What is EIP-4844 in the Ethereum Network and What Benefits Can It Bring to Users?

EIP-4844, also known as proto-danksharding, represents a significant proposed upgrade to the Ethereum protocol. This update aims to address two critical challenges facing the network: reducing transaction fees and increasing transaction throughput. The mechanism through which it achieves these goals is by introducing a novel transaction type that accepts "blobs" of data.

Introduction

For years, Ethereum developers have been searching for solutions to accommodate the network's rapidly growing user base. As part of the comprehensive Ethereum Upgrade initiative, major improvements such as The Merge and rollups have been proposed and implemented. These changes have helped Ethereum increase transaction throughput and lower transaction costs to some extent.

However, fees remain prohibitively expensive for many users, and throughput has not reached the required levels, which continues to slow the pace of mass adoption. To address this persistent problem, Ethereum has introduced data sharding as its long-term solution. Since implementing data sharding is a lengthy and complex process, EIP-4844 is proposed as an interim solution that will prepare Ethereum for full danksharding, which is expected to achieve throughput of approximately 100,000 transactions per second (TPS) without compromising decentralization or security.

What is EIP-4844?

EIP stands for Ethereum Improvement Proposal, a protocol framework that allows developers to propose new features and solutions to the Ethereum protocol. The term EIP represents a standardized process for suggesting, discussing, and implementing changes to the Ethereum network. The name proto-danksharding derives from two Ethereum researchers: Proto Lambda and Dankrad Feist.

To understand EIP-4844, it is essential first to understand what sharding means. In its simplest form, sharding is a method of dividing databases into smaller segments that manage specific portions of data, thereby improving the efficiency and performance of these databases.

When applied to blockchain—and specifically to Ethereum—sharding takes on unique characteristics. Ethereum plans to implement a type of sharding called danksharding, which will help reduce transaction costs and increase throughput. Referred to as the "scalability killer," danksharding aims to increase Ethereum's TPS to approximately 100,000. For comparison, Ethereum's base layer processes around 15 TPS, while its layer-2 rollups have significantly improved throughput capabilities.

Some key differences between danksharding and previous Ethereum sharding proposals include the fact that danksharding will attempt to provide more space for data blobs rather than transactions. Another innovation of danksharding is the so-called unified fee market, where only one proposer selects transactions for all shards, instead of each shard having its own proposer. To make this unified fee market work and mitigate maximum extractable value (MEV) concerns, a method called proposer/builder separation will also be implemented.

EIP-4844 (proto-danksharding) is the step that will precede full danksharding and will increase TPS significantly. Most importantly, EIP-4844 will introduce a new transaction type that accepts data "blobs"—a crucial element enabling full danksharding. The EIP-4844 upgrade has been implemented as part of Ethereum's Dencun upgrade, marking an important milestone in the network's scaling roadmap.

How Does EIP-4844 Work?

Essentially, EIP-4844 introduces a new transaction type called blob transactions, which are similar to regular transactions but contain additional information known as binary large objects or "blobs." Understanding what EIP stands for (Ethereum Improvement Proposal) helps contextualize how this standardized proposal process enables such innovative features. Ethereum co-founder Ben Edgington summarizes EIP-4844 with a memorable alliterative phrase: "EIP-4844 attaches blobs to blocks." This concisely describes how blob transactions are linked with "blobs" attached to blocks, increasing the amount of data that blob-type blocks can handle.

This might seem confusing, as it appears similar to increasing block sizes—which contradicts Ethereum's position against arbitrarily large blocks that would require greater computational power and could lead to centralization. However, there are critical differences between blockspace and blobspace.

Blobs are large in size, but unlike blocks that are stored forever and visible to the Ethereum Virtual Machine (EVM), blobs are only available for a short time and are not visible to the EVM. Additionally, blobs reside in Ethereum's consensus layer rather than the execution layer that requires significant computational power. Most importantly, blobspace is significantly cheaper than blockspace.

Besides introducing blob transactions, EIP-4844 also implements execution layer logic, verification rules, multidimensional fee markets, and other system changes required for full danksharding in the future. It should be noted that while EIP-4844 implements most of the logic for full danksharding, it does not implement any actual sharding. Nevertheless, besides bringing Ethereum one step closer to achieving the cost and throughput levels needed for mass adoption, EIP-4844 offers substantial scalability and cost-saving benefits.

What Benefits Does EIP-4844 Bring to Users?

EIP-4844 is a protocol upgrade that is part of Ethereum's rollup-centric roadmap. The implementation of EIP-4844 through the Dencun upgrade has been successfully deployed, representing a major advancement for the network.

Users experience clear improvements following EIP-4844 implementation, primarily in the form of faster transactions and lower fees, particularly when using layer-2 scaling solutions. The EIP (Ethereum Improvement Proposal) framework ensures that such upgrades undergo rigorous testing and community review before deployment. Successful implementation of EIP-4844 has made Ethereum more competitive in the cryptocurrency space.

Some users may wonder what they should do if they want to access old blob data that has been deleted. As explained earlier, blobs reside in Ethereum's consensus layer, which aims to provide a highly secure real-time bulletin board for long-term storage by other protocols. Thus, even if blobs are deleted after their retention period, their data should still be accessible in long-term storage elsewhere through various archival services.

Conclusion

EIP-4844 represents a highly sophisticated upgrade to the Ethereum protocol that forms part of a broader roadmap and is interconnected with other system updates such as proposer/builder separation (PBS) and EIP-1559 blob fee adjustments. Understanding what EIP stands for—Ethereum Improvement Proposal—helps users appreciate the structured approach Ethereum takes toward protocol development. While understanding EIP-4844 better prepares average users for the changes it brings, it should be noted that most of these changes manifest as lower costs and faster transactions.

The Ethereum protocol is constantly evolving and being improved through the EIP process. EIP-4844 is one of the critical updates that has enhanced the network's capabilities. The successful implementation of EIP-4844 positions Ethereum as highly competitive as a global transaction network, paving the way for the eventual full danksharding implementation that will enable true mass-scale adoption of blockchain technology.

FAQ

Co to jest EIP?

EIP（Ethereum Improvement Proposal）to propozycja ulepszenia protokołu Ethereum. Dokumenty zawierające specyfikacje techniczne zmian w sieci oraz uzasadnienie dla społeczności. EIP jest procesem standaryzacji rozwoju Ethereum.