Vitalik Buterin Proposes EIP-7706: Here’s What To Know 

Vitalik Buterin Proposes EIP-7706: Here’s What To Know 

Buterin’s Revolutionary Proposal

Cofounder Vitalik Buterin has suggested the Ethereum Improvement Proposal (EIP)-7706 to enhance Ethereum’s transaction efficiency and reduce gas fees. This proposition introduces a novel category of gas dedicated to transaction call data, a segment crucial for transmitting data to smart contracts during function invocations.

Presently, Ethereum transactions operate on two primary gas types: one for execution, covering computational processing, and another for storage, entailing costs related to data storage. However, Buterin’s proposal seeks to establish a third gas type, specifically for call data, assigning distinct costs to transmitted data independent of execution or storage expenses.

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The latest proposal follows EIP-7702, where Buterin, alongside co-authors Sam Wilson, Ansgar Dietrichs, and Matt Garnett, outlined improvements to account abstraction. 

Reducing Costs for Data-Heavy Transactions

EIP-7706’s proposal highlights Ethereum’s continuous drive toward optimizing its protocol and addressing scalability challenges. By introducing a dedicated gas type for call data, the Ethereum network will alleviate gas fees for transactions heavily reliant on data transmission but not necessarily computationally intensive. 

This adjustment could benefit applications requiring frequent data exchanges, such as decentralized finance (DeFi) protocols and non-fungible token (NFT) marketplaces. Buterin’s proposal also advocates for a streamlined fee adjustment system, managing all three gas types—execution, storage, and call data—simultaneously. 

This approach simplifies fee management and ensures fair pricing across different transaction types within the Ethereum ecosystem. The proposed transaction type includes parameters such as max_basefee and priority_fee, providing values for execution gas, blob gas, and call data gas. 

This granular control over gas costs would enable users to optimize transaction fees based on their specific requirements, further enhancing Ethereum’s flexibility and usability. Should EIP-7706 be accepted, Ethereum’s protocol will undergo a significant upgrade.

Ether Options Traders Anticipate Bullish Momentum as June Expiry Nears

The ether options market is witnessing a surge in bullish sentiment as traders eye end-of-June expiry calls above $3,600, according to recent data from Deribit and CoinShares Research. With over 617,000 contracts and a notional value exceeding $1.8 billion, the concentration of call contracts highlights confidence in ether’s potential surge in the coming weeks.

CoinShares Research Associate Luke Nolan pointed out that the strike prices for end-of-June expiry calls are mainly concentrated above $3,600, with $6,500 emerging as traders’ most favored strike price. Moreover, the put-call ratio in the ether options market further reinforces the bullish sentiment. 

On-chain data indicates an increasing number of outstanding calls compared to puts in open interest ahead of the end-of-June expiry date. A put-call options ratio below one signifies a market where call volume surpasses put volume, indicating overall bullish sentiment.

ETH Price Dips Despite Bullish Ether Options Outlook

Meanwhile, the bullish outlook in the ether options market follows a slight dip in ether’s price, which decreased by over 2.4% in the past 24 hours. Ether trades at $2,896 at the time of writing per on-chain data.

However, this dip in price has not deterred options traders from expressing confidence in ether’s potential for upward movement in the near term. The broader cryptocurrency market also experienced a minor downturn, with the GM 30 Index, representing a selection of the top 30 cryptocurrencies, falling by 1.61% within the same period.

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Rudy Harris
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Rudy Harris

Rudy Harris, a dynamo in crypto journalism, intricately unpacks the multifaceted world of digital assets. Renowned for his analytical depth and clear exposition, Rudy's articles serve as an essential compass for those navigating the intricate corridors of blockchain and cryptocurrency, solidifying his stature as a trusted expert.

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