Ethereum Shanghai upgrade will implement WARM Coinbase! Builder payments will drop

srgfd (5)

According to “Bloomberg” report, in addition to opening up the withdrawal function of pledged ETH, the Ethereum Shanghai upgrade will also implement some other small changes, such as the EIP called “WARM Coinbase” (which has nothing to do with the exchange Coinbase)- Proposition 3651, which would drastically reduce some of the fees paid by the main ecosystem players “Builders” who already have a lot of influence over Ethereum.

Builders such as Flashbots, BloXroute, etc. will package the transactions sent on Ethereum into blocks, and then forward them to the verifier, who will sort them into the blockchain. At present, Flashbots has built more than 81% of the relay blocks, which is the largest of block builders, which has sparked concern among some observers that Flashbots may use their abilities to seek an advantage, ask for more fees, etc.

According to mevboost.org, 88% of validators have chosen to work with builders since the September merger and upgrade.

Builders are paid for packaging transactions in a specific order, which may allow traders to sell tokens to others at higher prices before others buy them. 

Improve builder economics

One of the reasons for implementing the WARM Coinbase changes is that the move should help improve the economics of builders, the report mentioned. Matt Nelson, product manager at ConsenSys, said some builders could pay the network up to 26 times less after implementation.

Certain users, like builders, need access to a special blockchain software called a coinbase, which is used to receive new tokens on the network, basically a connector that sends to a validator, where every transaction is possible Requires multiple interactions with coinbase.

When accessing the coinbase for the first time, the cost of “warming” the coinbase will be higher, but once warmed, the cost of accessing the coinbase in memory will be lower, and with the change in the WARM Coinbase proposal, the coinbase will be in a warm state Boot, and load into a memory with much lower gas upfront. 

After implementing this proposal, traders using the builder can expect to save a lot of money. William Morris, the sponsor of the EIP-3651 proposal, said the change means that if the transaction does not succeed for whatever reason, there is no need to pay network fees; Nathan Worsley, a trader who uses the builder for complex transactions, estimates that large transactions of traders can expect to save $100,000 or more annually as a result.


Post time: Nov-22-2022