How does EIP-4844 affect Ethereum scalability and transaction fees?

#ETH# In Ethereum protocol upgrades, EIP-4844 demonstrates outstanding innovative power. This upgrade, by introducing Proto-Danksharding technology, takes Ethereum scalability solutions to new heights. Its direct effects include lowering Ethereum transaction fees and optimizing blockchain performance, with far-reaching impacts on the Ethereum ecosystem. This shift enables users to enjoy lower costs for on-chain activities and lays the foundation for future sharding technology, marking an important milestone in Ethereum’s development history.

In the history of Ethereum protocol upgrades, EIP-4844 is undoubtedly a milestone. This Ethereum Improvement Proposal was officially launched in the Dencun upgrade on March 13, 2024, introducing Proto-Danksharding technology and fundamentally changing Ethereum’s scalability landscape. The core innovation of EIP-4844 is the introduction of the Blob transaction mechanism, which allows Layer 2 networks to temporarily store data in beacon nodes without permanently storing it on the blockchain. This design breakthrough brings unprecedented efficiency improvements to the Ethereum ecosystem, signifying Ethereum’s shift from merely pursuing decentralization to balancing scalability and security.

The most direct impact of EIP-4844 is the dramatic drop in Layer 2 transaction fees. Before the upgrade, the average transaction fee for Arbitrum was $0.37, and for Optimism, $0.32. After the upgrade, Arbitrum’s fee plummeted to $0.012, and Optimism’s dropped to $0.009—a reduction of 97%. This effect of lowering Ethereum transaction fees far exceeded industry expectations, with rough estimates showing cumulative transaction costs dropping by 10 to 100 times.

The implementation mechanism of blockchain performance optimization is worth deeper understanding. Blob transactions create an entirely new way of storing data; compared to the traditional calldata method, Blob data is cheaper and has a shorter lifecycle. Layer 2 applications do not need to pay high costs for permanent data storage—only to keep it available during its validity period (about 18 days). This design meets data availability needs while greatly lowering operational costs, allowing high-frequency applications such as DeFi, gaming, and social to transact at negligible costs. Users gain substantial benefits from this Ethereum protocol upgrade, as the sharp drop in transaction costs directly enhances application usability and competitiveness.

Proto-Danksharding technology represents the evolutionary direction of Ethereum scalability solutions. This technology is essentially a simplified version of full Danksharding. Due to the high complexity of full sharding implementation, the Ethereum developer community chose a gradual approach. The Blob mechanism introduced by EIP-4844 lays the foundation for eventual full sharding and creates conditions for qualitative change in the Ethereum ecosystem.

The current implementation has already shown significant scalability effects, but this is just the beginning. Subsequent upgrades such as Pectra (May 2025) will introduce the EIP-7702 account abstraction feature, while the Fusaka upgrade (December 2025) will further introduce the PeerDAS (Peer Data Availability Sampling) mechanism, expected to reduce Layer 2 data costs by an additional 40 to 60%. These continuous Ethereum scalability solutions are steadily progressing according to Vitalik Buterin’s roadmap, with the ultimate goal of achieving the capability for over 100,000 transactions per second.

The Ethereum ecosystem is undergoing a profound transformation. The implementation of EIP-4844 not only solves the high-fee problem but also injects new vitality into the entire ecosystem. Developers have greater room for innovation as application cost constraints are alleviated. In the DeFi sector, lending protocols, exchanges, and derivatives platforms all benefit from reduced fees, with user experience and transaction frequency greatly improved. Gaming applications enable high-frequency on-chain asset interactions at minimal costs, making the play-to-earn model feasible. On the social application level, users can interact on-chain at extremely low costs.

Another dimension of blockchain performance optimization is at the infrastructure level. Validators and node operators benefit from lighter operating conditions thanks to Proto-Danksharding technology, lowering the technical threshold for network participation. The Fusaka upgrade further introduces a historical data expiration mechanism, allowing nodes to discard historical data prior to the merge, saving each node hundreds of GB of storage and speeding up new validator synchronization. These improvements ensure the sustainable development of the Ethereum network and the protection of its decentralized nature.

According to existing data, Ethereum’s total market value is $37.7 billion, with a market share of 12.06%, ranking second among crypto assets. These figures reflect the market’s recognition of Ethereum as a mainstream blockchain platform. The implementation of EIP-4844 and subsequent upgrades further strengthen Ethereum’s advantages in scalability and user experience, laying a solid foundation for the ecosystem’s long-term development.

This article explores the revolutionary impact of EIP-4844 on Ethereum scalability and transaction fees, introduces how Proto-Danksharding technology improves blockchain performance and reduces Layer 2 transaction costs—especially promoting development in DeFi, gaming, and social applications. The article details the 97% fee reduction effect and the roadmap for future scalability upgrades, targeted at blockchain developers and users enthusiastic about the Ethereum ecosystem. Keywords: EIP-4844, Ethereum scalability, Proto-Danksharding, Blob transaction mechanism, Layer 2 transaction fees.