethereum was moving toward solidifying.
Buterin stressed the role of single slot finality (SSF) for enhancing the blockchain in the post-Merge proof-of-stake (PoS) environment and dealing with the weaknesses in PoS design of Ethereum. Finality ensures permanence in blockchain blocks without burning at least 33% of the total staked Ether
ETH
$3,497
. Ethereum improvement proposals (EIPs) slated for 2024 are focused in the same direction. Among the more prominent proposals, EIP-4844 was already implemented in March 2024, and others are still being worked on. This article discusses EIP-4844, EIP-1153, EIP-4788, EIP-5656, EIP-6780 and EIP-6900.
EIP-4844 (proto-danksharding)
EIP-4844, a major component of Ethereum’s Dencun update, was implemented on March 13, 2024. It has brought down transaction fees on layer-2 networks, particularly those that use rollup technology.
As Dune Analytics demonstrates, on March 11, 2024, at 4:00 pm, the median transaction fees on Optimism and Arbitrum were $0.8432 and $0.7174, respectively. On March 25, 2024, at 6:00 am, the median transaction fees on Optimism and Arbitrum were $0.0065 and $0.0065, respectively.
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EIP-4844 addresses one of the main problems for L2 networks, i.e., data availability, which also helps reduce the costs for L2 solutions. Proto-danksharding enables this by creating a new type of temporary data called binary large objects (blobs), which are removed from the chain after a predetermined period of time.
Previously, rollups used calldata to store transaction data, which was expensive and made the blockchain cumbersome, as the data needed to be processed by all Ethereum nodes and stored permanently on Ethereum virtual machines (EVMs).
Blobs have approximately a 125-kilobyte payload stored on the Ethereum consensus layer, not the EVM, unlike calldata. It significantly slashes the storage overhead and enables transactions to be sent cheaply.
While rollups are the primary beneficiaries of EIP-4844, other use cases that take advantage of this temporary, cost-effective data storage could emerge. EIP-4844 is seen as a significant stepping stone toward full danksharding, a more complex scaling solution that will further enhance Ethereum’s capabilities.
EIP -1153 (transient storage opcodes)
The primary reason for Ethereum transactions being costly was that data was permanently recorded on the blockchain. EIP-1153 uses temporary storage to address this issue. Taking a sophisticated recipe as an example, regularly storing things is like writing down every step and ingredient in an everlasting cookbook.
Conversely, transient storage functions as the chef’s makeshift notepad. Like random access memory (RAM) on a computer, it enables the temporary storage and data access required in a single transaction. This temporary workspace helps reduce the gas cost associated with permanent storage on the blockchain.
As data retrieval accelerates, smart contracts can operate more quickly. As there is less of a requirement for long-term storage, transaction fees decrease. This enables programmers to use transient storage for inter-component communication, calculations and temporary variables within a single transaction. EIP-1153 would open the door for a fresh wave of economical and dynamic Ethereum network applications.
EIP-4788 (beacon block root commit)
Ethereum can be compared to a vast library, with the Beacon Chain acting as its central catalog system and the EVM as the reading room where users interact with smart contracts. The Beacon Chain keeps track of validators, their stakes and the overall state of the network. Previously, communication between these sections relied on the Engine application programming interface, or API.
EIP-4788 enhances this process by including a “beacon block root” (a summary of the Beacon Chain’s state) within execution blocks. This is like upgrading the library’s catalog to a real-time digital system. Smart contracts and applications on the EVM can now access the most up-to-date information about the network, which is particularly useful for things like bridges and staking services.
EIP-5656 (MCOPY opcode)
EIP-5656 has introduced a new opcode called MCOPY to streamline the copying of data inside the memory of smart contracts. Opcodes are instructions that smart contracts use to carry out tasks. Large data copies functioning based on the current opcodes can be expensive and take time.
MCOPY provides a more effective solution for this problem, which reduces gas expenses and enhances performance. It is especially useful for tasks like manipulating arrays and strings and building complex data structures within smart contracts.
Faster memory operations are like having a more efficient filing system for smart contracts that provide developers with more tools to optimize their work, particularly when handling big data sets or intricate memory operations.
EIP-6780 (limited self-destruction)
Smart contracts in Ethereum previously had the ability to fully delete themselves using the “SELFDESTRUCT” opcode. Although convenient, this process is prone to problems. For instance, code and data become disorganized, likely creating security-related issues.
Following the deployment of EIP-6780, a self-destructing contract can still send its remaining Ether to a designated address, but the contract itself will persist on the blockchain. However, this “self-destruction” would only be allowed within the same transaction as the contract’s creation.
By limiting the self-destruct feature, Ethereum aims to simplify data management, increase scalability and better manage the state size. A cleaner system will make the blockchain more stable and adaptable. This supports the scalability and maintenance of the network and simplifies upcoming upgrades to the blockchain.
EIP/ERC-6900 (modular smart contract accounts and plugins)
EIP-6900 (modular smart contract accounts and plugins) introduces a standard for building flexible, customizable smart contract accounts. It builds upon the foundation of ERC-4337, which separates account validation and execution logic, enabling features like session keys, spending limits and more. EIP-6900 goes further by defining a modular system for these features using “plugins.”
Think of it like organizing your toolbox: instead of a jumbled mess, EIP-6900 provides clearly defined compartments for each tool (plugin). This standardized structure makes it easier for developers to build compatible plugins, giving users more choices, flexibility in customizing their smart contract accounts and an overall better experience.
Moreover, EIP-6900 brings advantages like modular design, secure plugin development and seamless integration between smart accounts and plugins.
The road ahead
EIP proposals for 2024 point to Ethereum’s endeavors for better efficiency in operations and augmented scalability. Ethereum continues to embrace technological advancements and upgrade its network, which aligns with the priorities laid out in the document.
The transition process in Ethereum, which started with replacing the proof-of-work (PoW) consensus mechanism with PoS, is still ongoing. It is gearing up to support a blockchain ecosystem that efficiently supports L2 solutions and account abstraction and is sturdy enough to be a part of the financial mainstream.
