Back to blog
February 13, 2024 · 6 min · SQD Team

What is Danksharding? Diving into EIP-4844 and Ethereum Data

Ethereum Danksharding EIP-4844
What is Danksharding? Diving into EIP-4844 and Ethereum Data

Ethereum faces well-documented scaling challenges, with users paying substantial gas fees during peak activity. Layer-2 solutions have emerged to address congestion, yet as these networks proliferate, questions about data handling and transaction integrity persist. Danksharding represents a promising roadmap item designed to enable Ethereum to scale to over 100,000 transactions per second while maintaining low L2 fees.

Understanding Sharding

Sharding divides networks into smaller segments called shards that independently process transactions and manage data. This technique enables parallel transaction processing to increase throughput. Some blockchains like Elrond and NEAR already implement sharding variants.

Ethereum initially planned traditional sharding but shifted toward a rollup-centric approach with data-layer sharding instead.

Data Availability

Data availability ensures network data remains accessible and retrievable for all participants. Rollups currently compress transaction data and post it to Ethereum mainnet using Calldata — the cheapest storage method available. However, rollup operators pay approximately 90% of their fees for Ethereum data storage, driving interest in alternative solutions like Celestia and Avail.

Danksharding Components

Danksharding introduces two primary mechanisms:

Data Availability Sampling (DAS): Enables nodes to verify data availability through mathematical sampling rather than downloading complete blocks, reducing node workload significantly.

Proposer-Builder Separation: Separates transaction bundling from block proposal duties. Block builders construct blocks while proposers select the most profitable option without viewing contents, reducing MEV-related front-running.

EIP-4844: Proto-Danksharding

EIP-4844, proposed by Ethereum researcher Protolambda, represents the first major milestone toward full Danksharding implementation.

Blob-Carrying Transactions

“Blob” (binary large object) transactions introduce new data storage. Each blob holds up to 125kb and includes cryptographic commitments enabling verification without revealing complete contents. Blob data persists approximately three months — significantly shorter than permanent mainnet storage.

Blobs operate outside traditional gas models with separate fee mechanics, benefiting rollup operators with stable pricing during network congestion.

Benefits

  • Reduced costs: Anticipated 100x fee reduction on rollups
  • Scaling foundation: Enables full Danksharding implementation
  • Improved experience: Accommodates more transactions at lower costs

EIP-4844 arrived with the Cancun upgrade, establishing the groundwork for Ethereum’s rollup-centric scalability path.

Want to learn more about SQD?