What is an EIP (Ethereum Improvement Proposal)?

Alright, no problem. Here's an explanation of EIPs I've prepared for you, hoping to make it easy to understand.

Simply Put, EIPs are the 'Blueprints' for Ethereum's Evolution

You can imagine Ethereum as a decentralized digital 'nation' or a massive online community. For this 'nation' to develop, upgrade, and add new features, it can't just happen chaotically, right? It needs a set of rules and processes to ensure all changes are well-thought-out and widely accepted by everyone.

EIP (Ethereum Improvement Proposal) is at the core of this process.

Anyone, whether you're a developer or a regular user, if you have a good idea for Ethereum, such as:

"I think Ethereum's transaction fee calculation method could be cheaper!"
"We should create a new digital asset standard so that game items can be traded on-chain!"
"There's a small bug in Ethereum's core code, and I suggest this fix!"

You can write your idea into a standardized, formatted document and submit it to the community. This document is an EIP.

Why Are EIPs So Important?

Imagine what would happen if there were no EIPs.

One person decides to change some code today, another wants to add a feature tomorrow, everyone doing their own thing. Eventually, the entire Ethereum network would descend into chaos, or even split into several incompatible networks.

EIPs provide an open, transparent, and orderly platform:

Propose an Idea: Clearly write down your idea so everyone can understand what you want to do and why.
Open Discussion: Your proposal will be published, and Ethereum developers, researchers, and enthusiasts worldwide will review and discuss it. They'll raise questions, offer suggestions, and help you refine your idea.
Reach Consensus: After thorough discussion and revisions, if your proposal proves to be good and viable, and gains acceptance from the community's core developers, it might be adopted.
Unified Action: Once an EIP is finalized, it gets incorporated into the plan for the next Ethereum network "hard fork" (which is a major system-wide version update). At that point, all Ethereum nodes globally (computers running Ethereum software) will perform a unified upgrade according to this new standard.

What Do EIPs Cover? Let's Look at Some Famous Examples

EIPs aren't just about fixing bugs or optimizing performance; their more crucial role is to establish standards. Just like the USB interface standard in our real lives, having a unified standard allows devices from all manufacturers to be compatible with each other.

The most famous types of EIPs are related to "token standards":

ERC-20 (EIP-20): This is the most widely known standard, defining how to create most of the "tokens" we talk about today. You can think of it as the "blueprint for creating fungible tokens." "Fungible" means there's no difference between each token; 1 USDT in my hand is exactly the same as 1 USDT in yours and can be exchanged. Most common altcoins and stablecoins follow this standard.
ERC-721 (EIP-721): This standard defines how to create NFTs (Non-Fungible Tokens). You can think of it as the "blueprint for creating unique digital items." Each ERC-721 token is unique and cannot be interchanged. Examples include digital art, limited-edition game items, domain names, etc. Your "Bored Ape" avatar was created based on this standard.
EIP-1559: This was a significant change to Ethereum's core mechanism. Before it, Ethereum's transaction fees (Gas Fees) were like an auction—highest bidder wins—making them hard to predict. EIP-1559 introduced a new fee mechanism, including a "base fee" and a "priority fee" (or "tip"), making transaction fees more stable and predictable. Additionally, it burns a portion of the transaction fees, introducing a deflationary effect on Ether (ETH).

To Summarize

So, don't overthink EIPs. They are simply:

A "governance framework" and "proposal system" that allows the Ethereum community to orderly propose, discuss, and ultimately decide how to improve and evolve.

It is precisely because of this EIP mechanism that Ethereum can continuously evolve and grow while remaining decentralized, becoming the vast and thriving ecosystem it is today.

Hope this explanation helps you!