What is an Ethereum Improvement Proposal (EIP)?

An Ethereum Improvement Proposal (EIP) is a design document providing information to the Ethereum community, typically to improve the Ethereum network. 

EIPs follow a standardized format and are used to propose changes to the Ethereum blockchain. These can include changes to the Ethereum protocol, client specifications or the overall network architecture.

Overview of Ethereum Improvement Proposals (EIPs)

EIPs are pivotal documents in the Ethereum blockchain ecosystem. They serve as formal proposals that suggest modifications or enhancements to various aspects of the network. These proposals are integral to the transparent and democratic governance model that Ethereum espouses, wherein any community member can initiate changes.

EIPs encompass a range of potential modifications, from minor tweaks to significant overhauls that could necessitate a hard fork — a process wherein the blockchain diverges into two separate paths. The EIP framework is designed to ensure that all proposals undergo a meticulous review process and a structured methodology for community input, discussion and refinement.

Types of EIPs

There are numerous types of EIPs, each with a distinct focus.

  • Standard Track EIPs propose changes that could impact the entire Ethereum protocol, such as adjustments to the consensus mechanism.
  • Core EIPs deal with improvements regarding consensus forks and other topics related to Ethereum’s “core development.”
  • Networking EIPs pertain to network protocol specifications.
  • Interface EIPs include changes to "client API/RPC specifications and standards," according to the official EIP website.
  • ERC EIPs apply to changes on application-level standards and conventions, such as token standards, name registries and more.
  • Meta EIPs target Ethereum's processes and conventions, offering enhancements to the project's governance and procedural aspects.
  • Informational EIPs aim to disseminate knowledge and best practices without necessarily suggesting actionable changes to the network.

The classification of EIPs allows for an organized approach to managing and implementing diverse improvements, ensuring that each type of proposal is addressed appropriately and with the requisite level of scrutiny.

How do EIPs work? 

The process for EIPs does not typically involve a direct voting mechanism in the sense of a general vote by the entire Ethereum community. Instead, the decision-making process is often based on rough consensus within the community.

The lifecycle of an EIP generally includes the following steps:

  1. Drafting: The person or team proposing the improvement drafts an EIP and shares it with the community.

  2. Discussion: The EIP is discussed within the community through various channels such as forums, social media and developer meetings.

  3. Consensus building: Developers and community members express their opinions and concerns. The goal is to reach a rough consensus, which means there is broad agreement and minimal opposition to the proposed changes.

  4. Implementation: If sufficient consensus exists, the proposed changes are implemented in one or more Ethereum clients.

  5. Activation: Once the changes are implemented and tested, they may be activated on the Ethereum network.

EIP examples

Notable examples of EIPs include EIP-1559, which restructured transaction fees, and EIP-20, establishing the ERC-20 token standard that has become a cornerstone for token interoperability on the Ethereum network. EIP-721 also introduced the non-fungible token standard ERC-721 to let unique assets be represented on the Ethereum blockchain.

The purpose and importance of EIPs

EIPs are the fundamental mechanisms through which Ethereum's adaptability and innovation are maintained. They serve a critical function by fostering a collective approach to development, where the community's expertise is harnessed to propose, debate and refine enhancements to the network.

The importance of distinguishing between the various types of EIPs cannot be overstated, as it allows the community to address different aspects of the ecosystem with the appropriate level of focus and deliberation. 

This inclusive process ensures that the evolution of Ethereum remains aligned with the needs and values of its diverse user base. The significance of EIPs extends beyond their individual content; they embody the decentralized ethos of Ethereum to demonstrate a commitment to transparent governance and open participation.


Disclaimer: This article was produced with the assistance of OpenAI’s ChatGPT 3.5/4 and reviewed and edited by our editorial team.

© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

MK Manoylov has been a reporter for The Block since 2020 — joining just before bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for the publication, covering any and all crypto news but with a penchant toward NFT, metaverse, web3 gaming, funding, crime, hack and crypto ecosystem stories. MK holds a graduate degree from New York University's Science, Health and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.