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Danksharding and Proto-Danksharding (EIP-4844) Explained

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Ihssan El Medkouri

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Ihssan El Medkouri

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Ihssan is a dedicated Content Editor at Cryptonews, where she excels in producing well-researched, insightful content. She has made notable contributions to the cryptocurrency industry, including...

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Last updated:

December 5, 2024

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Two significant advancements in Ethereum’s evolution are Danksharding and Proto-Danksharding (EIP-4844). Danksharding, named after Ethereum researcher Dankrad Feist, simplifies sharding with a streamlined single block proposer system, while Proto-Danksharding (EIP-4844) is an essential precursor that prepares the network for future scalability improvements.

In this article, we’ll break down these groundbreaking concepts, exploring how Danksharding refines the traditional sharding model and how Proto-Danksharding (EIP-4844) sets the stage for its implementation.

Key Takeaways

Danksharding: An advanced Ethereum sharding approach that simplifies the network’s transaction process by using a single block proposer system. It enhances scalability, efficiency, and transaction throughput.
Proto-Danksharding (EIP-4844): An intermediary step toward full Danksharding, introducing Binary Large Objects (blobs) to reduce transaction fees and improve Layer 2 scalability by allowing more cost-effective data storage.
Differences: Proto-Danksharding focuses on immediate scalability improvements with cheaper data storage, while Danksharding aims for a comprehensive overhaul of Ethereum’s transaction processing architecture.
Benefits: Danksharding improves transaction throughput, reduces processing complexity, and supports Layer 2 rollups, aligning with Ethereum’s long-term scalability goals.
Risks: Potential risks include complex implementation, data availability concerns, new security considerations, coordination challenges, and possible impacts on decentralization.

What Is Sharding?

In blockchain, sharding is made to improve the scalability of decentralized networks. Because it divides a blockchain into smaller and more manageable segments called shards, each shard can process a portion of the overall transaction load independently. This approach contrasts with traditional blockchain models where every node processes every transaction, leading to inefficiencies.

For instance, in a non-sharded blockchain with 1,000 nodes, each node validates and stores every transaction. Sharding divides this network into smaller shards, each handling a subset of transactions. This segmentation reduces the workload on individual nodes, leading to faster processing and improved network performance.

What Is Danksharding and How Does It Work?

Danksharding is an advanced version of sharding designed specifically for Ethereum. Named after Ethereum researcher Dankrad Feist, it improves upon traditional sharding by using a single block proposer system to manage the network’s transactions.

A block proposer is responsible for creating and submitting new blocks of transactions to the network. In this system, the proposer selects and arranges transactions into a block, which is then broadcast to the network for validation.

Unlike traditional sharding, which involves multiple proposers across different shards, Danksharding simplifies this by using a single proposer. This makes the transaction process more efficient and easier to manage.

Danksharding operates by combining a single block proposer system with a merged market fee approach. Block builders push requests to determine which data and transactions are included in each block slot.

The single proposer then selects the highest bidder from these submissions, and the chosen builder processes the block. This streamlined setup reduces complexity, boosts transaction throughput, and simplifies the network’s architecture.

What Is Proto-Danksharding (EIP-4844) and How Does It Work?

Proto-Danksharding, introduced through EIP-4844, serves as an intermediary step toward achieving full Danksharding. It introduces the concept of Binary Large Objects (blobs), which enable rollups to attach cheaper data to blocks. Blobs are large data bundles that help reduce Ethereum transaction fees by minimizing the amount of data processed by Ethereum nodes.

It also focuses on optimizing Layer 2 scalability by allowing rollups to post their data in a more cost-effective manner. This intermediate solution lays the groundwork for the full implementation of Danksharding by addressing immediate scalability concerns and setting the stage for future advancements.

Proto-Danksharding vs Danksharding

The distinction between Proto-Danksharding and Danksharding lies in their scope and implementation stages. Proto-Danksharding represents an early stage of the Danksharding vision, aimed at enhancing Layer 2 scalability through cheaper data storage.

In contrast, Danksharding encompasses a more comprehensive approach, including protocol upgrades to expand Ethereum’s transaction processing capabilities.

Proto-Danksharding works with data blobs to reduce transaction costs for Layer 2 rollups, while Danksharding’s goal is to overhaul Ethereum’s transaction architecture by increasing the number of data blobs and implementing additional protocol upgrades.

While Proto-Danksharding addresses immediate scalability needs, Danksharding represents a more ambitious and long-term solution.

Features	Proto-Danksharding	Danksharding
Purpose	Intermediate step for scalability improvements	Comprehensive upgrade for transaction processing
Data Handling	Introduces Binary Large Objects (blobs) to reduce transaction fees	Expands data blob capacity and integrates new sharding techniques
Transaction Cost	Lowers costs for Layer 2 rollups by making data storage cheaper	Further reduces costs with an enhanced data blob system
Implementation Stage	Initial phase, focuses on immediate scalability	Full implementation, overhauls transaction architecture
Scalability Goals	Improves Layer 2 scalability	Enhances overall Ethereum scalability and efficiency
Network Complexity	Simplifies data storage but not the entire network	Streamlines the entire sharding and transaction process

Ethereum 2.0 and Danksharding

Ethereum 2.0 incorporated different approaches to enhance scalability and efficiency. Danksharding is an important component of this upgrade, offering a refined approach to sharding that addresses many of the limitations of traditional sharding methods.

Key Features

Danksharding introduces several key features that distinguish it from previous sharding proposals:

Single Block Proposer System: Simplifies transaction processing by relying on a single proposer.
Merged Market Fee Approach: Integrates market fees into the sharding model for improved efficiency.
Increased Data Blob Capacity: Expands the number of data blobs from six in Proto-Danksharding to 64 in full Danksharding.
Enhanced Data Availability Sampling: Implements advanced data sampling techniques to ensure data integrity and availability.

Why Is It Important for Ethereum’s Future?

Danksharding is a big advancement in Ethereum’s scalability strategy. It improves transaction throughput and reduces processing complexity, allowing Ethereum to handle a larger volume of transactions with improved efficiency. This advancement is vital for supporting Ethereum’s growth and meeting the increasing demand for decentralized applications and services.

By introducing advanced features, it addresses important challenges and sets the stage for Ethereum’s future evolution.

Benefits of Danksharding in Ethereum

Danksharding introduces a range of benefits that enhance Ethereum’s scalability and efficiency:

Improved transaction throughput: By simplifying the sharding process, Danksharding allows Ethereum to handle a larger number of transactions simultaneously.
Reduced processing complexity: Using a single block proposer streamlines the transaction process, reducing the complexity typically associated with multiple proposers and builders.
Enhanced efficiency: Danksharding integrates market fees and increases the network’s capacity to handle data blobs, optimizing overall performance.
Support for Layer 2 rollups: It enables more cost-effective data storage solutions for Layer 2 rollups, improving scalability.
Future-proofing Ethereum: This design aligns with Ethereum’s long-term goals for scalability and sustained growth.

Potential Risks of Danksharding in Ethereum

While Danksharding brings numerous advantages, it also comes with potential risks:

Complex implementation: The advanced nature of sharding protocols could lead to challenges in successfully implementing Danksharding across the Ethereum network.
Data availability concerns: Ensuring that data remains available and intact across different shards may be difficult, potentially affecting reliability.
Security risks: Sharding introduces new security considerations, including the risk of new attack vectors targeting the shard structure.
Coordination issues: Managing shards and coordinating between proposers and block builders may lead to complications in network operations.
Impact on decentralization: The shift to Danksharding could potentially influence Ethereum’s decentralization goals by centralizing some aspects of block proposing.

The Latest In Danksharding and Future Projections

On March 13, 2024, the Dencun upgrade, comprising the Cancun and Deneb updates, was successfully implemented on the Ethereum mainnet. Initially scheduled for late 2023, the implementation faced delays due to deployment and consensus issues but ultimately launched as planned.

Key features of Dencun include the introduction of Proto-Danksharding (EIP-4844) which has established the groundwork for using data blobs to reduce transaction costs for Layer 2 rollups. As Ethereum refines its sharding strategy, Proto-Danksharding plays a big role in addressing immediate scalability concerns and preparing for future advancements.

The upgrade has notably reduced gas fees on Layer 2 solutions by up to 90%, with costs on platforms like Arbitrum dropping from about $2.02 to $0.40 per transaction. It also improved throughput by enhancing data storage capabilities and positively impacted Ethereum’s market performance, contributing to a significant increase in ETH’s value post-launch.

The Ethereum community remains focused on refining the proto-danksharding proposal, tackling technical challenges, and implementing necessary updates. This effort reflects Ethereum’s dedication to enhancing scalability and efficiency through innovative solutions.

Looking ahead, Proto-Danksharding is expected to evolve into full Danksharding, incorporating additional features and improvements. We might see an expansion of the number of data blobs, enhancements of data availability sampling techniques, and implementations of further protocol upgrades. These advancements will contribute to Ethereum’s long-term scalability goals and support the growth of decentralized applications and services.

The transition from Proto-Danksharding to full Danksharding will involve ongoing refinement and testing to ensure successful implementation. As Ethereum progresses toward its scalability goals, Proto-Danksharding will remain a key component of the overall strategy.

Final Thoughts on Danksharding

This new step represents a transformative advancement in Ethereum’s scalability strategy, offering a refined approach to sharding that addresses key challenges and enhances transaction throughput.

By integrating a single-block proposer system, expanding data blob capacity, and refining data availability sampling techniques, it positions Ethereum for future growth and efficiency.

To dive deeper into the Ethereum Dencun upgrade and other exciting developments, we recommend watching our exclusive interview with Andreas Brekken, the founder of SideShift.ai, to learn more about the future of Ethereum firsthand.

FAQs

Is there a chance sharding will affect Ethereum’s decentralization

Ethereum is designed to balance scalability with decentralization and sharding introduces new architectural elements. The implementation of sharding features will be carefully managed to ensure that Ethereum’s decentralization goals are upheld.

What is the relationship between sharding and Ethereum’s PoS transition?

Sharding enhances Ethereum’s scalability, complementing the Proof of Stake (PoS) transition by improving transaction throughput and efficiency, making the network more effective under PoS.

What is the Beacon Chain in Ethereum 2.0?

The Beacon Chain is Ethereum’s PoS blockchain, coordinating validators, managing the network’s consensus, and laying the groundwork for Ethereum 2.0’s scalability and security upgrades.

What are blob-carrying transactions?

Blob-carrying transactions involve attaching large data bundles (blobs) to Ethereum blocks, reducing transaction costs, and optimizing data storage, particularly for Layer 2 rollups.