A promising improvement for Ethereum is in sight, with an Ethereum Improvement Proposal (EIP) aiming to drastically reduce the network's block time. This could make the Ethereum network 50% faster and improve the efficiency of decentralized exchanges.

A faster Ethereum blockchain

This concerns EIP-7781, introduced on October 5 by Ben Adams, co-founder of Illyriad Games. The improvement aims to reduce the block time from 12 to 8 seconds, a 33% decrease. While this may seem small, combined with an increased blocks capacity, the throughput of the Ethereum network could increase by as much as 50%. This means Ethereum transactions can be processed faster, and the blockchain is better equipped to handle growing demand.

On October 6, pseudonymous developer Cygaar emphasized on Twitter that this proposal is a "huge first step" towards optimizing the Ethereum core. So far, developers' focus has been on layer-2 solutions, but this proposal shifts the attention back to the mainnet.

More efficiency for DEX platforms

Another important goal of this proposal is to better distribute bandwidth usage over time. This reduces the strain on network resources during peak times without increasing the number of individual blocks. This offers many advantages for decentralized exchange platforms (DEX) like Uniswap v3.

According to Ethereum Foundation researcher Justin Drake, shortening block times could lead to platforms like Uniswap becoming 22% more efficient. This could result in significant cost savings, such as roughly 100 million in CEX-DEX arbitrage per year. Furthermore, it improves trade execution for users, making decentralized trading platforms more attractive.

Risks for decentralization

Although this improvement sounds promising, concerns exist regarding its impact on Ethereum's decentralization. Shorter block times could accelerate data growth on the network, requiring more advanced hardware and bandwidth to support it. This could be a challenge, especially for solo stakers who may not have the necessary resources.

Adam Cochran, a prominent figure in the crypto community, advocates for thorough testing before fully approving the proposal. He warns that stakers may face difficulties if hardware requirements increase.

Future improvements

Interestingly, this proposal comes just days after another idea by Vitalik Buterin, where he suggested lowering the minimum amount of Ethereum needed to become a validator. This could enhance the security and decentralization of the network by allowing more people to stake. Buterin's idea is to reduce the current requirement from 32 ETH to 16 ETH, or possibly even 24 ETH.

Conclusion: EIP-7781 marks a major step towards a faster and more efficient Ethereum. While there are concerns about the potential impact on decentralization, this improvement offers significant gains in network performance and usability. If tests are successful, this proposal could represent a significant advance for the Ethereum ecosystem.