TL;DR
- EIP-7742 is included in the upcoming Pectra hard fork to improve Ethereum scalability.
- The new mechanism will allow dynamically adjusting blob gas targets and maximum values.
- An increase in blob count is expected, but other changes are unlikely to be implemented in this update.
Ethereum is in a crucial phase of development with the upcoming Pectra fork, which is scheduled for later this year or early 2025.
In this update, Ethereum Improvement Proposal (EIP) 7742 will be implemented, which introduces a mechanism for the Ethereum consensus layer to dynamically adjust blob gas targets and caps.
quick update from acdc #144, devs have officially included eip 7742 in pectra, eip 7742 creates a mechanism for the CL to dynamically set the blob gas target+max,
with this eip, it's *likely* a blob count increase will also be included in pectra, and *unlikely* other changes to…
— Christine Kim (@christine_dkim) October 17, 2024
This evolution is significant, as blobs, temporary pieces of data that are integrated into transactions, are critical to improving efficiency and reducing costs in Layer 2 transactions.
Christine Kim, VP of Research at Galaxy Digital, reported on this important inclusion after participating in Ethereum’s “All Core Developers” meeting.
According to Kim, the current capacity of blobs is reaching its limit, raising concerns about the scalability of the network in the near future.
According to Kim’s information, the increase in blob count is likely to be part of the Pectra update, while other adjustments such as gas limit or slot time changes are unlikely.
As Ethereum strives to achieve its vision of a more scalable ecosystem, these types of proposals are vital.
The ability to dynamically adjust blob parameters will not only allow for greater flexibility in transactions, but will also help avoid bottlenecks that could impact user experience and network performance.
This development is aligned with Ethereum’s technical roadmap known as “Surge”, which seeks to achieve a capacity of 100,000 transactions per second by combining the Ethereum mainnet and blockchain layers.
Future prospects for Ethereum
The implementation of EIP-7742 could have significant implications for the future of Ethereum, especially in regards to competition with other blockchains scaling solutions.
However, it is important to consider the economic repercussions that this change may bring.
Ethereum’s focus on layer 2s has led to a drastic reduction in its revenue share, which could affect the value of Ether in the long term.
Analysts like VanEck’s Matthew Sigel have pointed out that in recent months, the revenue ratio between Ethereum and its Layer 2s has changed from 90:10 to 10:90, meaning that the majority of revenue now comes from Layer 2s.
This trend could lead to adjustments in Ether price projections, reflecting a more challenging scenario for the cryptocurrency going forward.
Furthermore, Uniswap’s move towards creating its own Layer 2, Unichain, could pose a further challenge to the Ethereum mainnet, by siphoning off even more revenue.
As more projects look to optimize their costs and improve efficiency, the Ethereum mainnet will need to adapt quickly to remain relevant in the competitive blockchain ecosystem.
The upcoming Pectra fork, with the inclusion of EIP-7742, promises to be an important step towards improving Ethereum’s scalability, although the impact on its economic model and the price of Ether will be crucial to its future.
With this evolution, ETH seeks not only to improve its performance, but also to reaffirm its position as a leader in blockchain innovation.
