The notoriously high gas fees in the Ethereum blockchain have been one of the greatest deterrents to its mass adoption. However, after the Merge and Shanghai upgrades comes the next big ticket item on Ethereum’s development roadmap, which is the Ethereum Improvement proposal (EIP) 4844, called Proto-sharding.
EIP-4844 introduces a new transaction type called blobs. We explain what EIP-4844 is all about and understand what blobs are.
Ethereum Cancun Upgrade
Ethereum Cancun-Deneb, also identified as Dencun or EIP-4844, is the new upcoming upgrade to the Ethereum blockchain. The upgrade is aimed at enhancing the network’s scalability, security, and usability.
The major feature of the upgrade is the inception of Proto-Danksharding, which signifies a changing phase towards full Danksharding. This move is expected to significantly reduce gas fees and increase transaction throughput by utilizing data ‘blobs.’
Bloc-carrying transactions are like any normal Ethereum transaction but have some extra set of data called a blob. The blobs are considerably large and cheaper than the celldata they currently have.
While rollups have helped to scale Execution, Proto-Danksharding (PDS, with EIP-4844) is on track to help scale data availability with blobs. Blobs comes as a new type of gas-saving vehicle where rollups can park transactions and proof data efficiently.
What is Sharding, Danksharding, and Proto-Danksharding?
Sharding is a method mostly used by blockchain networks to enhance capacity and performance. This method is easily achieved through partitioning the network into smaller units called shards. These partitions are capable of processing transactions independently.
Parallel processing, in turn, boosts the efficiency of any network, which in turn lowers network congestion and, as a result, reduces gas fees. Sharding, introduced by Ethereum, is a critical step towards making the network more scalable and accessible.
Danksharding is the current mechanism on the Ethereum blockchain, utilizing Binary Large Objects (blobs), which signify large amounts of data that help further increase transaction throughput. This type of sharding is a full realization of how Ethereum rollups will achieve scalability, and it was created to help in the lowering of transaction costs on the Ethereum network.
Proto-Danksharding is a transitional phase towards full Danksharding. With the introduction of blobs, Proto-Danksharding’s goal is to prepare the Ethereum network for full Danksharding in the coming days. Proto-Danksharding is the main focus of the new Ethereum upgrade (EIP-4844).
How EIP-4844 Helps in Reducing Gas Fees
Blob-carrying transactions, in EIP-4844 act more like sidecars attached to Ethereum transactions. However, they include some additional pieces of information. The blobs are large in size (some up to 128kb) but are inexpensive when compared to the current celldata. As such, they are a cost-effective solution for reducing gas fees.
Blob data is cheaper as the Ethereum Virtual Machine (EVM) cannot access it. The EVM can only view a commitment to the blob.
When EIP-4844 temporarily stores these blobs on the Ethereum consensus layer, EIP-4844 aims at significantly reducing the cost of data from rollups to the Ethereum base layer, hence lowering transaction fees.
The actual gas savings realized by EIP-4844 will depend on the degree to which blobs are adopted, but rough initial estimates show a 10-100x improvement for rollup transaction costs.
Besides the blob-carrying transactions, the new Ethereum Cancun Upgrade will also include the implementation of execution-layer logic, verification rules, and a two-dimensional fee market, all of which are necessary for full Danksharding.
Expected Launch Date of the Ethereum Cancun Upgrade
The Ethereum Devnet-9 is set to launch on September 27, 2023. This testnet will play a crucial role as it will feature a number of changes for the upcoming Cancun upgrade. Some of the EIPs, like EIP-7514 and EIP-7516, will be live for the first time in Devnet-9.
There still needs to be clarity as to when the upgrade will go live on the mainnet.
EIP-4844 will implement some parts of full Danksharding. One part will be a new transaction type with the same format that will exist in full sharding. Also, it will introduce all the execution-layer logic necessary in full sharding, and also the execution/cross-verification logic, and a self-adjusting gas price for blobs.
However, proof-of-custody or any similar in-protocol requirement to verify sharded data in each block will remain pending.
The Advantages of Ethereum Cancun
The Ethereum Cancun upgrade will bring in several benefits to the network, which will include:
- Boosted scalability: Introducing Proto-Danksharding automatically means that there will be a higher volume of transactions and a quicker processing rate. As a result, it will enhance Layer 2 solutions, which operate on top of the main blockchain.
- Reduced Gas Fees: utilizing data blobs and implementing EIP-4844, the upgrade will, in turn, cut down the gas fees, a move that will benefit Layer 2 solutions, making transactions more affordable.
- Top-notch Security: Ethereum’s security infrastructure will be fortified, which will, in turn, safeguard user data and investments.
In a nutshell, the Cancun upgrade is set to make the Ethereum network more adaptable, secure, and user-friendly, which pushed its position in the crypto space.
Final Thoughts
Ethereum’s journey towards addressing its long-standing issue of high gas fees takes a significant step forward with the introduction of Ethereum Improvement Proposal (EIP) 4844, also known as Proto-Danksharding. This upgrade, part of the Ethereum Cancun-Deneb release, promises to enhance the Ethereum network in multiple ways, ultimately making it more scalable, secure, and user-friendly.
The primary feature of EIP-4844 is the introduction of “blobs,” a new transaction type that carries substantial amounts of data at a much lower cost than the current cell data. As the Ethereum network continues evolving and improving, upgrades like EIP-4844 will play a crucial role in enhancing the network’s capabilities as it expands closer to a platform for global transactions.