The Ethereum network, a pioneer in blockchain smart contracts, has addressed scalability and efficiency challenges through its ongoing Ethereum 2.0 upgrades. The introduction of Proof of Stake (PoS) with the Beacon Chain marked a significant shift, followed by various upgrades optimizing gas fees and functionality. ‘The Merge’ transitioned Ethereum from Proof of Work (PoW) to PoS in 2022.
The Shanghai Upgrade in April 2023 increased Ethereum’s liquidity by enabling validators to unlock staked ETH. The upcoming Danksharding upgrade, a pivotal Ethereum 2.0 phase, focuses on horizontal database scaling. This approach decentralizes data management and enhances scalability, making anyone eligible to become a validator.
The initial step, Proto-Danksharding (EIP-4844), boosts transaction volume by temporarily increasing block sizes and minimizing gas fees. It introduces data blobs that automatically delete after a set time, benefitting rollups and users with more cost-effective transactions.
Full Danksharding, stemming from Proto-Danksharding, takes rollup scaling to the next level. By expanding block-attached blobs from 1 to 64, it facilitates massive storage for compressed transaction data, accommodating numerous individual rollups and enabling millions of transactions per second on the Ethereum network. Overall, Ethereum’s evolution aims for improved user experience, security, and network sustainability.