When is EIP-4844, and why is it considered the biggest game … – FXStreet


Ekta Mourya Ekta Mourya

EIP-4844, Ethereum blockchain’s proposed upgrade, is lined up for Q4 2023. Its primary feature is called proto-danksharding. Proto-danksharding has two key objectives for the Ethereum blockchain:
The Ethereum Improvement Proposal (EIP) aims to achieve these objectives through the introduction of “blobs” of data, a new transaction type on the ETH blockchain. 
Also read: Ethereum buying spree likely in August as DAI whale holdings climb higher
EIPs specify new features or processes that improve the Ethereum blockchain. The proposal defines technical specifications, and they are considered key for the community of developers to propose, debate and adapt changes to continuously improve the ETH blockchain.
EIPs are a vehicle of governance on the Ethereum blockchain. While anyone is free to propose an improvement, stakeholders in the community determine if it should be adopted or included in a network upgrade.
The Ethereum blockchain has faced a key challenge since its launch – the spike in transaction fees on the network. To address this issue, several solutions and EIPs have been proposed. EIP-4844 or proto-danksharding is set to address this as one of its key objectives. 
EIP-4844, better known as proto-danksharding, is named after Ethereum researchers Proto Lambda and Dankrad Feist.
Sharding is another name for partitioning a database into smaller data segments. In simple terms, it's like cutting a pizza into slices. A pizza can be consumed more effectively and with higher efficiency when cut into slices, and the same can be applied to specific data segments.
There are several unique features in addition to segmenting data. While the Ethereum base layer processes around 15 TPS and layer 2 rollups take the number to 100, danksharding is predicted to eventually increase Ethereum’s throughput to 100,000.
The Ethereum blockchain is headed in the direction of a full “danksharding,” and EIP-4844 is the first step. It would increase the throughput from 100 to 1,000. While it is scheduled to occur in Q4 2023, delays are anticipated.
EIP-4844 introduces blob-carrying transactions. These are similar to regular transactions with added pieces of information. Ethereum contributor Ben Edgington has summarized EIP-4844 as an improvement that “bolts blobs onto blocks.”
In the first look it may be perceived as an increase in blocksize, which is counterintuitive to increasing efficiency. However, blobspace is different from blockspace, and blobs are not visible to the Ethereum Virtual Machine. They do not occupy space on the base layer of the blockchain. Blobs are visible for a short period of time, and the space occupied by them is relatively cheaper when compared to blocks. 
The scaling and cost-saving benefits of sharding comes from EIP-4844, making it a game changer improvement for the Ethereum blockchain.
The Ethereum blockchain’s future roadmap is centered on “rollups,” and EIP-4844 is a part of the same. Users will experience the difference post implementation of EIP-4844, as ETH transactions become faster and fees become relatively cheaper. This is likely to boost the competitiveness of the Ethereum blockchain.
Ethereum is a decentralized open-source blockchain with smart contracts functionality. Serving as the basal network for the Ether (ETH) cryptocurrency, it is the second largest crypto and largest altcoin by market capitalization. The Ethereum network is tailored for scalability, programmability, security, and decentralization, attributes that make it popular among developers.
Ethereum uses decentralized blockchain technology, where developers can build and deploy applications that are independent of the central authority. To make this easier, the network has a programming language in place, which helps users create self-executing smart contracts. A smart contract is basically a code that can be verified and allows inter-user transactions.
Staking is a process where investors grow their portfolios by locking their assets for a specified duration instead of selling them. It is used by most blockchains, especially the ones that employ Proof-of-Stake (PoS) mechanism, with users earning rewards as an incentive for committing their tokens. For most long-term cryptocurrency holders, staking is a strategy to make passive income from your assets, putting them to work in exchange for reward generation.
Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism in an event christened “The Merge.” The transformation came as the network wanted to achieve more security, cut down on energy consumption by 99.95%, and execute new scaling solutions with a possible threshold of 100,000 transactions per second. With PoS, there are less entry barriers for miners considering the reduced energy demands.
Like this article? Help us with some feedback by answering this survey:

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Join Telegram
Join Telegram
Bitcoin price shows a slow sideways movement around the $26,000 level after an outburst of volatility on August 17. This sideways movement could face a further decline should history rhyme. 
Worldcoin, a crypto project by ChatGPT founder Sam Altman, has garnered growing scrutiny from regulators and watchdogs worldwide. The project has earned a reputation for possible violations of national data protection laws, because of its eye-ball scanning orbs that enroll users.
Coinbase exchange's Layer 2 chain, BASE witnessed another rugpull on Magnet Finance, a lending protocol hosted on the blockchain. The users of the protocol lost $6.4 million to the deployer, a scammer associated with exploits of Kokomo Finance and Solfire.
A vast majority of Cardano (ADA), Polygon (MATIC) and Shiba Inu (SHIB) holders are sitting on unrealized losses, according to data from crypto intelligence platform IntoTheBlock.
Bitcoin price shows a slow sideways movement around the $26,000 level after an outburst of volatility on August 17. This sideways movement could face a further decline should history rhyme. 
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and omissions may occur. Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, clients or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.


Leave a Reply

Your email address will not be published. Required fields are marked *