CDS Crypto News Crypto News Today- Vitalik Buterin Suggests Major Overhaul of Ethereum Gas Model
Crypto News

Crypto News Today- Vitalik Buterin Suggests Major Overhaul of Ethereum Gas Model

43
Crypto News Today- Vitalik Buterin Suggests Major Overhaul of Ethereum Gas Model

Vitalik Buterin Suggests Major Changes to Ethereum Gas Model

Crypto News– Ethereum co-founder Vitalik Buterin has introduced a new Ethereum Improvement Protocol, EIP-7706, which focuses on overhauling the gas model specifically for transaction call data.

At present, Ethereum-based transactions incur two types of gas fees: one for transaction execution, covering the computational effort needed to perform a transaction, and one for storage, covering the cost of storing data in blobs.

Proposed Changes

Buterin’s EIP-7706 suggests introducing a third type of gas fee exclusively for call data — the portion of an Ethereum transaction containing key data transmitted to smart contracts. This new model would allocate a unique charge to data transferred during transactions, separate from the costs of executing contract code or storing data.

New Transaction Type

The new gas model would add a transaction type that provides max_basefee and priority_fee as a vector, offering values for execution gas, blob gas, and call data gas. Currently, the base fee adjustment uses separate mechanisms for transaction execution costs and data storage in blobs.

Buterin proposes a unified approach for managing all three types of gas fees. The goal is to reduce transaction costs for data-heavy transactions that are not necessarily computationally intensive. If accepted, the Ethereum network would independently set the costs for call data.

Dynamic Fee Model

Buterin recommends managing all three forms of gas fees via a dynamic model that modifies fees simultaneously. By implementing a separate gas fee for call data, the theoretical maximum call data size of a block would be significantly reduced, while basic economic analysis suggests that, on average, call data would become considerably cheaper.

Addressing Long-Standing Issues

The Ethereum network has struggled with gas fee issues for years. The primary motivation for moving from a proof-of-work consensus mechanism to proof-of-stake was to achieve greater scalability and lower costs. However, these changes have not improved the network’s scalability as promised, with subsequent EIPs aiding the network.

Buterin’s EIP-7706 proposal aims to address these challenges by introducing a new gas fee structure for call data, potentially making transactions cheaper and more efficient.

FAQs

What is Vitalik Buterin’s new proposal about?

Vitalik Buterin has proposed a new Ethereum Improvement Protocol, EIP-7706, which focuses on introducing a third type of gas fee exclusively for transaction call data. This aims to reduce the costs associated with data-heavy transactions on the Ethereum network.

What are the current types of gas fees on Ethereum?

Currently, Ethereum transactions have two types of gas fees: one for transaction execution, which covers the computational effort required to perform a transaction, and one for storage, which is the cost of storing data in “blobs.”

What is transaction call data?

Transaction call data is the portion of an Ethereum transaction that contains key data transmitted to smart contracts. It is a critical part of executing smart contract operations and often involves significant amounts of data.

For the latest in crypto updates, keep tabs on Crypto Data Space.

Crypto News Today- Vitalik Buterin Suggests Major Overhaul of Ethereum Gas Model

Leave a comment

Leave a Reply

Related Articles

Breaking Crypto News – What are the Advantages of Using EVM RPC for ICP Smart Contracts?

Breaking Crypto News - What are the Advantages of Using EVM RPC...

Crypto News Today- Approach ETH pullbacks with careful consideration

Bitcoin's price fell 15% post spot Bitcoin ETFs, but traders doubt Ether...

Crypto News Today- Nvidia X Bitcoin: Nvidia unlikely to replicate its success against Bitcoin in the next decade

In the last decade, Nvidia, a technology company, surpassed Bitcoin in performance....

Pepe Crypto News – Bitcoin Roller Coaster: From Below $66,500 to Over $69,000

Pepe Crypto News - Bitcoin Roller Coaster: From Below $66,500 to Over...