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Ethereum researchers have proposed cutting transaction finality time from about 16 minutes to four, a change expected to reduce liquidity needs and related costs for cross-chain fund transfers, CoinDesk reported.
Five researchers, including Ethereum researcher Ben Edgington, submitted a draft Ethereum Improvement Proposal on Oct. 21. The initial goal is to make finality four times faster, although the proposal remains at the design stage and no detailed rollout timeline has been set.
Under Ethereum’s current system, a transaction can be included in a block but still take about 16 minutes to reach finality. As a result, cross-chain transfer services that front users funds must keep their own capital locked up until the transaction is finalized. If a service advances $10,000, for example, the same amount of liquidity remains tied up until final settlement.
The researchers said shorter finality times could ease that capital burden. For a service advancing $1 million per hour, funds tied up while waiting for transaction finality would fall to about $67,000 from about $267,000, as faster finality would shorten the cycle for providers to recover and reuse fronted capital.