As Ethereum evolves, one emerging concept is changing how transactions are included and executed: preconfirmations. While still in early stages of implementation, preconfirmations represent a new primitive for validators, users, and applications. For staking providers, they present both an opportunity and a responsibility. Figment is closely monitoring these developments and their implications for institutional staking operations, in addition to testing many of these solutions.
What Are Preconfirmations?
Preconfirmations are commitments that a transaction will be included and executed in an upcoming Ethereum block. Think of it as a block builder giving a credible commitment that your transaction is locked in before the block is even created.
Instead of waiting ~12 seconds for the next block to confirm a transaction, a user or protocol can receive an immediate preconfirmation that gives a strong assurance that their transaction will be included ahead of time. These promises are typically enforced through economic incentives: the entity making the promise (often a validator or builder) stands to lose some ETH if they fail to include the transaction.
Why Preconfirmations Matter
Preconfirmations help bridge the gap between the fast feedback loops users expect (especially in DeFi and rollups) and the slower pace of block confirmations.
Here’s why they matter:
- Faster Feedback: Users get near-instant confirmation that their transaction will be included and honored, even if the actual block is a few seconds away.
- Execution Guarantees: Traders and apps can lock in ordering and execution ahead of time, minimizing failed transactions.
- Fairer Access to Blockspace: Preconfirmations could democratize access to priority execution by turning it into a transparent market, not just a mempool lottery.
Preconfirmation Solutions:
There are numerous teams that are building out preconfirmation solutions:
- commit-boost – A new Ethereum validator sidecar designed to standardize communication between validators and third-party protocols.
- primev – Developer of mev-commit, a credible commitment network used for preconfirmations and beyond.
- Chainbound’s BOLT – A trustless proposer commitments protocol that enables sub-second preconfirmations.
- NuConstruct – Creator of TOOL (Trustless Orderflow Operations Layer), a TEE-based (Trusted Execution Environment) processing solution that provides execution guarantees with 1-second confirmations.
- ETHgas – A marketplace for sourcing and trading blockspace commitments, including the Base Fee itself.
At Figment, we are closely monitoring these developments, actively researching the opportunities and challenges that preconfirmations present for validators. Our goal is to stay ahead of the curve, ensuring that we fully understand how this evolving market could impact staking economics and validator incentives.
Why Stakers Should Care
If you’re staking ETH with a provider, preconfirmations matter. They enable validators to earn additional fees by confirming transactions earlier, potentially boosting overall rewards. More than a technical upgrade, preconfirmations signal a shift in how Ethereum settles transactions and how validators interact with the network.
The Future of Preconfirmations
Preconfirmations could become a core pillar of Ethereum’s execution layer, bringing faster confirmations, stronger guarantees, and a new layer of economic opportunity for validators.
The success of preconfirmation solutions will largely depend on validator participation and risk-adjusted rewards. For institutional staking providers like Figment, the key considerations include the additional revenue potential, operational complexities, and associated risks.
As these solutions mature, they could significantly enhance the Ethereum user experience while creating new revenue streams for validators, marking an important evolution in the network’s functionality.
