Ethereum's Blobs Are Slashing L2 Fees | Layer 2 Review
Quick Reads and Hot Links Covering the People and Projects Who Are Scaling Ethereum
Dear Frens,
The Dencun upgrade went live yesterday and is a major milestone for Ethereum, being the largest upgrade since the network switched to Proof-of-Stake (PoS). This upgrade has significantly changed how data is stored on Ethereum, making it more accessible and cheaper to record L2 transactions. This has led to a drastic fall in transaction fees on several Layer 2 networks. In this issue’s editorial, we dig deeper into the Dencun upgrade and the fresh momentum it brings to Ethereum’s Layer 2.
This momentum is not only limited to the Ethereum L2 ecosystem. The Bitcoin Layer 2 ecosystem is also taking huge strides with native Bitcoin-based applications seeing increased interest and usage. The emergence of projects like Stacks, Rootstock, and Liquid, which use Bitcoin as a foundational settlement layer while scaling functionality, has contributed to this growth. The Stacks network, a companion chain for smart contracts built on Bitcoin, witnessed its Total Value Locked (TVL) break previous all-time highs, indicating strong adoption and usage of the network.
These updates suggest that the Layer 2 ecosystems, both for Bitcoin and Ethereum, are experiencing significant growth and adoption, with new projects and solutions being developed to address the inherent limitations of the underlying networks. The increasing interest in native Bitcoin-based applications and the growth of Ethereum's Layer 2 projects indicate a positive trend for the overall ecosystem.
Read on to get the latest updates, and keep yourself abreast of major L2 stories and news.
Contributors: Warrior, Lucent1, anointingthompson1, jengajojo, Tonytad, Boluwatife, Kornekt, WinVerse
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🗞️ Ecosystem Updates
⛓️ Swell Plans Layer 2 'Restaked Rollup' Alongside Native Governance Token
🆕 Blobs Unleashed: Ethereum’s Dencun Upgrade Activates on Mainnet
🔀 Eclipse Labs Raises $50 Million in Series A Funding Ahead of Expected Q2 Mainnet
⚡ Taiko Raises $37M to Date From Top-tier VCs Ahead of Mainnet Launch
⭕ Frax Opens Bridge Access to Layer 2 Network Fraxtal; Plans Reward Snapshot Today
🔒 Base Says it Will Support EIP-4844 From 'Day 1' Following Dencun Upgrade
📈 Starknet Optimizes Code for Cost Savings Following Dencun Upgrade
🔮 Ethereum Layer 2 Chain Blast Releases Official Mainnet
🔥 Hot News
Grass Announces Revolutionary Layer 2 for Unbiased AI Training Data
Grass has announced its plans to become the world's first Layer 2 Data Rollup and is set to revolutionize the AI industry. Grass plans to do this by leveraging Solana's high throughput to process a staggering 1 million transactions per second, settling the platform securely on the Solana blockchain.
At the core of Grass' mission is addressing the consistent issue of bias in AI models, stemming from the lack of transparency surrounding the training data used. Grass' innovative solution is to establish an immutable ledger that allows developers to verify the origin of training data beyond a reasonable doubt, which, in turn, will ensure the absence of bias.
Grass' trailblazing Layer 2 solution promises to usher in a new era of unbiased AI models, fostering trust and transparency within the industry. Read more about this development in the thread below 👇🏽
🏛 Governance
💬 Proposals in Discussion
Arbitrum
https://forum.arbitrum.foundation/t/catalyze-gaming-ecosystem-growth-on-arbitrum/22368
https://forum.arbitrum.foundation/t/double-down-on-stip-successes-stip-bridge/22353
Optimism
https://gov.optimism.io/t/retro-funding-moving-from-broad-to-narrow-scoped-rounds/7759
https://gov.optimism.io/t/the-path-to-open-metagovernance/7728
https://gov.optimism.io/t/retro-citizen-rewards-retro-funding-3/7758
Polygon
https://forum.polygon.technology/t/account-abstraction-proposals-comparison/13595
https://forum.polygon.technology/t/upcoming-zkevm-mainnet-beta-elderberry-upgrade-fork-id-8/13641
Starknet
https://community.starknet.io/t/starknet-v0-13-1-pre-release-notes/113664
https://community.starknet.io/t/universal-sierra-compiler-usc/113702
Mantle
Ethereum's Blobs Are Slashing L2 Fees
Author: Kornekt
The Ethereum network has just undergone its biggest upgrade since the Merge. At exactly 13:55 UTC on March 13, 2024, the Dencun upgrade went live on the Ethereum mainnet. This upgrade, named from a combination of the Cancun and Deneb updates, accounts for nine Ethereum Improvement Proposals.
Set to redefine transaction processing capabilities, Dencun heralds a new era of scalability for Ethereum. One major takeaway of this upgrade is the introduction of data “blobs”, also known as Proto-Danksharding, which greatly reduces the burden of data storage costs for Layer 2 transactions. Let’s find out more!
What is Proto-Danksharding?
At the heart of the Dencun upgrade lies Proto-Danksharding, a paradigm shift in Ethereum's approach to data storage and transaction processing, particularly concerning Layer 2 solutions. Proto-Danksharding addresses the pressing issue of exorbitant data storage costs inherent in Layer 2 transactions on Ethereum's mainnet.
Traditionally, Layer 2 solutions, such as Rollups, have grappled with the necessity of permanently storing transaction data on Ethereum's mainnet, resulting in substantial storage expenses passed on to users in the form of transaction fees. Proto-Danksharding presents a groundbreaking solution by introducing temporary "data blobs" to the Ethereum network.
These data blobs serve as transient repositories for transaction data, enabling Layer 2 solutions to offload their storage requirements from Ethereum's mainnet to these ephemeral storage spaces. In stark contrast to conventional storage methods, where data remains on-chain indefinitely, data blobs have a finite lifespan of approximately one month before automatic deletion.
In addition to the data in the blobs, rollups post a “commitment” onchain which is used to verify the validity of the blob data. The data only need to be available long enough for anyone to check and verify their validity. As such, the data don't need to live perpetually on the network. This makes it okay to delete the data blobs after the specified period.
By transitioning transaction data to these temporary data blobs, Proto-Danksharding significantly mitigates the storage costs associated with Layer 2 transactions. This cost reduction translates to tangible benefits for users, in the form of lower transaction fees and enhanced accessibility to decentralized applications. Furthermore, Proto-Danksharding lays the groundwork for full Danksharding, which aims to augment Ethereum's scalability through additional data-sharding techniques.
Significance of Dencun on Ethereum and Layer 2
Dencun holds profound significance for both the Ethereum network and Layer 2 scalability. By introducing pioneering concepts like Proto-Danksharding, Dencun addresses critical challenges related to data storage costs and transaction fees, laying the groundwork for enhanced scalability and efficiency.
For Ethereum, Dencun signifies a pivotal step toward realizing long-term scalability objectives. Dencun amplifies the network's capacity to process higher transaction volumes by optimizing data storage and reducing transaction fees.
Proto-Danksharding's introduction by the Dencun upgrade also marks a watershed moment for the Layer 2 ecosystem on Ethereum's mainnet. A further highlight of some of its benefits on the Layer 2 ecosystem is as follows:
Introduction of Temporary Data Blobs: Unlike conventional storage methods, data blobs have a finite lifespan, ensuring efficient resource allocation and minimizing storage overheads. Proto-Danksharding introduces temporary "data blobs" tailored for storing transaction data from Layer 2 solutions, mitigating the need for permanent on-chain storage.
Reduced Storage Costs: Proto-Danksharding's utilization of temporary data blobs substantially lowers the storage costs associated with Layer 2 transactions, fostering a more cost-effective ecosystem for users.
Enhanced Accessibility: Lower transaction fees resulting from reduced storage costs make decentralized applications built on Layer 2 solutions more accessible and affordable, driving widespread adoption and innovation.
With diminished costs and heightened efficiency, Layer 2 platforms are poised to attract a burgeoning community of users and developers, fostering innovation and vitality within the ecosystem.
To Conclude
The potential long-term impact of the Dencun upgrade on the blockchain ecosystem is profound. By addressing scalability challenges and streamlining transaction costs, Dencun serves as a harbinger of future upgrades aimed at bolstering network efficiency and accessibility. This trajectory could catalyze the global adoption of blockchain technology, heralding a global era of decentralization, innovation, and inclusivity.
🔭 Project Watch
Arbitrum
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Optimism
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zkSync
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zkEVM
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