Marco Manoppo’s Post

As L2s become the preferred method of transacting on Ethereum, I hope we’ll see more institutional projects come online to leverage this dramatic drop in L2 gas fees. The implementation of true ZK-Rollups on L2s such as ZKSync I hope can one day become the defacto method for Rollups. This would be a tremendous technical and mathematical achievement. Not just for blockchain tech, but also for the science of zero knowledge proofs at scale

Nowadays, everyone is talking about the Ethereum Dencun Upgrade. Dencun is considered the biggest Ethereum upgrade since the Merge in September 2022. Let's delve into each component technically. 1. What is Ethereum Dencun Upgrade? This upgrade introduces EIP-4844 (proto-danksharding), enabling larger data storage (blobs) for transactions, with a greater focus on scalability and cost reduction for transactions on Layer 2 networks built on Ethereum. This has resulted in lowered fees for using popular Layer 2 solutions like Arbitrum, Optimism, and Starknet. 2. What is (proto-danksharding)? Proto-danksharding introduces a new approach to handle data associated with transactions - separating data storage. In traditional Ethereum transactions, all data is stored directly on the blockchain, leading to high fees due to limited space. However, Dencun introduces a new concept called "blobs." These are essentially chunks of transaction data that are separated from the core block. Here, EIP-4844 introduces a new transaction type known as blob-carrying transactions. 3. What are "blobs" and "blob-carrying transactions"? Think of blobs as large chunks of data associated with a transaction. They can hold various information, including complex instructions, media files, or additional transaction details. Basically, blobs are not stored directly on the Ethereum blockchain. Instead, they reside in a separate, temporary storage space called "blobstorage." This space is designed to be cheaper and more scalable than the main blockchain. Additionally, blobs are available for a limited time, typically around 18 months. After this period, they are pruned (removed) from the blobstorage to maintain efficiency. Blob-carrying transactions are regular Ethereum transactions with an added twist. They include: A. Minimal data: Essential transaction information like sender, receiver, and gas fees. B. Blob reference: A pointer or link indicating the location of the corresponding blob stored in the blobstorage. 3. when we have IPFS then what is the need for blobstorage? IPFS is designed as a distributed file storage system, aiming for a decentralized and permanent storage solution where anyone can contribute storage space and access information. On the other hand, Blobstorage focuses on temporary, cost-effective storage specifically for Ethereum Layer 2 transactions. Blobstorage directly addresses the scalability challenges faced by the Ethereum network, particularly for Layer 2 transactions. IPFS, while offering a broader storage solution, does not directly tackle this specific issue. Think of it this way: - IPFS: Like a public library where anyone can contribute books (data) and access them permanently. - Blobstorage: A temporary storage facility specifically designed for handling large packages (transaction data) associated with a specific service (Layer 2 solutions). #Ethereum #DencunUpgrade #BlockchainRevolution

⚖️ How Starknet Scales Ethereum ⚖️ Starknet is a zero-knowledge (zk-rollup) layer-2 scaling solution that moves computation and state into off-chain networks while storing transaction data on the Ethereum layer-1 network. — Instead of posting all transaction data on-chain, Starknet only needs to periodically provide valid bundled-up transaction batches that are executed using off-chain computation. — These bundles are then "rolled up" into one summary of the state changes, which are verified by using a validity proof that proves the correctness of the changes using a zero-knowledge proof. — This proof demonstrates with mathematical certainty that the state changes proposed by Starknet are correct and so is the result of the execution of the given batch of transactions. — Starknet relies on Ethereum for data availability, settlement, and censorship resistance, and its state is maintained by a smart contract deployed on the Ethereum network. ⚖️ Scalability issues with Ethereum ⚖️ 1. Block Gas Limit: Ethereum's block gas limit restricts the number of transactions that can be processed in each block, leading to congestion and delays. 2. Block Time: Ethereum's block time of around 15 seconds slows down transaction processing and confirmation. 3. Transaction Capacity: Ethereum's current transaction capacity is limited to around 10-15 transactions per second, far below the requirements of widespread adoption. 4. Smart Contract Complexity: Complex smart contracts can consume excessive gas, slowing down the network and increasing costs. 5. Network Congestion: As the number of users and transactions grows, Ethereum's network becomes congested, leading to increased gas fees and slower processing times. 6. Data Storage: Ethereum's blockchain stores all data on-chain, leading to increased storage requirements and slower data retrieval. 7. Scalability Trilemma: Ethereum faces the scalability trilemma, where improvements in decentralization, security, and scalability are difficult to achieve simultaneously. These scalability issues result in: — High gas fees — Slow transaction processing — Limited adoption — Increased centralization ⚖️ Starknet 's solution to Ethereum's scalability issues ⚖️ 1. Validity-Rollups (ZK-Rollups): Starknet utilizes Validity-Rollups, a type of zero-knowledge rollup, to batch multiple transactions into a single proof, reducing the load on the Ethereum blockchain. 2. Off-chain computation: Starknet performs computation off-chain, reducing the computational burden on the Ethereum network, and only posts transaction data on-chain, minimizing gas costs. 3. Zero-Knowledge Proofs (ZKPs): Starknet employs ZKPs to prove the validity of transactions, ensuring trustlessness and security without revealing sensitive... 😁 Exceeded character limit — Read the full post here 👇 https://lnkd.in/d9GyV6-R

🚀 Dencun Unleashed! 🚀 The much-anticipated #Dencun upgrade (incl. #EIP4844) has officially rolled out, and it's set to revolutionize the #Ethereum ecosystem. Wanna know what all the fuss is about? Here's my summary 👇 📈 The Landscape Pre-Dencun: A Surge in L2 Solutions 📈 Over the last couple of years, we've witnessed a significant uptick in the adoption of Layer 2 (L2) solutions. High gas fees on Ethereum's Layer 1 (L1) have driven users towards alternatives like #Polygon, #Arbitrum, #Optimism. 💸 The Problem: Rising Gas Costs 💸 This high demand on L2 leads to increased resource demand in two areas: - L2: increased gas prices on L2, for example for an average #ERC4337 user operation in Suku Wallet we used to pay < $0.01 at the beginning of last year as compared to ~$0.03 now. - L1: regardless of the rollup mechanism (zk or optimistic), L2 transactions need finalization and therefore require resources and block space on Layer 1. The lack of L1 settlement space is also known as “data availability problem” and users can feel its impact on most L2s today. Gas prices have been going up, users are paying $0.38 for a DEX swap on #Optimism. Clearly, the current L2 landscape is unprepared for increased demand. If growth continues at this rate, gas prices will inevitably rise to levels that many users can't afford. In addition, given the high settlement costs, there comes a point when using Layer 2 networks no longer makes sense. Users might prefer to send a transaction to Layer 1, as the price could be only marginally higher. 🌈 The solution 🌈 EIP4844 addresses this issue by introducing "blob-storage". Rather than storing L2 proofs alongside other transactions in a block, additional storage will be available in "blobs". This reduces transaction costs for L2 users and increases throughput on Ethereum L1. For Suku Wallet users, this means lower L2 fees 💰 . I believe this change will guide the Ethereum ecosystem towards a more sustainable future. What are your thoughts on how #EIP4844 will reshape the Ethereum landscape? I was able to share my perspective with Blockworks, check out the article here: https://lnkd.in/ej9xfrWW #Blockchain #Cryptocurrency #DeFi #Layer2

🚀 Introducing EIP-4844 "Proto-Danksharding" 🚀 If you used any major L2 in the recent days you may saw that the gas fees decreased significally. But why? Last week the biggest Ethereum upgrade since The Merge came into the effect. It introduces a concept known as "blobs", aiming to reduce transaction fees and improve the throughput of data between the Ethereum mainnet (Layer 1 or L1) and various L2 solutions. Here is an easy and quick overview of what the blobs are: ➤ Ethereum Without Blobs Communication between L1 and L2 solutions relied heavily on the existing Ethereum blockchain's data availability and transaction processing mechanisms. L2 solutions, like Optimistic Rollups and zk-Rollups, bundle or aggregate multiple transactions off-chain and then submit a summary or proof of these transactions to the L1 for finality and security purposes. This process is gas-intensive and expensive because it utilizes the base layer's limited block space for data storage and transaction execution. ➤ Ethereum With Blobs: After EIP-4844 EIP-4844 introduces "blobs" of data to the Ethereum protocol, which are essentially large chunks of data that can be included in Ethereum blocks without being executed. This means that blobs allow for a significant amount of data to be included in a block without affecting the gas cost in the same way as executing transactions or storing data in Ethereum's state. Here's how blobs change the L1 and L2 interaction: 💫 Increased Data Throughput: Blobs provide a dedicated space for L2s to post batched transaction data on L1 without executing it. This increases the amount of data that can be transferred between layers efficiently. 💫 Reduced Costs: Since blobs are cheaper to include in a block compared to executing transactions or storing data in the state, L2 solutions can post more data to L1 at a lower cost. This reduction in cost is expected to be passed on to users in the form of lower transaction fees on L2. 💫 Improved Scalability: By allowing more data to be posted to L1 in a cost-effective manner, EIP-4844 improves the scalability of L2 solutions. This means more transactions can be processed off-chain and settled on-chain without congesting the network or inflating gas fees. The Bottom Line: EIP-4844 represents a pivotal shift towards a more scalable, efficient, and cost-effective Ethereum ecosystem. By bridging the gap between L1 and L2 with blobs, we're looking at a future where transaction fees are lower, and Ethereum's scalability is no longer a bottleneck.

On March 13, the Dencun hard fork activated, enabling one of the long-awaited features of #Ethereum: proto-danksharding (aka EIP-4844, aka blobs). Initially, the fork reduced the transaction fees of rollups by a factor of over 100, as blobs were nearly free. In the last day, we finally saw blobs spike up in volume and the fee market activate as the blobscriptions protocol started to use them. Blobs are not free, but they remain much cheaper than calldata. This milestone represents a key transition in Ethereum's long-term roadmap: blobs are the moment where Ethereum scaling ceased to be a "zero-to-one" problem, and became a "one-to-N" problem. From here, important scaling work, both in increasing blob count and in improving rollups' ability to make the best use of each blob, will continue to take place, but it will be more incremental. The scaling-related changes to the fundamental paradigm of how Ethereum as an ecosystem operates are increasingly already behind us. Additionally, emphasis is already slowly shifting, and will continue to slowly shift, from L1 problems such as PoS and scaling, to problems closer to the application layer. The key question that this post will cover is: where does Ethereum go from here? Conclusions: - Ethereum is in the process of a decisive shift from a "very rapid L1 progress" era to an era where L1 progress will be still very significant, but somewhat more mellow, and less disruptive to applications. - We still need to finish scaling. This work will be more in-the-background, but it remains important. - Application developers are no longer building prototypes; we are building tools for many millions of people to use. Across the ecosystem, we need to fully readjust mindsets accordingly. - Ethereum has upgraded from being "just" a financial ecosystem into a much more thorough independent decentralized tech stack. Across the ecosystem, we need to fully readjust mindsets accordingly to this too. #ETHEREUM

Vitalik Buterin just released a post: https://lnkd.in/d7xfDCEW It’s about the possible future of the Etherum protocol. Here’s an AI summary: Ethereum faces a critical challenge: the blockchain’s inherent tendency to accumulate data and complexity over time. This growth manifests in two primary areas: 1. Historical Data: Every past transaction and account must be stored indefinitely by all nodes, leading to increasing storage demands and longer synchronization times without improving the network’s capacity. 2. Protocol Complexity: New features are frequently added, but outdated ones are seldom removed, causing the protocol to become increasingly intricate and harder to maintain. “The Purge” is an initiative aimed at addressing these issues by reducing data load and simplifying the protocol, all while preserving the blockchain’s core attribute of permanence. Users should remain confident that their assets and contracts are secure and accessible, even after extended periods of inactivity. Key Objectives: - Reduce Storage Requirements: Minimize the need for nodes to store all historical data permanently, possibly by having nodes store only portions of the data, akin to torrent networks. - Simplify the Protocol: Eliminate unnecessary features to make the protocol more efficient and easier to maintain. Main Components: 1. History Expiry: Implement a system where nodes store historical data only for a limited time (e.g., one year as proposed in EIP-4444). Older data can be stored and retrieved via distributed networks, reducing individual storage burdens without sacrificing data availability. 2. State Expiry: Manage the growth of state data (like account balances and smart contracts) by introducing mechanisms to archive or remove unused data. This could involve systems where data not accessed for a certain period becomes inactive but can be reactivated when needed. 3. Feature Cleanup: Remove outdated or seldom-used protocol features to reduce complexity and potential security risks. Examples include deprecating obsolete transaction types and simplifying how events and logs are handled. Impact and Outlook: Implementing “The Purge” requires careful coordination within the Ethereum community, balancing the reduction of complexity with the need for backward compatibility. These efforts aim to make Ethereum more sustainable and accessible, encouraging more users to run nodes, which enhances network security and decentralization. Simplifying the protocol also lowers barriers for developers, fostering innovation. Conclusion: “The Purge” represents a significant step in Ethereum’s evolution, focusing on efficiency and scalability without compromising the foundational principles of decentralization and permanence. By addressing data load and protocol complexity, Ethereum positions itself for long-term stability and continued growth as a leading platform for decentralized applications and transactions.

Ethereum's Dencun upgrade: A leap forward in scalability with off-chain data storage Ethereum, standing tall as the world's second-largest blockchain platform, tackles the challenges related to scalability, security, and efficiency. A significant leap in this journey is the introduction of the Dencun upgrade, a game-changer that brings innovative features to boost the network's performance. The biggest part of Dencun is introduction of EIP-4844 called Proto-Danksharding, which introduces blobs to Ethereum. 📦 Blobs: The new data containers Blobs are containers designed to hold substantial amounts of data. Each blob has the capacity to store approximately 125 kilobytes of information, serving as off-chain storage units. This shift alleviates the load on the Ethereum main chain, eliminating the need to directly manage large datasets. 🔄 The shift to off-chain data storage In the traditional setup, Ethereum housed all data on-chain, leading to network congestion and skyrocketing transaction fees. Dencun disrupts this model by enabling off-chain storage of data within blobs. This strategic shift enhances the efficiency of the Ethereum network and expedites transaction processing, offering a smoother user experience. 🔒 Ensuring On-Chain Verifiability with KZG commitments The integrity and authenticity of blob data are critical. Dencun ensures this through advanced cryptographic techniques. While the actual data is stored off-chain, the blockchain verifies its correctness, ensuring the off-chain data remains tamper-proof and reliable. To uphold verifiability, Ethereum leverages Kate-Zaverucha-Goldberg (KZG) cryptographic commitments. These commitments empower the network to verify the accuracy of off-chain data efficiently, without the need to store the entire dataset on-chain. Acting as references, KZG commitments form a secure bridge between the off-chain and on-chain realms. 📉 Calldata reduction Dencun significantly curtails the reliance on calldata—the data accompanying each transaction—by shifting data to off-chain blobs. Consequently, the Ethereum main chain processes less information, resulting in reduced network congestion and lower transaction fees. The ripple effect on layer 2 rollups Layer 2 solutions, such as Base, Polygon, and Arbitrum, have found a silver lining with Dencun. By offloading a significant chunk of transaction data to off-chain blobs, these rollups have achieved a significant reduction in transaction fees. #digitalassets #ethereum #crypto