Ethereum Improvement Proposal 4844 (EIP-4844) Explained Simply
What is Ethereum Improvement Proposal 4844 (EIP-4844)?
The Ethereum Improvement Proposal 4844 (EIP-4844), also known as Proto-Danksharding, is a significant upgrade aiming to enhance the scalability and efficiency of the Ethereum network. This upgrade introduces a new transaction type called blob-carrying transactions, which will significantly reduce Layer 2 transaction costs and improve network throughput.
The core idea of EIP-4844 involves the use of “blobs” – large data packages temporarily stored off-chain but still accessible for a specific period. This strategy is expected to greatly lower the data costs on the Ethereum mainnet, thereby facilitating faster and cheaper transactions. Notably, blob transactions can carry more data than standard Ethereum transactions at a substantially lower cost, supporting the network’s scalability and performance.
EIP-4844 is part of Ethereum’s rollup-centric roadmap, preparing for the implementation of full danksharding, which aims to reach a throughput of approximately 100,000 transactions per second (TPS) without compromising decentralization or security. Danksharding, a type of sharding, partitions the Ethereum network into multiple segments or shards to distribute workloads and enhance transaction processing capabilities. This strategic sharding is designed to split the network into smaller units to independently process transactions, boosting efficiency and reducing network congestion, leading to lower gas fees.
One of the anticipated outcomes of EIP-4844 is a substantial reduction in transaction fees for rollups, potentially slashing these costs by up to 100 times. This would promote wider adoption of Ethereum’s Layer 2 solutions, benefiting users with more affordable transactions. The initiative also introduces effective data pruning, reducing long-term storage needs and aligning with sustainability goals, making Ethereum more eco-friendly.
As of now, the Ethereum Foundation hasn’t specified an exact launch date for EIP-4844, but it’s expected to go live as part of the Ethereum Cancun Upgrade in the first quarter of 2024. The successful implementation of EIP-4844 is set to make Ethereum more competitive in the cryptocurrency space, marking a transformative step in its evolution by addressing key scalability and efficiency challenges
