Lawrence Damilola
Ethereum developers are preparing to implement an Ethereum Improvement Proposal (EIP) that aims to optimize blob-carrying transactions and enhance the network’s scalability. According to an update shared by Galaxy Digital’s vice president of research, Christine Kim, on October 17, EIP-7742 is set to be included in the upcoming Pectra fork.
quick update from acdc #144, devs have officially included eip 7742 in pectra, eip 7742 creates a mechanism for the CL to dynamically set the blob gas target+max,
— Christine Kim (@christine_dkim) October 17, 2024
with this eip, it's *likely* a blob count increase will also be included in pectra, and *unlikely* other changes to…
The proposal introduces a mechanism for Ethereum’s consensus layer to dynamically adjust the blob gas target and maximum values. Blobs, large temporary chunks of data embedded in Ethereum transactions, were introduced to make layer-2 transactions more efficient and affordable. Vitalik Buterin, Ethereum’s co-founder, recently indicated that the current blob count is nearing capacity, which could hinder scalability. Kim noted that increasing the blob count is likely to be part of the Pectra upgrade.
Flexibility in Blob Handling
Ethereum developer Alex Stokes commented on GitHub that EIP-7742 would make blob handling more flexible by adjusting the blob parameters to align with target values and maximum limits. This change aims to reduce the rigidity of the current fixed blob count and improve the network’s ability to process transactions.
The Pectra fork is expected to happen either by the end of 2024 or early in 2025. Blobs were first introduced through EIP-4844 as part of the Dencun upgrade, which went live on March 13, 2024. Another proposal, EIP-7623, is also under consideration, which could free up more blob space by reducing the maximum block size from 2.7 megabytes to around 1 megabyte.
Ethereum Mainnet Revenue Decline
Layer-2 solutions have led to a decline in the Ethereum mainnet’s share of total network revenue. According to Matthew Sigel, head of digital asset research at VanEck, the revenue ratio between Ethereum and its layer-2 networks has shifted to 10:90 over the past four months. This shift has impacted previous predictions for Ether’s long-term price performance.
First of all, the #ETH $22k price target is for 2030, whereas the Election Prediction was for 2024.
— matthew sigel, recovering CFA (@matthew_sigel) October 17, 2024
But I do agree that the changing fundamentals suggest a model update is in order.
We assumed a 50:50 split on TVL between Ethereum and L2s and 50:50 split on projected MEV (which… https://t.co/RB1ZRVzLaN pic.twitter.com/GiPoQT7IYA
Sigel noted that the prediction for Ether surpassing $22,000 by 2030 was made based on the assumption of a 90:10 revenue split, which has not been the case. If the current revenue ratio continues, Sigel estimates that VanEck’s target price for Ether would drop to $7,330. Additionally, decentralized exchange Uniswap has shifted to its own layer-2 solution, Unichain, which could further affect Ethereum’s revenue share.
Meanwhile, Ethereum developers have reacted to the update. One developer known as “@dapplion” said “Don’t underestimate our ability to stuff forks even more last minute”
Don't underestimate our ability to stuff forks even more last minute
— Lion ⟠ dapplion .eth (@dapplion) October 18, 2024
Other developers have responded negatively to the news.
So corporate centralized ethereum won?
— ethereanbull.eth (@ethereanbull) October 17, 2024
At the time of publication, Ether was trading at $2,618, and according to Coinmarketcap, it had increased by 0.96% in the last 24 hours
Read More
- Buterin Proposes Standards for Ethereum Alignment
- Vitalik Buterin Proposes Increasing Blob Count for Ethereum Network—Here’s Why
- Ethereum’s Vitalik Buterin Responds to Claims That Crypto Market Maturity Has Arrived
Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
