EIP-4844 has attracted significant attention due to its aim of addressing the issue of high gas fees. Reports suggest that this proposal holds the potential to substantially decrease gas fees, potentially achieving reductions ranging from 10 to 100 times lower. This reduction is achieved through the introduction of a concept called “proto-danksharding.” Danksharding introduces an innovative sharding architecture that employs sizable data units referred to as “blobs” to enhance the scalability of the Ethereum blockchain. Proto-danksharding acts as a preliminary version of danksharding, providing a foundational framework that can be utilized as a basis for implementing various sharding upgrades in the future.
Coinbase has been actively getting ready for the upcoming rollout of its layer-2 scaling solution called Base. The official launch on the mainnet is set for August 9th. The community is optimistic about the success of this project for several strong reasons. The project’s extensive collaborations and partnerships within the network, combined with Coinbase’s significant presence in the market, contribute to its promising prospects. In the midst of these factors, there’s a notable Ethereum Improvement Proposal [EIP] that has been attracting attention as a possible driving force.
The core of this EIP involves the integration of compacted data blobs, which cannot be directly processed by the Ethereum Virtual Machine [EVM] but remain accessible. Layer 2 (L2) protocols that revolve around rollups harness the added capabilities of these blob data to alleviate network congestion, ultimately resulting in decreased transaction fees. As a result, this development holds significant advantages for Layer 2 networks. According to crypto analyst Miles Deutscher, EIP-4844 could potentially bring benefits to Coinbase’s Layer 2 scaling solution, Base. He shared his thoughts on Twitter, highlighting the potential positive impact of this EIP.
There is an expectation that EIP-4844 will bring about a notable reduction in gas fees across different layer 2 chains. Of particular interest, the Base platform, which leverages Optimism’s technology, stands to gain from this proposal. With the integration of EIP-4844, the Optimism network is predicted to undergo a significant decrease in gas fees, resulting in a cost reduction from $0.38 to $0.04.
EIP-4844’s Influence Spillover: Considerations for Other Layer 2 Chains
Deutscher observed that this specific EIP would create a substantial impact within the realm of Layer 2 (L2) solutions. He expressed this sentiment by stating,
“In general, I see this upgrade as highly beneficial for the L2 space. It will decrease entry barriers for everyday users by reducing costs, while also making L2s more attractive compared to ETH and other (more costly) blockchains.”
The introduction of EIP-4844 in June gained significant attention. This proposal could become operational in the latter part of 2023. Immediately following its announcement, there was a noticeable surge in the popularity of Layer 2 assets like Arbitrum [ARB], Synthetix [SNX], Optimism [OP], and Velo [VELO]. As a result, many participants in the market hold the belief that this EIP could act as a catalyst, speeding up the adoption and usage of Layer 2 assets.