What are EIPs?
Ethereum Improvement Proposals play an essential part in growing and developing Ethereum
Overview
What are EIPs?
EIPs, short for Ethereum Improvement Proposals, are critical documents that suggest ways to strengthen the Ethereum blockchain. They’re well-structured, technical proposals that outline potential upgrades or changes to the network’s protocol, design, or architecture.
EIPs are essential because they ensure Ethereum maintains its transparency and democratic nature. They enable anyone to propose changes, which ensures a diverse range of ideas and solutions from the whole community.
For an EIP to move beyond just an idea, it must follow a strict format and process. This includes a thorough review, open community discussion, and iterative refinement, making sure that only the most robust proposals are considered for implementation.
An EIP’s life starts with drafting, followed by community discussion on forums. Then, it enters consensus building, where developers and the community weigh in. If consensus is reached, the EIP is implemented and finally activated on the Ethereum network after testing.
EIP Categories
There are many different types of EIPs, each with their own distinct focus. There are three primary categories:
Standard Track EIPs can potentially change Ethereum’s core functionality, including network operations, block validation, or contract standards. They are especially important because they can significantly alter the chain’s functionality, impacting everything from developer interactions to user experiences.
Meta EIPs deal with Ethereum’s operational and governance structures, offering modifications that don’t directly change the codebase but influence how decisions are made and implemented. They need community consensus because they shape how Ethereum operates as a whole. EIP-1, which defines the EIP process, is a key example.
Informational EIPs provide guidelines and advice, helping to align the community around best practices and shared knowledge. While they don’t introduce mandatory changes, they play a crucial role in educating and offering a reference point for developers and users.
ERC Meaning
ERC, short for Ethereum Request for Comment, takes a leaf from the internet’s RFCs, documents that have been shaping internet standards since 1969. In Ethereum, ERCs are the outline for token and application standards, which is crucial for ensuring they work well together.
Some key ERC examples include:
ERC-20
This is the go-to standard for fungible tokens on Ethereum, laying out essential rules they need to follow. It covers how tokens can be transferred, how you can check token balances, and how to get details on the token supply. Since ERC-20 tokens are fungible, each one is just like another, making them perfect for creating standardized assets or currencies.
ERC-721
This standard sets the stage for non-fungible tokens (NFTs), which are all about being unique. Every ERC-721 token is distinct and is ideal for representing one-of-a-kind items such as digital art or collectibles (like Bored Apes or Doodles). It includes ways to keep track of who owns what and how owners can transfer their assets.
ERC-1155
Taking things up a notch, ERC-1155 enables both fungible and non-fungible tokens to coexist in a single contract. It can be quite efficient, supporting batch transfers to ease transaction loads and mix different asset types, like in games or DeFi platforms, where you might juggle various tokenized items.
Most Recent EIPs
EIP-4844, known as the Dencun upgrade, introduced “Proto-Danksharding” to improve how rollups handle data in Ethereum blocks. Traditional rollups use “calldata” for transactions, which is costly because it’s stored on-chain permanently, even though rollups only need it temporarily. Proto-Danksharding introduces “blobs,” which are temporary data storages in blocks, not accessible by the EVM, and are deleted after about 18 days. This method makes data handling by rollups more cost-effective, reducing transaction fees for users.
While full Danksharding is still years away, Proto-Danksharding marks a significant step towards lowering Layer 2 transaction costs and boosting Ethereum’s transaction capacity to over 100,000 TPS. Learn more here.
Summary
In summary, Ethereum Improvement Proposals (EIPs) are the outline for refining Ethereum, enabling anyone to have a voice in its evolution. They range from Standard Track EIPs, changing core functions, to Meta and Informational EIPs, shaping governance and providing guidance.
ERCs, like ERC-20 and ERC-721, set standards for token interoperability. The latest, EIP-4844, introduces Proto-Danksharding, a game-changer for rollup data management, setting the stage for Ethereum’s future scalability.
