ETH, the leading altcoin in the cryptocurrency market, is set to make significant improvements to its main network. Vitalik Buterin, the co-founder of Ethereum, has introduced Ethereum Improvement Proposal (EIP) 7706, which aims to enhance the handling of transaction fees on the Ethereum network by introducing a new gas fee category specifically for transaction call data.
Currently, Ethereum transactions involve two main types of gas fees. The first type is used for execution, covering the computational resources required to process transactions. The second type is for storage, relating to the cost of storing large data sets, known as “blobs,” on the Blockchain.
Buterin’s proposal adds a third type of gas fee specifically for calldata, which refers to the data sent to smart contracts when functions are called. This new gas fee category will introduce specific costs for transmitting this data. The introduction of this differentiation will enable more precise cost management, potentially reducing gas fees for transactions that involve large amounts of data but require less computation.
If implemented, Buterin’s proposal will allow the Ethereum network to independently adjust the costs of transmitting transaction call data, separate from other transaction fees. This could result in lower gas fees for data-intensive transactions, making the network more efficient and cost-effective for certain types of transactions.
In addition to proposing the new gas fee category for transaction call data, Buterin has also suggested a unified system for adjusting fees across all three gas types: execution, blob, and calldata. This system will simplify the fee management process by simultaneously managing and adjusting fees for these different gas types, ensuring a more consistent and predictable fee structure.
The proposal introduces a new transaction type that includes vectors for max_basefee and priority_fee. These vectors provide specific values for execution gas, blob gas, and calldata gas, allowing for more detailed control over transaction fees.
This latest improvement proposal follows closely after Buterin, along with Sam Wilson, Ansgar Dietrichs, and Matt Garnett, authored EIP-7702, which focuses on enhancements related to account abstraction. Both proposals are part of ongoing efforts to improve the efficiency and functionality of the Ethereum network.
Investors should note that the information provided in this article does not constitute investment advice. Cryptocurrencies are highly volatile and carry risks. It is recommended that investors conduct their own research before making any investment decisions.
