TLDR: Dencun upgrade in March 2024 introduced Proto-Danksharding (EIP-4844) which improved scalability and reduced transaction costs, particularly on Layer 2 solutions. Pectra upgrade scheduled for early 2025 (no exact date confirmed yet) will further enhance the capabilities introduced by Proto-Danksharding, making Ethereum more scalable and efficient. It will also pave the way for future upgrades and innovations on the network.

In my previous post regarding why I am bullish for ETH in 2025 along with a review of Dencun and Pectra upgrades, I had requests for more detailed information on Proto-Danksharding!

Dencun upgrade introduced Proto-Danksharding (EIP-4844) which significantly reduced transaction fees for Layer 2 solutions, but lets get into more detail!

Proto-Danksharding, also known as EIP-4844, is an important upgrade to the Ethereum network aimed at improving scalability and reducing transaction costs, particularly on Layer 2 solutions. Proto-Danksharding was included in the Dencun upgrade on March 13, 2024 and serves as an interim step towards full Danksharding, which is a more comprehensive scaling solution for Ethereum.

FUN FACT: Proto-Danksharding, EIP-4844, was named after Ethereum researchers Protolambda and Dankrad Fiest!

Key Features of EIP-4844

1. Blob Transactions:
   • Blob-carrying transactions are a new type of transaction introduced by EIP-4844. These transactions temporarily store data in the beacon node, which is then pruned after about 18 days
   • Each blob can hold up to 128 KB of data, and a block can include between 1 and 6 blobs
   • This method reduces the long-term storage requirements on the Ethereum mainnet, making data handling more efficient.
2. Fee Reduction:
   • EIP-4844 significantly lowers transaction fees on Layer 2 rollups by allowing them to store data temporarily rather than permanently
   • This has led to transaction fees on Layer 2s dropping to as low as $0.01
3. Scalability:
   • By offloading data to blobs, EIP-4844 lightens the data load on the Ethereum mainnet, enhancing scalability
   • It sets the foundation for Danksharding, which will further divide data into smaller, more manageable pieces called shards

Why Was EIP-4844 Introduced?

The primary motivation behind EIP-4844 was to address the high fees associated with storing transaction data on Ethereum, which made scaling more expensive than anticipated. The complexity of implementing full Danksharding in the short term led to the development of Proto-Danksharding as a more immediate solution. Yes, the lower fees made a HUGE impact on Ethereum network usage, WOOHOO! I found L2 fees fairly affordable compared to L1 fees, but EIP-4844 made the fees ever lower!

Benefits of EIP-4844

• Lower Costs: By reducing the cost of storing data on-chain, EIP-4844 makes Ethereum more accessible and practical for everyday transactions.
• Improved Efficiency: Temporary data storage through blobs reduces the long-term storage burden on the network
• Enhanced Scalability: The groundwork laid by EIP-4844 paves the way for future upgrades like Danksharding, which will further improve Ethereum’s scalability

Future of Danksharding

EIP-4844 is a crucial stepping stone towards full Danksharding, which aims to optimize data availability and shard block production without increasing the load on validators. As Ethereum continues to evolve, these upgrades will help maintain its position as a leading blockchain platform. The upcoming Pectra upgrade schedule for early 2025 (hopefully Q1 based on history upgrades) will build upon the foundation laid by Proto-Danksharding (EIP-4844).

What Proto-Danksharding changes we can expect with the Pectra Upgrade?

1. Continuation of Data Blobs:
   • The Pectra upgrade will continue to utilize data blobs introduced in Proto-Danksharding. These blobs have significantly reduced gas fees on Layer 2 solutions by allowing temporary data storage
2. Introduction of PeerDAS Protocol:
   • EIP-7594 will introduce a new protocol called PeerDAS, which enables nodes to verify that Layer 2 blob data is available while only downloading a subset of the data. This enhances data availability and efficiency.
3. Improved Scalability and Efficiency:
   • By building on the success of Proto-Danksharding, Pectra aims to further improve Ethereum's scalability and transaction efficiency. This will make Layer 2 solutions even more affordable and practical for users.

FULL DANKSHARDING is years away, but each upgrade expects to build a stronger and improved foundation towards FULL DANKSHARDING and immediate solutions!

I am EXTREMELY excited for the Pectra Upgrade coming early 2025 and the continued improvements we will see in scalability, efficiency, and lower fees!

If you are interested in seeing my previous post regarding: Why I am bullish on ETH 2025 analysis!

ETH to the MOON LFG ????????????