The Dencun upgrade is expected to go live on March 14, 2024. The launch of EIP-4844 will follow soon, tentatively scheduled for May 1, 2024. At launch, EIP-4844 will provide dedicated means to greatly reduce transaction costs. No estimate for this has been given, but rough numbers say the drop could be between 2x and 5x.
What makes EIP-4844 ideal for reducing transaction costs is the introduction of Blobspace. Simply put, Blobspace facilitates storing and managing large objects for 18 days. This is in contrast to the way Calldata works. Large objects managed by Blobspace can be files, data, or documents. It further aims to improve performance and management systems.
There are two core aspects of a transaction that determine costs. These are the steps involved in executing a transaction and making its data available. It is mainly the second aspect that drives up costs, making transactions more expensive than they should be. Call data forms part of 80% of the transaction costs.
The launch of the EIP-4844 follows the launch of the Feijoa upgrade, scheduled for April. Polygon EVM requires a 10-day timelock standard, so there would be a gap between the two launches.
Its launch will not impact Polygon CDK, as transaction fees are already beneficial for projects built with it. However, when EIP-4844 goes live later this year, prices will drop further, benefiting users.
Simply put, EIP-4844 will facilitate the mainnet launch of the Dencun upgrade, reducing transaction fees by 2x-5x. It will serve as an alternative to calling data that otherwise drives up prices. EIP-4844 uses Blobspace to store and manage large objects such as BLOBs: binary large objects.
The announcement has done quite well for MATIC, the native token of the Polygon ecosystem. MATIC was last seen exchanging hands at $1.16, up 4.33% in the last 24 hours. It further reflects an increase of 12.90% in the last 7 days and 38.88% in the last 30 days. The development comes days after Polygon announced that Astar EVM is connecting to AggLayer and leveraging unified liquidity with Polygon zkEVM.
The idea is to unlock access to cross-chain transactions and interoperability.
Astar zkEVM connecting to Polygon CDM marks the beginning of the era of aggregation. AggLayer will now enable cross-chain transactions and interoperability.
As for EIP-4844, a 2x-5x reduction in transaction fees will significantly impact users. For example, the $1 transaction fee will be reduced to $0.60 – $0.36 once EIP-4844 goes live. Needless to say, this is only an estimated reduction, with actual figures to be made public once it goes live. Blob will be an alternative to call data and primarily work on making transaction data available for a reasonable time and at a reasonable price.