Ethereum Upgrade Proposes Major Overhaul of Transaction System

Ethereum developer Vitalik Buterin has published an updated Ethereum Improvement Proposal (EIP) 8141, which rewrites how wallets sign, batch, and pay for transactions. This update is part of the next major upgrade to the Ethereum network, known as Hegotá.

The current transaction system on Ethereum allows only one action per transaction, such as sending money or approving a token. However, Buterin's proposal introduces 'frame transactions,' which can carry up to 64 steps in a fixed order. This means that multiple actions can be performed with a single transaction, making the process more efficient.

The update also includes three key changes that users will notice: seed phrases are detached from original keys, allowing wallets to rotate keys or rebuild access through a second device or trusted contact; paymasters enable any app to pay a user's fee, making it easier for newcomers to participate without buying Ethereum first; and the signature scheme is updated to include P256, which is used in passkeys and phone security chips.

Buterin aims to create a more Bitcoin-like design for Ethereum, where simple transactions incur lower gas fees. The current upgrade, Hegotá, has no activation date set, but will be followed by the Glamsterdam gas limit push in Q4 2026.