Ethereum transactions contain two gas fees: transaction execution and data storage.
Vitalik Buterin, co-founder of Ethereum, has put out an enhancement protocol (EIP-7706) for the Ethereum network that would include a new gas model for data related to transaction calls.
Currently, there are two kinds of gas costs associated with Ethereum-based transactions: one for storage, which covers the cost of holding data in “blobs,” and another for transaction execution, which covers the computing work needed to complete a transaction.
Ethereum protocol proposal EIP-7706 by Vitalik Buterin suggests a third gas type reserved for call data, the part of an Ethereum transaction that contains important data sent to smart contracts.
Accordingly, apart from the expenses associated with storing data or running contract code, the Ethereum blockchain will impose a distinct fee on data exchanged during transactions.
The new gas model incorporates a new form of transaction that gives a vector of values for execution gas, blob gas, and call data gas, together with the maximum base price and priority fee.
There are currently two distinct methods for the base fee adjustment: one for the cost of execution of transactions and another for data storage in the form of blobs.
The addition of a third gas charge type prompted Buterin to propose that the Ethereum network standardize its handling of all three.
Streamlining data-heavy transactions that aren’t computationally expensive is the goal of the change. If the plan goes through, the Ethereum network will decide how much it will cost to make a call, apart from any other fees.
Buterin suggested a mechanism that changes costs for all three types of gas at once as a means of controlling them.
Buterin proposed that a distinct gas tax for call data might lead to a significant decrease in the “theoretical max call data size of a block” and, according to fundamental economic analysis, a significant decrease in the overall cost of call data.
Despite the fact that higher scalability and cheaper costs were the primary motivations for shifting from a proof-of-work consensus method to proof-of-stake, the Ethereum network has had gas charge difficulties for years.
Although the network has benefited from succeeding EIPs, modifications have failed to enhance its scalability.
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