Since Ethereum contracts can reach the maximum contract size limit of 24 KB when there are too many features and too much code, a new standard has been developed to help combat this problem.
Programmer Nick Mudge revealed on his blog on July 10 that while Vitalik Buterin’s insistence on using “proxy contracts” might be the possible solution to the limitations, a standardized proxy contract he created called the Diamond Standard could be the icing on the cake. Proxy contracts are contracts that can be kept small by borrowing features from other contracts.
Mudge noted that standard contracts like the ERC1400 security token standards require many functions and events, so implementing a standard contract could easily reach its limitation.
According to Mudge, the Diamond Standard can standardize how programmers can create a small contract by borrowing features from any number of contracts. A contract that implements the Diamond Standard is called a diamond, in order to differentiate it from regular and proxy contracts.
In addition to having many different sides and features, it is also reported that the Diamond Standard has a flexible and transparent method of creating upgradeable diamonds.