In the past few months, the crypto community has learned a lot about the upcoming Ethereum upgrades spoken. These changes will be in the form of this year and next Ethereum EIPs come. These are suggestions for improving Ethereum, specific standards that determine the potential future of the cryptocurrency. Last month the “London Hardfork Upgrade“Which included five new updates called Ethereum EIPs.
In this article you can expect:
A brief introduction to Ethereum EIP
Anyone can create an EIP; All you have to do is read the quote creation and drafting process carefully. The idea behind these proposals is that they will lead to continuous improvement in the Ethereum ecosystem. That London Hardfork Upgrade includes EIP 1559. This is the first steps to be taken to make the Ethereum gas price cheaper and the coin a deflationary asset. These EIPs are preparing for the transition of cryptocurrencies from proof-of-work to proof-of-stake in the next year. In this case, Ethereum could become one of the greenest cryptocurrencies around.
What is the story behind Ethereum EIPs?
In 2015, developers created the Ethereum Improvement Proposal Repository on GitHub, an internet platform for software development. The EIPs were inspired by the Bitcoin Improvement Proposals, and the writing and review process is similar.
A number of editors were appointed in 2015 and 2016 to ensure the quality and clarity of such proposals. This included a key co-founder of Ethereum, Vitalik Buterin. Since then, the team has expanded and changed as demand has changed.
What is an Ethereum upgrade?
An Ethereum EIP (Ethereum Improvement Proposal) is just that – an Ethereum upgrade or Ethereum update. A proposal consists of documents submitted by members of the Ethereum community that suggest improvements to cryptocurrency and smart contracts. A team of editors reviews these EIPs and makes decisions that will be driven forward in the event of a possible upgrade.
An Ethereum EIP usually resembles a lot of research, a summary and motivation (the underlying reasoning), and technical specifications. In addition, it should also include a rationale and information related to backward compatibility, security considerations, test cases, and rationale.
How do EIPs work?
Any member of the community can write EIPs and submit them to GitHub. They are then discussed by members of the Ethereum community and go through an approval process. This also includes going to editors for review.
Forum members and Ethereum enthusiasts also discuss the suggestions and provide valuable feedback to the author. An example of such a proposal could be a change to ERC-20, the technical standard for Ethereum transactions on the blockchain. However, other EIPs may refer to other elements of Ethereum.
Who decides on Ethereum updates?
An editorial committee, including members of the Ethereum community and the Ethereum Foundation, regularly reviews new EIPs. While the editors used to include the founder of Ethereum, Vitalik Buterin, the team has continued to develop with the cryptocurrency.
The team consists of Micah Zoltu, Nick Savers, Nick Johnson, Hudson James, Matt Garnett, Casey Detrio, Greg Colvin and Alex Beregszaszi. An EIP then goes through a series of stations before the upgrade is implemented. This may include additional drafts as part of the process that must be reviewed before approval and implementation. The latest update activated a fork as changes to the Ethereum network came in later that year.
What does that do to the Ethereum price?
In general, people expect increased demand for Ethereum in the coming months, which will drive the Ethereum price up. However, if the upgrade turns Ethereum into a deflationary asset, it could lead to some major changes to the cryptocurrency.
The upside, however, is that the gas fees, the cost of the transaction, are likely to be cheaper. This is partly due to Ethereum moving to proof-of-stake. As a result, this could also lead to an increase in the Ethereum price, which is massively positive for holders of the cryptocurrency.
What does this mean for the future of Ethereum?
In general, Ethereum improvement suggestions will bring positive changes for the community. The key word is “improvement” so this would suggest that cryptocurrency can only get better. However, there will be some suggestions that will not stand up to scrutiny. On the other hand, there is a team of editors and the community to filter these out.
EIPs will continue to shape the future of the Ethereum blockchain for the better in collaboration with the community.
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