A new Ethereum Improvement Proposal or EIP, has just been announced in the forum of Ethereum developers.
This EIP is the EIP-3074, a new proposal that is planned to be implemented in the next hard fork, predicted to happen this year or early next year.
What is the EIP-3074
EIP-3074 is a new improvement proposal that introduces a new function on smart contracts that are built on top of the Ethereum Blockchain.
It introduces two new operations to the Ethereum Virtual Machine or EVM which are the AUTH and AUTHCALL functions on the smart contract.
The AUTHCALL function will be its smart contract function that lets a third party invoke, change, or make calls on behalf of the original smart contract created.
The AUTH function will let the third-party smart contract with the AUTHCALL function allow changes to the original smart contract.
This EIP will let a third-party account make changes to another smart contract in terms of its transaction cost, essentially covering it.
For example, a trader called John uses a decentralized exchange called Letswap to exchange BTC for ETH. In this scenario, the transaction will be counted as one smart contract.
With the implementation of the EIP-3047, Letswap can create a smart contract with an AUTHCALL Function to alter the fees on the smart contract that John is using to trade his BTC for ETH.
In John’s smart contract, there is an AUTH function, which means that Letswap has permission to change the fee.
How Will It Impact Ethereum?
The fee changes themselves will only be able to make it lower, even costs nothing, as the EIP will allow third parties to cover the cost of the transaction of a user.
This is similar to the reverse gas model that the Internet Computer Protocol has been implementing, essentially letting the protocol cover the cost of transactions of users so that even newbies can transact on-chain.
The goal of this EIP is to onboard as many users as possible into the Ethereum Blockchain so that users do not have to worry about gas fees when transacting.
This is an important aspect of the blockchain, as the native coin of the blockchain is not always the one that users want to use.
For example, some traders want to trade NFTs on the blockchain, but they don’t always have ETH in their wallets.
This is a problem since users need ETH to pay gas fees, even though they are not transacting ETH itself.
The EIP-3074 wants to fix this problem so that users don't have to worry about gas fees when transacting on the blockchain.
Conclusion
Currently, Ethereum core developers plan to implement this EIP during the net hard fork, which is the Ethereum Blockchain upgrade that is predicted to happen in late 2024 or early 2025.
However, this EIP might open some doors to smart contract vulnerabilities as it lets a third party gain access to a smart contract and alter it.
So, the team is still testing this EIP with improvements on its security aspects to make it safe when implemented on users.
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