The Ethereum landscape may be on the cusp of a monumental shift. The key: EIP-4844, a beacon of hope in the eternal battle against exorbitant gas fees. Its magic ingredient? The introduction of the groundbreaking concept called “proto-danksharding.” This novel approach leans on vast data structures dubbed “blobs,” which could unlock unprecedented scalability heights for the Ethereum blockchain.
Coinbase, a giant in the crypto arena, is not merely observing from the sidelines. The imminent rollout of its Layer-2 scaling panacea, Base, has set the crypto community abuzz. Base is already deemed a winner by many, owing to a rich tapestry of collaborations and the undeniable market might of Coinbase.
Without getting too technical (I'll save that for another thread), EIP-4844 will introduce a new transaction format for “blob-carrying transactions” - resulting in much lower gas fees for L2s.
— Miles Deutscher (@milesdeutscher) August 8, 2023
See the estimated effect on gas below: pic.twitter.com/iJdkVni3Cz
At the heart of all this excitement lies EIP-4844. By compacting data blobs, this Ethereum Improvement Proposal allows for data that can't be immediately processed by the Ethereum Virtual Machine (EVM) to remain available. Such data becomes a treasure trove for Layer 2 protocols focused on rollups, enabling them to unclog the network, paving the way for slashed transaction fees.
For Coinbase’s Layer 2 solution, Base, the benefits of EIP-4844 are monumental. As crypto maven Miles Deutscher elucidated on Twitter, the Optimism network, which powers Base, might see gas fees plummet from a steep $0.38 to a mere $0.04!
The ripple effects of EIP-4844 won't just be confined to Coinbase. Deutscher envisions a broader metamorphosis for the Layer 2 ecosystem. By democratizing access through cost reductions, this EIP can thrust L2 solutions into the limelight, making them more enticing than the traditionally pricier Ethereum blockchain.
Its introduction in June made waves, with market aficionados predicting its activation by late 2023. The immediate aftermath saw a boom in Layer 2 assets like Arbitrum, Synthetix, Optimism, and Velo. This EIP, therefore, emerges not merely as an upgrade but a potential driving force that might propel Layer 2 assets into mainstream adoption.
