Layer-2 Protocols on Ethereum to Benefit from Reduced Rollup Costs with Dencun Hard Fork

Ethereum's Constantinople hard fork is expected to significantly decrease rollup expenses and redirect scaling initiatives from the main network to layer-2 protocols.

Ethereum focuses on rollup technology as Dencun hard fork approaches.

🔥🚀 Exciting news for the Ethereum community! The upcoming Dencun hard fork is set to bring significant cost reductions for layer-2 protocols scaling the Ethereum blockchain. But hold your horses, because end-users might not experience the full benefit right away. Let’s dive into the details and explore what this means for Ethereum and its users.

🔄 The Dencun Hard Fork and Rollup Protocols

According to David Silverman, VP of Product at Polygon Labs, the implementation of Ethereum’s latest hard fork, featuring several improvement proposals (EIPS), will take about a month and a half or two months to be fully implemented by rollup protocols. After this period, users will finally get to enjoy the full benefits. Patience, my friends!

The Dencun hard fork incorporates a total of nine different EIPs. Its name is a fusion of the Cancun upgrade, which enhances Ethereum’s execution layer, and the Deneb upgrade, focusing on the consensus layer.

🤔 What Does EIP-4844 Bring to the Table?

One of the major highlights of the Dencun hard fork is the introduction of EIP-4844. This proposal revolutionizes how Ethereum rollups store data on the mainnet. Currently, layer-2 rollups aggregate and process transactions off-chain, submitting a summary proof of these transactions to the Ethereum blockchain. However, there’s only one type of storage available on Ethereum—the call data storage on the execution layer.

• Figment and Apex Group to List New ETPs on SIX Swiss Exchange
• BlockFi Settles with FTX and Alameda Research, Receives $874.5 Million to Repay Customers 👥
• 🐶 Shiba Inu Continues Its Bullish Run: Can it Reach $100 Billion Market Cap?

EIP-4844 changes the game by creating a new method for rollups to add cheaper data to blocks through the use of blob space. The traditional call data storage is expensive because all Ethereum nodes must process the data that lives on-chain indefinitely. With the advent of blob space, rollups can now send and attach data blobs to blocks. This data is not accessible to the Ethereum Virtual Machine and gets automatically deleted after a fixed period, estimated to be 18 days.

David Silverman explains, using vivid metaphors, “The idea with these blobs in EIP-4844 is to create this brand new section of storage that I can’t actually execute. I can’t touch them inside of the Ethereum EVM, but Ethereum, the protocol, guarantees its storage for a certain timeframe.” It’s like having a secret compartment in a car where you can hide stuff, but no one can access it after a specified time.

These blobs are temporary, significantly reducing storage costs for rollups while maintaining the same level of security guarantees. It’s a win-win situation!

⏰ Rollup Benefits: Not Instant Gratification

Proto-danksharding, as named by the researchers who proposed EIP-4844, has become a hot topic in the Ethereum community. It is expected to have a profound impact on the cost of rollup data storage in the future. Experts predict rollup costs will decrease by 10 to 50 times. However, we must be patient, my fellow Ethereum enthusiasts, as the true impact of these improvements will only be realized once the Dencun hard fork goes live.

Dencun is scheduled to hit the Ethereum mainnet on March 13, 📅 mark your calendars! However, after the hard fork, rollups will still need to update their contracts and go through their governance and upgrade procedures to point to the new blob space, delaying the immediate benefits.

Polygon’s VP of Product, David Silverman, revealed that Polygon has been working tirelessly to implement EIP-4844 as quickly as possible. Similar efforts can be observed among other major layer-2 solutions like Optimism, zkSync, and Arbitrum. They are eager to seize the opportunity presented by the Dencun hard fork as soon as they can.

💡 Ethereum’s Rollup-Centric Future

Dencun represents a crucial milestone in Ethereum’s pursuit of a layer-2-centric scaling approach. Ethereum is shifting its focus from the base chain to rollups, aiming to “slow down and ossify” its core components. This means that Ethereum L2s will drive innovation and provide a user-focused experience.

According to Silverman, “This is an Ethereum roadmap item that says, as opposed to the base chain being responsible for scaling, rollups are really where the future is. We’re going to make changes to make them cheaper and more attractive to users and be the standard-bearer for Ethereum.”

Rollup players in the Ethereum ecosystem have started coordinating with each other. They come together in what’s called “Roll Call,” a gathering of layer-2 solutions dedicated to discussions and producing improvement proposals. These changes are tailored for layer-2 solutions and will not be implemented on the mainnet Ethereum, introducing new forms of account abstraction, pre-compiles, or opcodes.

🎉 Let’s Celebrate… Kinda!

While Dencun might not bring immediate rollup cost reductions, there is still excitement in the air. The hard fork’s finalization is definitely worth cheering for! Silverman suggests that there might be some fun experiments and fanfare at launch. EthStaker, always up for a good show, will be hosting a lively stream. And if you thought that’s not enough, the developers at ETH Denver are planning to do ETH Blob Ordinals to clog up the blob space. Let the games begin!

As rollups gradually implement EIP-4844, unlocking the true power of proto-danksharding, we will begin to witness the full impact. Moreover, as more layer-2 solutions join the blob space, the cost reduction benefits will extend even further. It’s a continuous journey towards a more efficient and user-friendly Ethereum ecosystem.

📖 References: – Ethereum devs expect 10x lower rollup costs as Dencun upgrade hits testnets – Make Ethereum cheap again: ‘Blobs’ to be launched via Dencun upgrade on March 13 – Proto-danksharding explained: Unlocking the potential of EIP-4844 – Key elements to watch on the Ethereum network roadmap – Is measuring blockchain transactions per second (TPS) stupid in 2024? Big Questions

🤝 That’s all for now, Ethereum enthusiasts! Let’s ride the wave of rollup revolution together and share this article with your fellow crypto enthusiasts. Spread the knowledge and stay ahead of the curve! 🌊✨

We will continue to update Blocking; if you have any questions or suggestions, please contact us!