Ethereum fees could be drastically reduced in the near future due to the introduction of batch transactions. To this end, EIP-3074 will introduce fee and batch sponsorship which will assist in the improvement of ETH transaction costs. In addition, the batch transaction will also be implemented soon which is certain to be quite beneficial.
Fees may be reduced thanks to EIP-3074
Thanks to EIP-3074, a new Ethereum proposal, investors of the second-ranked cryptocurrency may celebrate as the transaction fees look to be decreasing soon. Matt Garnett, an Ethereum developer, was the first one to introduce this proposal to the public via Twitter. In his tweet, he stated that there will be a major upgrade set to hit Ethereum wallets soon, and with this change expiring txs, batch txs, and unordered txs among others will be made accessible for EOAs to send with the relative ease of access.
As of the time of this writing, batch transactions seem to primarily be available within ETH’s smart contracts. This implies that these transactions are mainly being utilized by DeFi as well as DApp developers. Furthermore, with the EIP-3074, wallets can essentially be transformed into ‘smart wallets’ without the need for the deployment of a new smart contract for the purpose of batch transactions.
Sponsored transactions the key motivator for EIP-3074
As it was revealed recently, the latest proposal by Ethereum would seem to be primarily motivated by the desire for sponsored transactions. This refers to users gaining the ability to send any and all transactions without the requirement for the fees to be paid by an external party or individual.
Garnett had also stated the newest proposal could also have a positive effect on fees. Upon elaboration, he revealed that users may feel an indirect effect on the fees that they will pay as the inherent gas cost of any given transaction may be amortized beyond a transaction batch. Moreover, when asked about discounts, he replied by stating that there will in fact be an estimated 20% discount administered for users in the future. He concluded by saying that only those users who have their transactions associated with a sponsor will be able to derive benefit from this.