The Ethereum Improvements Proposals, or EIP for short, provide a formalized structure to standardize the development of improvements within Ethereum. This framework allows any individual to submit their propositions and make contributions that enrich this blockchain’s advance.
One of the cornerstones in Ethereum’s (ETH) development is their EIP or Ethereum Improvement Proposals, which are technical documents used to make improvement suggestions. This idea was adapted from Bitcoin (BTC), which uses similarly named Bitcoin Improvement Proposals (BIPs). Together, these two systems allow for an open and collaborative solution-seeking process; one that could lead to a groundbreaking new future for cryptocurrency technology.
By introducing this organizational structure, we can ensure a high level of organization among our decentralized development community. This way, any developer has the opportunity to present improvement proposals that are openly discussed and evaluated for potential integration into the Ethereum protocol based on their impact.
The developer of the idea needs to provide thorough explanations about their proposal, substantiate why it would be beneficial for the project, and demonstrate its profitability and impact. As a result, these documents are structured with an explicit intention: to present the future trajectory of this project and allow everyone involved to engage in constructive dialogue.
Start of EIP or Ethereum Improvements Proposals
The inception of the Ethereum Improvements Proposals (EIP) was inspired by Bitcoin’s experiences. To recall, in Bitcoin, BIPs were designed to empower the public to present the improvements they wish to include within the Bitcoin protocol. This concept of BIPs originated from Amir Taaki who suggested and constructed its initial system with his development of Bitcoin BIP-001.
Then the developer improved this idea thanks to his experience of development in free communities (especially, his experience in Gentoo GNU / Linux), creating the BIP-002. From that point to the present, BIPs have been the vehicle that has been used to include new enhancements within Bitcoin. The idea was so successful that it was replicated in other cryptocurrencies, and Ethereum did not escape it.
The Ethereum EIPs, similar to Bitcoin’s BIPs, categorize their improvements into three different classes:
All Ethereum implementations, including Geth (the official implementation of the protocol), are affected by these EIPs. We must keep in mind that Ethereum is a system and its software needs to be understood from all angles. These EIPs can provide us with this understanding, so we should always take them into account when making decisions regarding our network’s functionality.
As specified by EIPs of a Standard type, network protocol changes and improvements to block or transaction validation rules are both covered. Additionally, any proposed modifications concerning application standards and alterations that influence app interoperability – these all fall under the umbrella of an Ethereum-related Standard EIP. Consequently, these types of proposals tend to have the most far-reaching implications for Ethereum’s development trajectory!
Furthermore, Standard EIPs are subdivided into the following categories:
- Basic – In the Basic sub-category of Ethereum Improvement Proposals (EIPs) are those seeking consensus improvements, such as EIP-005 and EIP-0101. This section also includes noncritical enhancements like that seen in proposals like EIP-086 and EIP090. Ultimately, each proposed idea must pass a collective review process before it is officially adopted into the protocol.
- Nets – Enhancing the Ethereum network and its devp2p capabilities (EIP-8) is of pivotal importance, which means that progressing whisper protocol specifications as well as developments pertaining to Ethereum Swarm are prioritized. Nets: this subcategory ensures such progressions take place.
- Interface – This subsection encompasses enhancements to the Ethereum client’s API/RPC specifications and standards. Modifications in ABI and API levels are also included here. EIP-006 is an exemplary illustration of such changes in action.
- ERC – Application level standards and conventions, including contract standards such as; token standards (ERC-20, ERC-721 y ERC-1155), name registries (ERC-26, ERC-137), URI schemes (ERC-67), library/packet formats (EIP-82), and wallet formats (EIP-75, EIP-85).
Another category of EIPs is termed Meta EIPs. These propose a process around Ethereum or suggest an alteration to it, but not necessarily to the Ethereum codebase itself. As opposed to informational EIPs that users can disregard, these kinds require the collective agreement of everyone in the community – they are simply non-negotiable!
Ethereum development can be seen as a prime example of how an effective process EIP looks in practice. This includes alterations to procedures and regulations when it comes to decision-making, as well as changes to the tools or environment used during its construction.
Ethereum Improvement Proposals (EIP) are documents containing information about Ethereum designs and other general guidance that the community should take into consideration. However, it is important to keep in mind that these EIPs do not necessarily represent a consensus of the Ethereum community or even their recommendation since people have the freedom to either ignore them or abide by what they say.
How do they work?
EIP-001 outlines the procedure for operating EIPs. This process starts with a proposal or idea from its author, who then must provide sound evidence that demonstrates why his suggestion is essential and defend it accordingly. The responsibility of developing this proposition lies solely on the writer’s shoulders.
To ensure that their EIP is accepted, authors must craft an idea with clarity and then back it up through exhaustive justification and relevant evidence. By providing a well-rounded explanation in the body of the proposal, they can be confident in its approval.
What is ERC?
Ethereum Request for Comments (ERC) is a technical document crafted by Ethereum developers to uphold standards and create protocols in the Ethereum community. When a developer submits an Ethereum Improvement Proposal (EIP), it includes protocol specs and smart contract regulations which, should they be approved by a committee and confirmed, become ERC – official rules that must be followed when constructing tokens within the ecosystem.
The ERC (Ethereum Request for Comments) is a subcategory of the EIP (Ethereum Improvement Proposal). It can be used to define application-level conventions and standards, such as tokens, URI schemes, or libraries. With an efficient structure and development guidelines in place, developing on Ethereum becomes much easier.
An EIP can take four distinct forms depending on its state:
Draft: Open for debate.
Accepted: Immediate execution anticipated.
Finalized: EIPs, such as the ERC-20 or the more recent non-fungible token standard (ERC721) have been set in motion.
Deferred: Dismissed for now.
A perfect representation of these Ethereum Request for Comments is found in the form of either an ERC20 Token or a Non-Fungible Token conforming to its standards – The ERc721.
Since its invention by Vitalik Buterin, Ethereum has been in a state of perpetual growth. Each new finalized ERC or EIP modifies the way we understand and interact with the platform – that’s why it is essential to constantly stay abreast of all updates regarding different ERCs/EIPs.
Ethereum Improvement Proposals (EIPs) mainly outline Ethereum Core functions, while Ethereum Request for Comment (ERC) protocols are focused on developing decentralized application layers and specifications. ERC is an essential part of the larger EIP umbrella, yet it has become especially popular due to its heavy usage. This is why we often hear so much about them in conversations.