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🚀 Ethereum's Dencun upgrade is bringing exciting changes with EIP-4844! 🔥 🤔 Ethereum currently has 2 types of transactions, but EIP-4844 introduces a new type-3 transaction called protodanksharding. 💡 EIP-4844 creates "blobs" - large data packets that can be used by Layer 2 (L2) networks to settle transactions on Ethereum's mainnet. 💰 This helps reduce the high costs associated with posting L2 data through Ethereum's calldata, which L2s currently use. 📦 Each block can have up to 6 blobs, and each type-3 transaction can have 1 or 6 blobs, storing up to 128kb of data. ⏱️ Blobs are only stored for around 18 days, making them cheaper than calldata, which is stored forever. 🧠 EIP-4844 also introduces new transaction and block header fields to manage the blob gas market, similar to EIP-1559. 🤝 This change is expected to substantially reduce posting costs for L2 networks, transforming the market. 🔍 However, L2 operators will need to monitor both the type-2 and type-3 fee mechanisms to determine the most advantageous option. Thus, this Ethereum upgrade will only reduce the fees for layer 2 and not the Ethereum gas fee itself.📈 Reference: IntoTheBlock. (2024, March 11). Ethereum’s Dencun upgrade is set to launch in 2 days! In this chart, you can see the projected cost of a dex swap on various L2s after the upgrade👇 pic.twitter.com/nuymqkro6a. Twitter. https://twitter.com/intotheblock/status/1767222155639460290 Kellerman, B. (2024, February 7). EIP-4844, Blobs, and blob gas: What you need to know. Blocknative. https://www.blocknative.com/blog/eip-4844-blobs-and-blob-gas-what-you-need-to-know #Ethereum #EIP4844 #Dencon #Blobs #LayerTwo #Scaling #Crypto #Blockchain #Web3 #Innovation #TechUpdate #FinTech
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