Coinbase Joins Ethereum Foundation, Optimism To Improve ETH Transaction Speed and Cost
Coinbase expressed that it is working with the Ethereum foundation and Optimism's aim to accelerate the EIP-4844 upgrade.
The upgrade is an addition to the Ethereum merge and will scale Layer 2 rollups to increase transaction throughput and reduce transaction fees by 10 to 100 times.
With EIP-4844 upgrade is expected to affect the Ethereum network by reducing gas fees and increasing transaction speeds on the Ethereum Layer 2 roll-ups.
Ethereum completed the largest upgrade to the network the Merge. The Merge upgraded Ethereum from Proof-of-Work to Proof-of-Stake making it more secure, less energy use, and better for implementing new scaling solutions.
EIP-4844 is an upgrade to the Ethereum network that will reduce the cost of layer 2 rollups by 10 to 100x and introduce a new era of low-cost on-chain activity EIP-4844 works by introducing a new transaction type to Ethereum that accepts ephemeral "blobs of data"
Blob data storage is built for storing rollup data and would enable the creation of a new lower cost-free market with this change in place we expect fees on Layer 2 rollups to decrease 10 to 100x. The upgrade takes Ethereum one step closer to full sharding and ensures that the new data storage requirements are manageable for stakes.
Brian Armstrong, CEO of Coinbase, tweeted:
“Proud of this contribution to the Ethereum ecosystem. We have a small team working on proto-danksharding, which promises to create 100X capacity on roll ups. Scalability will unlock many new use cases in crypto.”
According to Coinbase EIP-4644 will bring customers into the ecosystem due to increased security ease to use and faster and cheaper transactions it will enable institutional adoption and development of Web3.