Ethereum

1/ Last week, Ethereum’s long-awaited Dencun upgrade finally went live on Mainnet

Most notably, the upgrade introduced ephemeral data blobs with EIP-4844, AKA Proto-Danksharding, which reduced rollup transaction fees by 10-100x

Here’s everything you need to know and what’s next

2/ Scaling Ethereum has been a hotly discussed topic, and the implementation of rollups brought significant advancements

Rollups, or L2s, execute transactions offchain, batch the results, and post them in a compressed form to Ethereum’s L1

This = cheaper and faster transactions

Ecosystem /base /coinbasewallet. Consumer & Social /compass /socialgraphvc. Blog dtso.org paragraph.xyz/@cryptso. Host /consumercrypto /consumer /infra /azuki.

3/ Optimistic and ZK rollups have been getting tons of traction

However, it’s expensive and computationally intensive to post their data to Ethereum’s L1

This is because their data were being permanently stored onchain even tho they were only needed long enough to be verified

4/ EIP-4844 introduces blobs, which are used as temporary data storage on Ethereum’s L1

Instead of storing all of a rollup’s transaction data onchain, blobs are a way to preserve the important data in batches and discard the rest

Meaning reduced costs and increased capacity

5/ Blobs create a new blobspace attached to Ethereum blocks, specifically tailored for rollups

Blocks can include up to six blobs, and each blob is available for 18 days before it expires

Blobs are way cheaper than calldata, but their fees still vary based on supply and demand

6/ EIP-4844 makes Ethereum a more efficient data availability layer for rollups

Ethereum now processes both regular transactions that consume blockspace and blob-carrying transactions that consume blobspace

By doing so, rollups are less affected by L1 activity, e.g. an NFT mint

arbitrum

zkSync

starknet

O P T I M I S M 🔴✨

Base

Zora

Mode

7/ EIP-4844 has already led to savings on /arbitrum, /zksync, and /starknet of ~93% and /optimism, /base, /zora, and /mode of ~99%

This has brought users’ transaction fees down 10-100x to a fraction of a cent

Getting us closer to a reality of seamless user experiences

Polygon

Devs on Linea and L2s

Scroll

8/ However, transaction fees may not stay this low forever

Many rollups like /polygon, /linea, and /scroll have still yet to manually integrate EIP-4844

As more rollups implement blobs, we’ll see more competition to use blobspace and a new transaction fee equilibrium

9/ To summarize, EIP-4844 and blobs introduce:

- More efficient data availability
- A cheaper way for L2s to post data on L1
- Lower transaction fees on L2s for end users
- Fee market for blobs unaffected by L1 activity
- Foundation for the full sharding upgrade in the future

10/ The Dencun upgrade has paved the way for more users to come onchain and new use cases like L3s

Overall, this is a huge win for Ethereum and its rollup-centric future

Learn more about EIP-4844: eip4844.com

Support Ethereum core devs: fundcoredevs.xyz

It’s time to usher in the next wave of onchain innovation!!

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https://paragraph.xyz/@cryptso/eip-4844