A new way to improve Ethereum’s scalability called ‘proto-danksharding’ has been introduced. The goal is to drastically reduce transaction fees for users on additional “layer-2” networks. Recently, Ethereum developers announced the upcoming Dencun upgrade, which includes the much-anticipated proto-danksharding feature. Marking a milestone in Ethereum’s evolution, preparing to accommodate >100,000 transactions per second.
What does Sharding mean?
Sharding is like breaking a big task into smaller, manageable pieces. In the world of blockchain, it means dividing the entire system into smaller parts called shards. Each shard handles its own transactions, making the system faster and more efficient.
Imagine if a big job like processing a $100,000 transaction could be split into ten $10,000 transactions, each handled separately. That’s what sharding does, it reduces congestion and makes things run smoother.
Sharding vs DankSharding
Originally, developers planned to scale Ethereum using sharding, which would split the main chain into 64 separate chains, or shards. Each shard would handle transactions independently. However, with the rise of rollups which is a different scaling solution that processes transactions off the main chain, the sharding plan was abandoned.
Rollups proved to be simpler, more decentralized, and more secure. DankSharding is an upgrade to sharding, designed to work alongside rollups. One important thing about DankSharding is it brings in temporary data blobs. These blobs are like little packages of information that help rollups handle more transactions without slowing down. So while sharding splits things up, DankSharding takes it a step further, making the system even more streamlined and powerful.
Meaning of DankSharding?
DankSharding helps Ethereum function more effectively by organizing its tasks more efficiently. Instead of having one big job to do all at once, it splits the work into smaller parts, called shards. But unlike regular sharding, DankSharding adds something new called temporary data blobs to make transactions smoother. These blobs are like little packages of information. The information that helps Ethereum handle lots of transactions without slowing down.
Working of DankSharding?
DankSharding’s main goal is to make transactions faster without clogging up the network. Block builders are important because they pick which transactions get put into blocks, making sure everything is fair and clear for everyone. By leveraging merged market fee concepts and curtailing unfair controls such as Maximum Extractable Value (MEV), DankSharding mitigates transaction manipulation risks. Through the integration of temporary data blobs, DankSharding optimizes transaction storage, reducing reliance on on-chain data storage and enhancing network scalability.
What is Proto-DankSharding?
Proto-Danksharding, also known as EIP-4844, is a proposal aimed at making transactions cheaper on Ethereum’s rollups. Currently, these rollups face limitations in reducing transaction costs because they store transaction data in CALLDATA, which is costly and remains on the chain indefinitely.
Proto-Danksharding introduces a solution by utilizing “blobs,” which are like large bundles of data attached to blocks. These blobs contain transaction information but are not accessible to the Ethereum Virtual Machine (EVM). Moreover, they are automatically deleted after a set time period, typically 1-3 months. This innovation enables rollups to transmit data more affordably. Leading to reduced transaction fees for end users.
What are Blobs and why do they make Rollups cheap?
Blobs are like big packages that hold important transaction data in Ethereum’s network. Picture them as large, neatly wrapped bundles. Within each blob, there are two main parts: the body and the header. The body contains the crucial transaction details, while the header includes less critical information like the signature of the proposer.
In proto-danksharding, every transaction is paired with a blob, aiming to cut down transaction costs. This is crucial for scalability. Imagine each slot in proto-danksharding as having a specific space limit, like fitting pieces into a puzzle.
Now, the Ethereum Virtual Machine (EVM) can only access the essential data inside these blobs, not the blobs themselves. This setup helps keep things organized and efficient, especially considering transactions in danksharding operate differently from the usual mempool.
Now, let’s talk about why blobs make rollups cheaper. Rollups boost Ethereum’s capacity by processing transactions off-chain before broadcasting outcomes to the network. Each rollup consists of two key components: data and execution check.
The data is essentially the entire sequence of transactions that the rollup processes to create the final outcome posted to Ethereum. The execution check involves re-running these transactions by some trusted actor (a “prover”), ensuring everything is accurate. For this system to work, transaction data must be available for a while so anyone can verify it.
Deleting blob data and How is blob data verified?
It’s totally okay to delete the blob data because keeping it forever would make the nodes storing it get too big and require a lot of hardware. Instead, the data gets pruned, or removed, from the nodes every 1-3 months. And before it gets deleted, the consensus clients make sure everyone has seen the data and had enough time to check it. This means that if someone wants to make sure the data is correct, they have a chance to do so before it’s gone.
And about how blob data is verified. When rollups post their transactions in data blobs, they also make a “commitment” to the data. Think of this like a digital fingerprint. This is done using a math trick called a polynomial function. Let’s say we have a basic function, such as f(x) = 2x-1.
We can easily compute its values for specific x-values, like 1, 2, and 3, resulting in 1, 3, and 5, respectively. Now, when a prover is tasked with verifying data integrity, they apply this identical function to the dataset and assess it at the same designated points. This allows for comparison, enabling the detection of any alterations to the original dataset. If the original data changes, the numbers won’t match, and the prover will know something’s fishy.
Bottom line
While Full Danksharding may still be a ‘few years away’ according to Ethereum, the advent of Proto-Danksharding appears promising and relatively imminent. As of February 2023, significant strides have been made, with the KZG ceremony attracting a sizable number of contributors and the EIP for Proto-Danksharding maturing. Specifications are agreed upon, and client prototypes are undergoing testing for eventual production readiness.
It’s worth noting that neither DankSharding nor Proto-DankSharding adheres to the traditional sharding model. Instead, they leverage distributed data sampling across blobs. Simplifying Ethereum’s scalability approach. This model of “data-sharding” provides a simpler way to improve how Ethereum handles transactions and helps the Ethereum community grow.
Implementing DankSharding could also help Ethereum’s price rise by making it better at handling transactions. When Ethereum can handle more transactions efficiently, more people might want to use it. This increased interest could lead to more investment, inturn, pushing its price higher. Additionally, if transaction costs go down it could attract even more users and developers, boosting Ethereum’s overall value.
