- Key Takeaways
- What is an Ethereum Improvement Proposal (EIP)?
- Types of Ethereum Improvement Proposals (EIPs)
- How EIPs Are Created and Approved
- Significant EIPs in Ethereum History
- Why do EIPs Matter for the Future of Ethereum?
- How to Track and Stay Updated on EIPs
- Closing Thoughts
- Frequently Asked Questions
Key Takeaways
- Ethereum Improvement Proposals (EIPs) are the backbone of Ethereum’s evolution, enabling community-driven upgrades and innovations to the network.
- EIPs are categorized into core, networking, and interface types, addressing the different needs of the network.
- Some of the most significant EIPs to date include EIP-1559, EIP-721, and EIP-4844.
- Resources like GitHub, Ethereum Magicians, and the Ethereum Foundation Blog allow community members to stay informed about EIPs.
Ethereum is more than just a cryptocurrency, it’s a vast and evolving ecosystem with thousands of decentralized applications (dApps). Millions of users engage with the network for everything from decentralized finance (DeFi) to digital art, gaming, and beyond.
According to DappRadar, Ethereum supports thousands of dApps, processing millions of transactions. However, to stay relevant and efficient, Ethereum must continually adapt to meet the needs of its users. That’s where Ethereum Improvement Proposals, or EIPs, come into play.
In this article, we’ll explain EIPs, see how they work, and what makes them essential for Ethereum’s future.
What is an Ethereum Improvement Proposal (EIP)?
An Ethereum Improvement Proposal (EIP) is a formal document that suggests changes or updates to the Ethereum network. Developers, community members, and users can submit proposals to improve Ethereum’s protocol, features, or functionality through EIPs. Furthermore, these proposals range from technical adjustments to new standards and features and play a vital role in the network’s governance.
EIPs are the backbone of Ethereum’s decentralized control. Rather than a central authority, Ethereum relies on a transparent, community-driven process where developers, stakeholders, and users contribute to decision-making. Therefore, by providing a structured framework for upgrades, EIPs ensure that improvements are well-documented, thoroughly reviewed, and evaluated by the community.
Types of Ethereum Improvement Proposals (EIPs)
EIPs come in several categories, each addressing a different aspect of the Ethereum ecosystem. The three primary types are:
1. Core EIPs
Core EIPs focus on changes to the Ethereum network’s fundamental protocol, which affects consensus mechanisms and network operations. As a result, these proposals are essential for major upgrades that impact all network participants and typically require a “hard fork” (an update that makes older versions of the software incompatible with the new version) to go live.
2. Networking EIPs
Networking EIPs deal with peer-to-peer communication protocols on the Ethereum network. In other words, they are necessary for establishing smooth, efficient data exchange between Ethereum nodes, which helps ensure the network’s stability, security, and connectivity.
3. Interface EIPs
Interface EIPs are proposals that define standards for dApp developers, including standards for tokens, like ERC-20 or ERC-721, and other application-layer improvements. In addition, these are paramount for fostering interoperability between different applications on Ethereum, as well as standardizing the implementation of new features.
How EIPs Are Created and Approved
The EIP creation and approval process is collaborative and transparent and it involves the entire Ethereum community. Here’s a brief overlook of how it works:
- Drafting the Proposal – Anyone with a new idea for Ethereum can draft an EIP and submit it to GitHub. The proposal must include the purpose, background, and technical specifications of the suggested change.
- Community Feedback – Once submitted, the EIP is open for community review and feedback. Ethereum developers, community members, and other stakeholders weigh in, offering suggestions, improvements, or criticism.
- Discussion and Revision – Based on the feedback, the author refines and updates the proposal. This process may take multiple rounds of revisions, especially for complex or controversial changes.
- Review by Core Developers – Once the proposal is refined, it is reviewed by Ethereum’s core developers, who assess the technical feasibility and potential impact of the proposed change. If the EIP is a core protocol upgrade, it will be carefully evaluated for any risks to the network.
- Approval and Implementation – Lastly, if the EIP passes review, it is approved and slated for implementation. Core EIPs that impact the entire network may require a hard fork, while others may be included in scheduled upgrades.
Through this process, Ethereum’s community plays an active role in its development, ensuring a decentralized and inclusive approach to governance.
Significant EIPs in Ethereum History
EIPs might sound like a niche topic, but chances are you’re already familiar with some of them. Here’s a look at a few key EIPs that have had a major impact on the Ethereum network:
EIP-1559
Implemented in August 2021, EIP-1559 fundamentally changed Ethereum’s fee structure by introducing a “base fee”. In addition, this new fee was burned (or permanently removed from circulation) with each transaction. Therefore, the mechanism made Ethereum’s gas fees more predictable, alleviated fee volatility and introduced a deflationary aspect by reducing the total supply of ETH over time.
EIP-721
EIP-721 came out in 2018 and introduced the standard for non-fungible tokens (NFTs) on the Ethereum blockchain. Consequently, it revolutionized the creation and management of unique digital assets. Unlike fungible tokens, which are interchangeable, NFTs created under the ERC-721 standard are one-of-a-kind and indivisible.
By providing a framework for ownership, metadata, and transferability, EIP-721 laid the foundation for the booming NFT ecosystem. The proposal unlocked new possibilities for creators and redefined digital assets globally.
EIP-4844
Also known as “proto-danksharding”, EIP-4844 went live in March 2024 and significantly reduced transaction fees on Ethereum Layer 2 rollups. It achieved this by introducing a new type of transaction called “blob-carrying transactions.” These blobs allow large amounts of data to be processed more efficiently, lowering costs for rollup-based scaling solutions.
At the same time, it preserved the security and decentralization of the Ethereum network. Lastly, EIP-4844 was a critical step toward full danksharding, which will enable Ethereum to scale for mass adoption without compromising.
These EIPs are just a few examples of how proposals can introduce game-changing features, while also increasing efficiency, and enhancing Ethereum’s appeal to developers and users.
Why do EIPs Matter for the Future of Ethereum?
EIPs are essential for Ethereum’s growth and sustainability. In addition, EIPs help address emerging needs, ensuring that the network can handle more users, more dApps, and more use cases.
EIPs also reinforce Ethereum’s commitment to decentralized governance. Unlike traditional companies, where internal decisions rule, Ethereum’s improvement process is open to anyone with a valuable idea. This community-driven approach helps build trust in the network and fosters innovation from all corners of the Ethereum ecosystem.
How to Track and Stay Updated on EIPs
Staying informed about Ethereum’s development is easier than ever, thanks to several resources. If you want to check the latest updates, you should have a look at:
- GitHub: Ethereum’s GitHub repository is the primary source for all active and proposed EIPs. You can review the technical specifications and monitor discussions surrounding each proposal.
- Ethereum Magicians: A community forum dedicated to discussing Ethereum’s technical challenges and EIPs. In addition, Ethereum Magicians is a great way to engage with developers and learn about upcoming proposals.
- Ethereum Foundation Blog: The Ethereum Foundation regularly publishes updates on major developments, including significant EIPs and network upgrades.
These resources not only provide an in-depth view of how recent and upcoming changes but also inform the community about what’s next on the Ethereum roadmap.
Closing Thoughts
Ethereum Improvement Proposals are the backbone of Ethereum’s evolution. Furthermore, they provide a structured, decentralized approach to implementing new features and refining the network. Understanding EIPs is essential for anyone curious about Ethereum’s future, as they represent the network’s commitment to growth, transparency, and decentralization.
In conclusion, EIPs will continue to play a crucial role in ensuring that the network remains secure, efficient, and aligned with the community’s needs.
Frequently Asked Questions
What is an Ethereum Improvement Proposal (EIP)?
An Ethereum Improvement Proposal (EIP) is a document that suggests changes or improvements to the Ethereum network, covering everything from technical updates to new standards for developers.
Why are EIPs important?
EIPs guide the ongoing evolution of the Ethereum network, ensuring it can meet user demands and remain competitive. They also provide a decentralized way for the community to contribute to Ethereum’s development.
What are some examples of EIPs?
EIP-1559, which changed Ethereum’s fee structure, and EIP-721, which introduced NFTs, are two notable examples that significantly impacted the network and its ecosystem.
How can I stay updated on EIPs?
You can follow Ethereum’s GitHub repository, join the Ethereum Magicians forum, or read the Ethereum Foundation’s blog for the latest news on EIPs and network developments.
