After the completion of The Merge, Ethereum's largest upgrade to the network to date, Coinbase has announced the Surge as its next big step towards the Ethereum protocol development. The renowned crypto exchange announced that it would work with Ethereum Foundation and Optimism teams to specify, implement, and test to further catalyze the EIP-4844 upgrade.
This proto-danksharding or EIP-4844 upgrade to the Ethereum network will reduce the cost of layer 2 rollups by 10-100x and lead to the era of low-cost onchain activities. Aside from reducing the gas fees, the upgrade will also increase the transaction speed on the Ethereum Layer-2 rollups.
Coinbase is dedicating engineering resources and testing and modifying the EIP-4844 to aid in the wider adoption of crypto across the globe.
Lately, Coinbase announced the EIP-4844 upgrade and asked for public support and contributions to the upcoming upgrade. Under EIP-4844, the exchange would introduce a new transaction type to Ethereum. This type will accept the transient 'blobs' of data and store them to store the rollup data and aid in creating a new, low-cost fee market.
As a result of this upgrade, the fees on the layer-2 rollups are likely to go down by 10 to 100 times. With this upgrade, we will also get closer to full sharding while ensuring that the stakers can easily manage the new data storage requirements.
Coinbase mentioned that it believes that the upgrade will attract more customers across the globe in this ecosystem due to its secure nature, ease of use, and cheaper and quicker transactions. To add to it, the upgradation will also assist in the institutional adoption and development of Web 3.0.
Thanks to this collaboration with the Ethereum Foundation and Optimism teams and their hard work, they have achieved full specification for the execution and consensus of clients and working implementations in the Prysm and Geth clients.
Coinbase stated that they expect that in the coming months, they will further harden the specs, work on expanding the implementation works to clients, and launch an efficiently operable testnet. Keeping in mind the need for a reduction in transaction fees and increasing speed to bring more participants in the crypto economy, the firm is trying its best to deploy EIP-4844 to the mainnet safely.
As a result of more retail and institutional adoption with the EIP-4844 upgrade, the price of Ethereum is likely to jump higher in the coming days. The increased transaction speed and reduced cost will significantly help businesses and the broader crypto ecosystem. Also, managing several transactions via layer-2 rollups is considered an ideal approach.