New Ethereum Update Could Reduce Blocking Times and Improve Performance

Ethereum co-founder Vitalik Buterin has made a notable contribution to Tornado Cash developer Roman Storm’s legal defense fund, marking his third donation to support the embattled developer. At the same time, the Ethereum network is seeing potential advancements with a recently proposed Ethereum improvement proposal (EIP-7781) that aims to reduce block times and increase data capacity.

New Ethereum Improvement Proposal (EIP) to Reduce Blocking Times and Increase Network Capacity

A new Ethereum Improvement Proposal (EIP), known as EIP-7781Introduced on October 5, 2024, it is intended to transform the Ethereum network by significantly reducing blocking times and increasing data capacity. The developers claim that the proposal will improve the overall performance of Ethereum by 50%, potentially reshaping the landscape of the decentralized network.

The proposal was presented by Ben Adams, co-founder of Illyriad Games, and seeks to lower the blocking time on the Ethereum network from the current 12 seconds to 8 seconds. This would not only increase Ethereum’s transaction processing speed, but also improve the efficiency of rollups, which are critical for scaling solutions in layer-2 networks. Additionally, EIP-7781 aims to expand the capacity of blobs, a temporary data structure used to reduce fees on Layer 2 networks, making Ethereum more accessible and efficient.

In an October 6 post on X, a pseudonymous developer known as Cygaar praised EIP-7781 as the “first big” step toward improving Ethereum’s base layer. While much of the development community’s focus has shifted toward Layer 2 networks as a solution to Ethereum’s scalability challenges, this proposal emphasizes improving the mainnet itself. According to Cygaar, the implementation of EIP-7781 could have a significant impact on the future of the network by addressing bottlenecks and improving Ethereum’s data capacity.

The proposed changes are not only designed to increase core network performance but also to distribute bandwidth usage more evenly over time. This would reduce maximum bandwidth requirements without increasing the number of individual blocks or blobs, ensuring smoother processing and lower latency, especially for Layer 2 solutions.

Ethereum community support

Ethereum Foundation researcher Justin Drake publicly expressed his approval of the proposal, noting that EIP-7781 aligns with some of the broader goals advocated by Ethereum co-founder Vitalik. buterin and various Ethereum scaling organizations. In particular, reducing block times would make decentralized exchanges (DEX) like Uniswap v3 more efficient by about 22%, according to Drake. He also highlighted that reducing block times could potentially save around $100 million a year in arbitrage between centralized exchanges (CEX) and decentralized exchanges (DEX), ultimately leading to better execution for Ethereum users.

Drake emphasized that beyond the economic benefits, EIP-7781 would also improve the user experience for Ethereum smart contracts. Confirmation times would be reduced by 33%, making interactions faster and more fluid. Additionally, the proposal would help smooth out peak load times by distributing them more evenly over a greater number of spaces, reducing strain on the network during periods of high demand.

While the proposal has garnered significant support, some developers have expressed concerns about the potential impact of reduced block times on individual bettors. Shorter block times would require faster execution and more powerful hardware, resulting in higher bandwidth and processing demands. This could present challenges for individual stakeholders, especially those running Ethereum nodes on commodity hardware.

One of the key issues highlighted is the growth potential of running state – the increase in the amount of data stored on the blockchain. With shorter block times, Ethereum state would have to propagate more quickly, potentially excluding stakeholders who lack the hardware to keep up with these demands.

Adam Cochran, a partner at Cinnehaim Ventures, commented on He suggested that as long as the gas limit per block remained unchanged, the proposal should be feasible for most individual investors. However, he warned that any significant increase in requirements for stakers could hinder Ethereum’s long-term decentralization goals by making it difficult for everyday users to participate as validators.

The timing of EIP-7781 is particularly notable, as it comes just days after Vitalik Buterin discussed lowering the minimum amount of Ether (ETH) required to become a validator on the Ethereum network. Currently, 36 ETH is required to run a validator node, but Buterin proposed lowering this threshold to 16 or 24 ETH to encourage broader participation and improve network security and decentralization.

This proposal to reduce validator requirements demonstrates Ethereum’s continued effort to strike a balance between scaling the network and maintaining its decentralized nature. However, some community members are concerned that higher hardware requirements resulting from shorter block times could counteract efforts to make staking more accessible.

Vitalik Buterin donates another 100 Ether to Tornado Cash developer Roman Storm’s legal defense fund

Vitalik Buterin has once again stepped forward to support the developer of Tornado Cash Roman stormdonating 100 Ether (ETH), valued at approximately $240,000, to his legal defense fund. This marks Buterin’s third contribution to the embattled developer’s cause, as the crypto community supports Storm in its ongoing legal battle.

The donation is part of a growing movement within the cryptocurrency space to support developers facing legal challenges for their work on open source projects. Storm, one of the creators of Tornado Cash, a privacy-enhancing cryptocurrency mixing service, has been embroiled in a controversial legal battle in the United States.

The crowdsourced defense fund for Roman Storm has accumulated over 327 ETH, currently valued at approximately $785,000. According to the Defend Roman Storm crowdsourcing page, this total has been compiled from 148 individual contributions. The fund has been a lifeline for Storm, who faces the daunting prospect of a lengthy legal process and potentially serious consequences if convicted.

In response to Buterin’s latest donation, Storm expressed her gratitude, saying, “I can’t describe how much this means to me. Thank you for your lasting support.”

Roman Storm faces serious legal challenges in the United States, where he has been charged with multiple crimes related to his involvement in Tornado Cash. The case took a crucial turn on September 26, 2024, when U.S. District Judge Katherine Failla denied Storm’s motion to dismiss the charges, allowing the legal process to move forward.

Judge Failla ruled that the charges were not without merit, stating that she “cannot simply accept Mr. Storm’s narrative that he is being prosecuted simply for writing code.” This decision was a serious blow to Storm’s defense, which is based on the argument that Tornado Cash is open source software, freely accessible and usable by anyone and, therefore, not under the control of its developers.

Storm pleaded not guilty to all charges and maintained that Tornado Cash was created as a tool for privacy and that its open source nature should exempt developers from legal liability. However, if convicted on all charges, Storm could face a maximum prison sentence of 45 years, a prospect that has caused widespread concern within the developer and cryptocurrency communities.

In response to Storm’s legal troubles, the crypto community has rallied around him, with developers, investors, and privacy advocates contributing to his defense. In June 2024, a decentralized organization known as JusticeDAO was formed to raise funds for the legal defense of the developers of Tornado Cash. JusticeDAO successfully raised over 654 ETH, valued at over $1.5 million, which has been used to support the legal efforts of Storm and other developers associated with the project.

Tornado Cash Sanctions and Resilience

Despite legal pressure and sanctions from US authorities, Tornado Cash has continued to operate and attract users. The service, which allows users to hide the origins of their cryptocurrency transactions by mixing currencies with others, was sanctioned by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) in 2022. The sanctions were intended objective to prevent the use of Tornado. Cash for money laundering and other illicit activities.

However, sanctions have proven largely ineffective in curbing use of the service. In the first half of 2024 alone, deposits in Tornado Cash reached approximately $1.9 billion, representing a 50% increase compared to the previous year. The platform’s resilience can be attributed to its decentralized nature: users can create pseudonymous wallet addresses on demand, bypassing the restrictions imposed by centralized exchanges that comply with OFAC know-your-customer (KYC) controls.

This increase in Tornado Cash deposits draws attention to a key tension in the ongoing debate over privacy and regulation in the cryptocurrency space. While US authorities seek to limit the use of privacy-enhancing tools like Tornado Cash, users continue to flock to these services in search of financial anonymity.

The case against Roman Storm has raised important questions about the legal responsibilities of developers who create privacy-enhancing software. Storm supporters argue that open source software should remain free of legal action, since developers have no control over how their tools are used once released to the public. Critics, however, maintain that developers have a responsibility to ensure that their creations are not used for illegal activities.

The outcome of the Storm case could have far-reaching implications for the future of privacy-focused technologies in the cryptocurrency sector. A conviction could set a precedent that holds developers accountable for the actions of users who take advantage of their open source tools, which could stifle innovation in the space. Conversely, a successful defense could reinforce the notion that developers should not be punished for creating privacy technologies, even if some of them use them for illicit purposes.