Starknet, a layer-2 scaling protocol, is set to enhance the cost benefits of rollups on Ethereum following the implementation of the Dencun hard fork on March 13.
To coincide with the Dencun upgrade, the Starknet Foundation has announced the introduction of additional initiatives on its protocol to save fees. This hard fork is considered one of the most significant upgrades to Ethereum’s protocol since its transition to proof-of-stake consensus in October 2022.
The Dencun upgrade includes Ethereum Improvement Proposal (EIP-4844), which changes the way rollups store data on the Ethereum mainnet. Currently, layer-2 rollups aggregate and process transactions off-chain, then submit a summary proof of these transactions to the Ethereum blockchain.
EIP-4844 introduces a new method for rollups to add cheaper data to blocks by utilizing blob space instead of call data for storage. Storing cryptographic proofs of off-chain bundled transactions using call data has traditionally been expensive because all Ethereum nodes must process the data indefinitely. Proto-danksharding, named after the researchers who proposed EIP-4844, allows rollups to send and attach data blobs to blocks. This data is not accessible to the Ethereum Virtual Machine and is automatically deleted after 18 days.
David Silverman, the Vice President of Product at Polygon Labs, has previously highlighted the cost-effectiveness of blob space for rollups while providing the same security guarantees.
While ecosystem developers anticipate a delay in fee reductions by layer-2s in the coming weeks as they undergo governance and upgrade procedures to transition from call data to blob space, the Starknet Foundation has announced a dedicated hard fork upgrade to coincide with Dencun. The introduction of Starknet version 0.13.1 will shift from the expensive call data method to the more cost-effective blobs transaction type, resulting in significant fee reductions.
Starknet is expected to benefit greatly from this transition, as call data currently accounts for approximately 90% of the gas fees it pays to post transactions to the Ethereum mainnet.
Ilia Volokh, StarkWare’s Product Manager and Blockchain Researcher, expects to see accurate statistics reflecting the fee reduction within an hour of Dencun’s implementation. Users will immediately experience the full benefits of the upgrade.
Starknet’s shared prover (SHARP), which sends Starknet’s state diffs to Ethereum as call data, will now utilize blob space. State diffs contain information about updated contract storage and additional information on contract deployments.
Volokh also mentions that Starknet’s SHARP prover utilizes recursive proof technology, bundling previous proofs into batches called trains. The introduction of a new hash system in early 2024 will allow trains to handle a larger number of transactions and enhance the protocol’s efficiency.
In conclusion, the implementation of Dencun and the adoption of blob space by Starknet will lead to significant cost savings for rollups on Ethereum, with immediate fee reductions expected. Additionally, performance upgrades such as the utilization of recursive proofs will further enhance the efficiency of the protocol.