The EIP-3074 can improve Ethereum’s transaction costs through decentralization and fee financing.
A new Ethereum proposal, EIP-3074 could reduce transaction fees by improving support for mass transactions.
The EIP-3074 is subject to fee reduction
Ethereum developer Matt Garnett introduced the proposal on Twitter: “Ethereum wallets may be getting a significant upgrade soon. With the proposed change, EOAs will immediately be able to send batch txs, expiring txs, unordered txs, and more” .
Currently, bulk transactions are only available in Ethereum smart contracts, meaning this feature is mainly used by DApp and DeFi developers. As the proposal explains, this feature allows the wallet to be a smart contract wallet without actually implementing a new smart contract wallet just to do bulk transactions.
The EIP-3074 is primarily driven by the need for sponsored transactions – the user submits the transactions but the fees are paid by another party.
This proposal could also indirectly improve fees, Garnett said. “I think there will be an indirect impact on user fees because the intrinsic gas cost of a transaction can be attributed to a series of transactions.” The discount rate is expected to be around 20%, he added.
Garnett concludes that this benefit “is only available to users whose transactions are relayed by a sponsor who has made transactions from other users – thereby distributing that intrinsic cost”.
When will Ethereum add this feature?
The EIP-3074 has been proposed for an upgrade at the London hard fork, which will take place in July. As of today (March 19), it will be determined whether the proposal will be accepted during that upgrade.
The main factor that could prevent the feature from being deployed is a possible attack vector. Garnett wrote on Twitter: “If an intruder has a serious security hole, all the intruder accounts used in the past will be at risk.”
Even if the proposal is not introduced in July, the London upgrade will have a more notable upgrade: EIP-1559, which aims to improve fees through burning. As Ethereum 2.0 grows, fees will also improve through sharding and staking.
Over the past few months, Ethereum has been facing massive congestion and its average transaction fee is currently $ 21. Hence, it is important for the Ethereum development community to reduce fees.
The EIP-3074 is recommended by core developers Sam Wilson, Ansgar Dietrichs, Matt Garnett and Micah Zoltu.