The Ethereum EIPs You Should Know in 2024

The Ethereum environment is well-known for its propensity for innovation, with new upgrades entering the market regularly and sending investors into a frenzy of predictions and estimations. Most keep their eyes on the ETH price chart at all times in order to anticipate the arrival of price changes. Following the previous ones, during which the withdrawal of staked coins became a possibility, users are eagerly waiting for the newcomers.

Luckily, in the case of ETH, they won’t have to wait for long, as the platform already has projects underway. If you’re part of the trading community as well and would like to be well-prepared for the rest of 2024, here are the EIPs you should watch out for if you want to have a successful trading experience.

What are EIPs?

EIPs, also known as Ethereum Improvement Proposals, are documents providing information about what could be done to improve the trading landscape and improve the community at large. The Ethereum community is naturally very interested in them, as the changes they bring impact investment endeavors, so investors need to remain aware and refashion their strategies based on what they learn. EIPs typically follow standardized formats and propose direct changes for the blockchain, including in areas like the protocol, network architecture and the different specifications affecting the clients.

There are different types of Ethereum Improvement Protocols, including Core EIPs that deal with consensus forks and other matters of core development, Meta EIPs that address conventions and processes, Informational EIPs that discuss knowledge and the best practices the network should be interested in, and Standard Track EIPs that propose the biggest changes with the potential to alter the entire blockchain.

EIP-4844

Also known as proto-danksharding, this proposal has been widely anticipated by all members of the Ethereum community. It finally arrived in March 2024, being an integral part of the recently launched Dencun upgrade that arrived on the blockchain on the 13th. Its aim was to reduce the fees associated with transactions on the layer-2 networks, mainly those implementing roll-up tech. Data availability is also a top priority of this particular EIP, as it creates a new way to deal with temporary data by arranging it into extensive collections known as blobs, which are ultimately removed after a predetermined time.

Each blob has approximately 125 kilobyte payloads stored on the consensus layer, with the latest upgrade slashing the overhead storage to promote cheaper transactions. However, some investors have already begun to discuss the potential drawbacks that could emerge as a result, including the possibility that some could take advantage of the cost-effectiveness. Others are already prepared for full danksharding and the arrival of more complex scaling solutions to unlock Ethereum’s true potential and boost its capabilities.

EIP-4788 

This proposal is also known as a Beacon Block Root Commit owing to the fact that it deals with the Beacon Chain, Ethereum’s foundational component, which keeps track of the validators, coordinates them and creates the consensus mechanisms. The stakes and the general state of the network are also the work of the Beacon Chain, and communicating between these different areas was previously ensured through the use of an application programming interface, also known as an API.

The EIP-4788 works by introducing a beacon block root within the execution blocks. This is akin to upgrading a library catalog using real-time technology, something that enhances effectiveness and security. Both applications and smart contracts located on the EVM can bring up-to-date information about the network, something that is particularly useful in the case of staking or bridges.

EIP-1153 

One of the reasons why transactions on the Ethereum blockchain have earned a reputation for being expensive is that all the data was recorded and stored directly on the blockchain. This document is also referred to as transient storage opcode, as it employs temporary storage solutions to mitigate the issue. It works somewhat similarly to the standard computer RAM, enabling short-term storage as well as data access with the help of a single transaction. This reduces gas costs and relieves some of the burden that comes with having permanent storage on the blockchain.

Smart contracts are able to operate quicker and more efficiently as data retrieval accelerates and the demand for long-term storage decreases. Programmers can then use more transient options without worrying about the possible risks, and they can also hold variables, communications and calculations within one single transaction. These EIPs could potentially usher in a new era of more dynamic blockchain applications.

EIP-5656 

This code was introduced as MCOPY, and its purpose is to streamline the flux of data inside smart contracts. Opcodes are the instructions used to carry out tasks more efficiently, with large copies based on the current ones being noteworthy for their often costly and time-consuming characteristics. EIP-5656 comes to solve this problem by enhancing performance and reducing gas expenses, being particularly useful for the building of complex data structures and the ability to work with arrays while also providing faster memory functions.

This proposal reduces gas expenditures, a considerable problem that has affected the crypto market quite severely over the past few years and which resulted in lower engagement rates and decreased performance overall. Making the market more financially sustainable for all investors matters a great deal for the continuation of the trading environment.

EIP/ERC-6900

The Modular Smart Contract Accounts and Plugins would introduce a standard set for building customizable, more flexible accounts. It uses the foundation of ERC-4337, which would set aside validation from execution and allow for higher speed limits. The upgrade would take this functionality one step forward and use plugins to define the features. This way, it arranges everything into a predetermined compartment so that the platform becomes easier to access and navigate.

It also becomes easier for developers to develop and launch compatible features, allowing users to have more choices and flexibility in how they customize their accounts, all while delivering a better experience overall. Better integration and secure development are some of the further advantages that this EIP brings to the table.

Final Thoughts

The Ethereum environment is constantly changing and modifying, meaning that investors must always be aware of the latest market trends. Knowing what these modifications and additions mean for your portfolio is the first step in guaranteeing your gains are more substantial than your losses.