Ethereum co-founder Vitalik Buterin has recently initiated an important discussion related to the EIP-7708 update, aimed at improving the Ethereum infrastructure. This proposal is expected to address a long-standing issue in tracking ETH transfers across various transaction types, which has posed challenges for the network for many years.
EIP-7708 is designed to introduce a new logging mechanism for Ethereum transfers, including from both regular accounts and smart contracts. The proposal aims to issue a log every time an ETH transfer occurs, whether through a regular transaction, a CALL action, or a SELFDESTRUCT in a smart contract.
Currently, the logging system is only effective in tracking ERC-20 token transfers, but faces difficulties in tracking native ETH transfers.
While transactions from externally owned accounts (EOAs) can be easily tracked in the transaction list, tracking transfer activities from smart contract wallets is more complex, often leading to unnecessary complications. In the past, many exchanges have had to deal with significant delays or even the inability to accurately identify ETH deposits from smart contract wallets.
EIP-7708 proposes that whenever an ETH transfer occurs, the network will automatically create a standardized log. This log will include three critical data points: the sender address, the recipient address, and the amount of ETH transferred. This change will facilitate developers, exchanges, and users in tracking ETH movements, simplifying the monitoring of all ETH transfers through a unified system.
The greatest advantage of EIP-7708 is the simplification of the process of recording and tracking ETH transfers, which is particularly important for developers and exchanges. It will help ensure that all transactions are easily trackable through a single mechanism, while bringing the ETH tracking capabilities of Ethereum closer to the standards of ERC-20 tokens.
However, there are still some unanswered questions related to this proposal, such as whether the log should also include the fees paid or the withdrawal amounts. Incorporating these elements could increase transparency, but may also significantly increase the volume of logs, raising concerns about performance and storage efficiency on the blockchain.
EIP-7708 is not only an important step in improving the transaction tracking capabilities of Ethereum, but also opens up opportunities for a more transparent and better-managed cryptocurrency ecosystem.
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