Ethereum co-founder Vitalik Buterin has made a notable contribution to the legal defense fund of Tornado Cash developer Roman Storm, marking his third donation to support the embattled developer. At the same time, the Ethereum network is seeing potential advancements with a newly proposed Ethereum Improvement Proposal (EIP-7781) that aims to reduce block times and increase data capacity.
New Ethereum Improvement Proposal (EIP) to Slash Block Times and Boost Network Capacity
A new Ethereum Improvement Proposal (EIP), known as EIP-7781, introduced on Oct. 5, 2024, is set to transform the Ethereum network by significantly reducing block times and increasing data capacity. Developers claim that the proposal will enhance Ethereum’s overall throughput by 50%, potentially reshaping the landscape of the decentralized network.
The proposal was introduced by Ben Adams, co-founder of Illyriad Games, and seeks to lower the block time on the Ethereum network from the current 12 seconds to 8 seconds. This would not only increase Ethereum’s transaction processing speed but also improve the efficiency of rollups, which are critical for scaling solutions on layer-2 networks. Furthermore, EIP-7781 aims to expand the capacity of blobs, a temporary data structure used to reduce fees on layer-2 networks, making Ethereum more accessible and efficient.
In a post on Oct. 6 to X, a pseudonymous developer known as Cygaar hailed EIP-7781 as the “first huge” step toward improving Ethereum’s base layer. While much of the development community's focus has been shifting toward layer-2 networks as a solution to Ethereum's scalability challenges, this proposal emphasizes enhancing the mainnet itself. According to Cygaar, the implementation of EIP-7781 could have a significant impact on the future of the network by addressing bottlenecks and improving Ethereum's data capacity.
The proposed changes are not only designed to increase mainnet throughput but also to distribute bandwidth usage more evenly over time. This would lower peak bandwidth requirements without increasing the number of individual blocks or blobs, ensuring smoother processing and lower latency, especially for layer-2 solutions.
Support from the Ethereum Community
Ethereum Foundation researcher Justin Drake has publicly voiced his approval of the proposal, noting that EIP-7781 aligns with some of the broader goals championed by Ethereum co-founder Vitalik Buterin and various Ethereum scaling organizations. In particular, reducing block times would make decentralized exchanges (DEXs) like Uniswap v3 more efficient by approximately 22%, according to Drake. He also highlighted that the reduction in block times could potentially save around $100 million annually in arbitrage between centralized exchanges (CEXs) and decentralized exchanges (DEXs), ultimately leading to better execution for Ethereum users.
Drake emphasized that beyond the economic benefits, EIP-7781 would also enhance the user experience for Ethereum smart contracts. Confirmation times would be reduced by 33%, making interactions faster and more fluid. Additionally, the proposal would help to smooth out peak load times by distributing them more evenly across a larger number of slots, reducing the strain on the network during periods of high demand.
While the proposal has garnered significant support, some developers have raised concerns about the potential impact of reduced block times on solo stakers. Shorter block times would require faster execution and more powerful hardware, leading to increased bandwidth and processing demands. This could present challenges for individual stakers, especially those running Ethereum nodes on consumer-grade hardware.
One of the key issues highlighted is the potential for execution state growth—the increase in the amount of data stored on the blockchain. With shorter block times, Ethereum’s state would need to be propagated more quickly, potentially excluding stakers who lack the hardware to keep up with these demands.
Adam Cochran, a partner at Cinnehaim Ventures, commented on X that while the proposal seemed “reasonable,” it was essential to test the hardware requirements and ensure that solo stakers would not be disproportionately impacted. He suggested that as long as the gas limit per block remained unchanged, the proposal should be feasible for most solo stakers. However, he cautioned that any significant increase in requirements for stakers could hinder Ethereum’s long-term goals of decentralization by making it more difficult for everyday users to participate as validators.
The timing of EIP-7781 is particularly notable, as it comes just days after Vitalik Buterin discussed reducing the minimum amount of Ether (ETH) required to become a validator on the Ethereum network. Currently, 36 ETH is required to run a validator node, but Buterin proposed lowering this threshold to 16 or 24 ETH in order to encourage broader participation and improve network security and decentralization.
This proposal to reduce validator requirements demonstrates Ethereum's ongoing effort to strike a balance between scaling the network and maintaining its decentralized nature. However, some in the community are concerned that the increased hardware requirements resulting from shorter block times could counteract efforts to make staking more accessible.
Vitalik Buterin Donates Another 100 Ether to Tornado Cash Developer Roman Storm’s Legal Defense Fund
Vitalik Buterin has once again stepped forward in support of Tornado Cash developer Roman Storm, donating 100 Ether (ETH), valued at approximately $240,000, to his legal defense fund. This marks Buterin’s third contribution to the embattled developer’s cause, as the crypto community rallies behind Storm in his ongoing legal battle.
The donation is part of a growing movement within the cryptocurrency space to support developers facing legal challenges for their work on open-source projects. Storm, one of the creators behind Tornado Cash, a privacy-enhancing cryptocurrency mixing service, has been embroiled in a contentious legal fight in the United States.
The crowdsourced defense fund for Roman Storm has amassed over 327 ETH, currently valued at approximately $785,000. According to the Defend Roman Storm crowdsourcing page, this total has been collected from 148 individual contributions. The fund has been a lifeline for Storm, who faces the daunting prospect of a lengthy legal process and potentially severe consequences if convicted.
In response to Buterin’s latest donation, Storm expressed his gratitude, saying, "I can't describe how much it means to me. Thank you for your long-lasting support."
Roman Storm is facing serious legal challenges in the United States, where he has been charged with multiple offenses related to his involvement with Tornado Cash. The case took a crucial turn on Sept. 26, 2024, when US District Judge Katherine Failla denied Storm’s motion to dismiss the charges, allowing the legal proceedings to move forward.
Judge Failla ruled that the charges were not without merit and stated that she “cannot simply accept Mr. Storm’s narrative that he is being prosecuted merely for writing code.” This decision came as a significant blow to Storm’s defense, which hinges on the argument that Tornado Cash is open-source software, freely accessible and usable by anyone, and therefore not under the control of its developers.
Storm has pleaded not guilty to all charges, maintaining that Tornado Cash was created as a tool for privacy, and that its open-source nature should absolve developers from legal liability. However, if convicted on all counts, Storm could face a maximum prison sentence of 45 years, a prospect that has caused widespread concern within the cryptocurrency and developer communities.
In response to Storm’s legal woes, the crypto community has rallied around him, with developers, investors, and privacy advocates contributing to his defense. In June 2024, a decentralized organization known as JusticeDAO was formed to crowdsource funds for the legal defense of Tornado Cash developers. JusticeDAO successfully raised over 654 ETH, valued at more than $1.5 million, which has been used to support legal efforts for Storm and other developers associated with the project.
Sanctions and the Resilience of Tornado Cash
Despite the legal pressure and sanctions from US authorities, Tornado Cash has continued to operate and attract users. The service, which allows users to obscure the origins of their cryptocurrency transactions by mixing coins with others, was sanctioned by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) in 2022. The sanctions were intended to prevent the use of Tornado Cash for money laundering and other illicit activities.
However, the sanctions have proven largely ineffective in curbing the use of the service. In the first half of 2024 alone, deposits into Tornado Cash reached approximately $1.9 billion, representing a 50% increase compared to the previous year. The resilience of the platform can be attributed to its decentralized nature — users can create pseudonymous wallet addresses on demand, bypassing the restrictions imposed by centralized exchanges that comply with OFAC’s know-your-customer (KYC) controls.
This surge in Tornado Cash deposits brings attention to a key tension in the ongoing debate over privacy and regulation in the cryptocurrency space. While US authorities seek to limit the use of privacy-enhancing tools like Tornado Cash, users continue to flock to these services in pursuit of financial anonymity.
The case against Roman Storm has raised important questions about the legal responsibilities of developers who create privacy-enhancing software. Supporters of Storm argue that open-source software should remain free from legal prosecution, as developers do not have control over how their tools are used once released to the public. Critics, however, contend that developers have a responsibility to ensure that their creations are not used for illegal activities.
The outcome of Storm’s case could have far-reaching implications for the future of privacy-focused technologies in the cryptocurrency sector. A conviction could set a precedent that holds developers accountable for the actions of users who leverage their open-source tools, potentially stifling innovation in the space. Conversely, a successful defense could reaffirm the notion that developers should not be punished for creating privacy technologies, even if those technologies are used for illicit purposes by some.
