What is EIP – Ethereum Improvement Proposal

An Ethereum Improvement Proposal (EIP) is a design document providing technical specifications for proposed changes to the Ethereum protocol — covering new features, bug fixes, process changes, or standards. EIPs are the formal mechanism through which Ethereum evolves: every significant protocol change begins as an EIP drafted by developers, reviewed by the community, debated, and eventually accepted or rejected through rough consensus. THE EIP LIFECYCLE Idea: Any developer or researcher can draft an EIP. Draft: Formally submitted as a pull request to the ethereum/EIPs GitHub repository. Assigned an EIP number. Review: Ethereum core developers and researchers provide technical feedback. The EIP editor facilitates the process. Last Call: Final 14-day review period. Accepted / Final: Core devs include the EIP in a planned hard fork (network upgrade). Stagnant / Withdrawn: EIPs that lose momentum are marked stagnant or withdrawn. EIP CATEGORIES Core EIPs: Changes to the consensus protocol, state machine, or networking layer. Require a hard or soft fork to activate. Networking EIPs: Changes to peer-to-peer protocol specifications. ERC (Ethereum Request for Comments): Application-layer standards — token standards, interface definitions. ERCs do not require protocol changes. Meta EIPs: Process changes, not technical changes. LANDMARK EIPS EIP-20 (ERC-20): The fungible token standard. Defined the interface every Ethereum token implements. EIP-721 (ERC-721): The NFT standard. EIP-1559: Introduced base fee burning and priority tips. Transformed Ethereum's fee market and created ETH deflationary mechanics. EIP-4337: Account abstraction standard. Smart contract wallets without protocol changes. EIP-4844 (Proto-Danksharding): Introduced blob transactions dramatically reducing L2 data costs — the most important scaling upgrade since The Merge. EIP-7702: Allows EOAs to temporarily act as smart contracts — enhancing account abstraction without full ERC-4337. ETHEREUM GOVERNANCE MODEL Ethereum has no formal on-chain governance voting. Changes happen through social consensus among: Core developer teams (Ethereum Foundation, client teams), researchers, miners/validators, and the broader community. This off-chain, rough-consensus model is slower but considered more resistant to plutocratic capture than token voting.

Terms in addition to the EIP – Ethereum Improvement Proposal

Blockchain

A blockchain is a subset of a distributed database. The Bitcoin inventors originally prototyped the system in 2008. This modern database is made up of separate blocks that are connected together in a chronological chain. Blockchains may be used to store a wide range of data types. It has mostly been utilized as a public ledger for bitcoin transactions to date. A peer-to-peer network comprised of independent nodes uses a consensus process to ensure the blockchain's security and legitimacy. Each node in the network keeps a public and immutable copy of the data.

2 Factor Authentication (2FA)

2 Factor Authentication is a security measure with two layers. It is used by the majority of cryptocurrency exchanges. To log in, you must provide not only a password, but also a code obtained, for example, from the Google authenticator.

Airdrop

An airdrop is a method of distributing coins. End users can typically obtain coins for free or in exchange for doing a small task, such as subscribing to a newsletter, sending a tweet, or inviting others via a personal affiliate link. Cryptocurrency airdrops — the act of depositing cryptocurrency into public crypto wallets — are utilized as a marketing, liquidity creation, and network bootstrapping technique for many different types of blockchain initiatives.

Altcoin

Altcoin - "alternative coin" - is any kind of digital currency other than Bitcoin. Since the launch of Bitcoin, the world's first digital currency, many altcoins (as well as supporting blockchains) have been created. Altcoin digital currencies share many similarities to Bitcoin, but consistently and have significant differences. There are about 20,000 altcoins, and this number is expected to grow significantly in the coming years. Altcoins often develop Bitcoin features. Ethereum, currently the most widely used blockchain, supports digital contracts and separate applications where Bitcoin does not. Altcoins are also often created to cater to the needs of different users. The Litecoin blockchain, for example, can process payments quarterly for the duration of Bitcoin.

Cold Storage

Cold storage is the way to store cryptocurrency offline. The word refers to the use of offline wallets that are not connected to the internet. Cold storage is the most secure way to keep cryptocurrencies since an offline currency becomes less likely to be hacked and stolen. Paper wallets, printed renditions of private keys, and offline hardware and software wallets are all examples of cold storage.