Research Summary
The research report discusses the Ethereum Improvement Proposal (EIP) 4844, also known as Proto-Danksharding. The EIP-4844 aims to introduce some of the logic required for a smooth transition to Danksharding in the future and to introduce blob carrying transactions. The implementation of EIP-4844 is expected to significantly reduce the Data Availability (DA) cost of rollups, which currently accounts for over 90% of total rollup costs. The report also discusses the potential impact of EIP-4844 on the economic structure of rollups and the Ethereum community’s ongoing discussions about changing the cost structure of blobs.
Actionable Insights
- EIP-4844 is a key step towards Danksharding: The Ethereum community has proactively decided to incorporate some parameters of Danksharding, such as EIP-4844, into the protocol during the upcoming Dencun upgrade. This is expected to facilitate a smoother transition to Danksharding in the future.
- Significant reduction in rollup costs: With the implementation of EIP-4844, the DA cost of rollups is expected to be almost free. This could potentially make rollups offer the lowest transaction fees among all existing blockchains in the short to medium term after the introduction of EIP-4844.
- Dynamic determination of blob fees: As per EIP-4844 parameters, blob fees (gas fees) will be dynamically determined by the supply/demand of blobs within its own data gas fee market, which is not affected by blockspace demand.
- Active discussions within the Ethereum community: The Ethereum community is actively discussing changing the cost structure of blobs. Some propose higher blob fees or a lower target number of blobs to expedite the price discovery process.
