Ethereum’s Big Upgrade: (EIP-4844) Reduce Gas Fees

Ethereum to become more scalable, efficient, and affordable. One of the most anticipated upgrades EIP-4844, or Proto-Danksharding—a crucial step toward full Danksharding, Ethereum’s long-term scalability solution to lower gas fees, improve transaction speeds, and enhance Layer 2 solutions like Arbitrum, Optimism, and zkSync.

But what exactly is Proto-Danksharding, and why does it matter? Let’s break it down.


What is Proto-Danksharding (EIP-4844)?

Proto-Danksharding is an intermediate step toward full Danksharding. It introduces a new type of transaction called “blob-carrying transactions.” These transactions contain large amounts of temporary data, making Ethereum much more efficient.

Instead of storing all transaction data permanently on-chain (which is costly), blobs allow data to be stored temporarily and accessed by Layer 2 rollups. This makes rollups much cheaper and reduces gas fees significantly.

Key Features of Proto-Danksharding:

  • Blob Transactions: Large temporary data packets that reduce the storage burden on Ethereum.
  • Temporary Storage: Unlike normal transaction data, blobs expire after a few weeks, reducing long-term costs.
  • Lower Rollup Costs: Solutions like Arbitrum, Optimism, and zkSync will benefit from lower fees, making Ethereum more scalable.

Why is Proto-Danksharding Important?

Ethereum’s biggest challenge has always been scalability and high gas fees. Currently, Ethereum can only process around 15 transactions per second (TPS)—far too low for mass adoption.

Layer 2 rollups help by processing transactions off-chain, but they still need to publish data on Ethereum, which is expensive. EIP-4844 solves this by storing data in “blobs” instead of permanent storage, reducing gas fees by over 90%.

Ethereum Today vs. After Proto-Danksharding

FeatureEthereum TodayWith Proto-Danksharding
Transactions per second (TPS)~15 TPS100,000+ TPS (eventually with full Danksharding)
Layer 2 CostsHigh due to expensive data storage90%+ lower fees for rollups
Storage EfficiencyAll transaction data stored permanentlyTemporary blobs free up space

With lower costs and faster transactions, Ethereum will become more competitive with blockchains like Solana while maintaining decentralization and security.


How Does Proto-Danksharding Work?

1. Blob Transactions Introduced

These transactions allow temporary data storage, reducing the need for permanent on-chain data.

2. Blobs Expire After a Few Weeks

Unlike normal Ethereum transactions, blobs do not stay on the blockchain forever. This prevents unnecessary data buildup.

3. Lower Gas Fees for Rollups

Since rollups like zkSync, Optimism, and Arbitrum will store data in blobs instead of expensive permanent storage, gas fees drop dramatically.

By implementing these changes, Ethereum frees up space, lowers costs, and increases speed.


The Bigger Picture: Full Danksharding

Proto-Danksharding is just Phase 1 of Ethereum’s ultimate scalability plan: Full Danksharding.

What is Full Danksharding?

  • It will introduce 64 blob shards, massively increasing Ethereum’s transaction capacity.
  • Once complete, Ethereum could handle 100,000+ TPS, surpassing payment networks like Visa and Mastercard.
  • This will allow Ethereum to remain decentralized while competing with centralized financial systems.

How Will This Impact Users?

Proto-Danksharding will bring significant benefits for Ethereum users, developers, and investors.

Much lower gas fees (especially for rollups like Optimism and Arbitrum).
Faster Ethereum network, improving DeFi, NFTs, and gaming applications.
Better user experience, making Ethereum more competitive.
Scalability for mass adoption, enabling millions of transactions daily.


When is Proto-Danksharding Happening?

Ethereum developers plan to introduce Proto-Danksharding (EIP-4844) in Q2 or Q3 of 2024 as part of the Dencun upgrade.

  • Full Danksharding is expected in 2025 or later.
  • The Ethereum community and developers are actively testing this upgrade on testnets before the full mainnet launch.

Recent Updates

  • March 2024: Ethereum developers confirmed Proto-Danksharding is in its final testing phase.
  • April 2024: Leading Layer 2 solutions like Arbitrum and zkSync have begun adapting to lower costs post-upgrade.

These updates indicate that Ethereum is on track for a major transformation in scalability.


Final Thoughts

Proto-Danksharding (EIP-4844) is a game-changing upgrade for Ethereum, making it cheaper, faster, and more efficient.

With lower gas fees, better Layer 2 performance, and higher transaction speeds, Ethereum will become more accessible for users and developers alike. As the blockchain space grows, this upgrade will solidify Ethereum’s position as the leading decentralized smart contract platform.

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