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Hezekiah
Hezekiah

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ELI5: Ethereum Improvement Proposals (EIPs)

Introduction

The concept of Ethereum Improvement Proposals (EIPs) was introduced in October 2015 (about 8 years ago) via a GitHub repository, as a specific method or system for including potential new features or processes for Ethereum. This is done by proposing, discussing, and implementing those changes to the network.
EIPs can range from core protocol changes to application standards.
Interestingly, anyone in the community can submit an EIP, and then various stakeholders in the community will debate to determine if it should be adopted as a standard or included in a network upgrade. If the community agrees, the EIP is implemented in the Ethereum codebase.

Here is a simple analogy:

Imagine that Ethereum is a big classroom, and the EIPs are like suggestions for how to improve the classroom. Anyone in the classroom can make a suggestion, and then the class discusses it to see if they want to implement it. If the class agrees, the suggestion is implemented.

For example, one student might suggest that the teacher move the whiteboard to a different location. Another student might suggest that the class start a new project. All of these suggestions would be considered EIPs.

EIPs are important because they allow the classroom to improve over time. The class can make changes that benefit everyone by listening to everyone's suggestions.

There are different types of EIPs, including core EIPs for low-level protocol changes that affect consensus and require a network upgrade, and ERCs for application standards.

Below are some EIPs and what their implementation has achieved:

- EIP-1559: This EIP changed the way that transaction fees are calculated and paid, making it more predictable and sustainable.
- EIP-20: This EIP created a standard for fungible tokens, which are the most common type of tokens on Ethereum.
- EIP-721: This EIP created a standard for non-fungible tokens (NFTs), which are unique digital assets that can be used to represent ownership of things like artwork, collectibles, and game items.

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