Ethereum's EIP 4844 Dencun Upgrade: A 85-Day Analysis

Ethereum's EIP 4844 Dencun Upgrade:
An 85-Day Analysis

Ethereum's EIP 4844, part of the Dencun upgrade, has seen substantial adoption of blob-carrying transactions (Type 3) within its first 85 days. A deep dive into this period reveals several key trends and insights about the upgrade's impact on Layer 2 (L2) protocols and the broader Ethereum ecosystem.

The Blocknative data science team recently published an in-depth analysis of the performance of Blobs since its launch; you can read the full article here or read on for some highlights. 

Layer 2 Protocol Dominance

A significant number - 77.97% - of Type 3 transactions are submitted by just 25 L2 protocols, highlighting their role in driving the adoption of this new transaction type. Among these, 72% carry only one blob, indicating a preference for simplicity and perhaps cost-efficiency in these early stages.

Transaction Confirmation Times

One notable challenge observed is that Type 3 transactions take 2.1 times longer to confirm than non-Type 3 transactions. This delay can be attributed to the novelty and complexity of handling blob data within the Ethereum network, which requires optimizations and adjustments in the consensus mechanisms.

Gas Fees and Competition

The median MaxPriorityFeePerGas for Type 3 transactions remains around 1 GWEI, but there was a notable spike to 4 GWEI in June 2024. This increase is likely due to heightened competition among L2 protocols, as they vie for efficient transaction processing within the limited block space.

Blob Storage Utilization

The usage of blob storage has varied, with many transactions utilizing it for efficient data handling. The adoption rate indicates a growing understanding and trust in the new transaction type, but also suggests room for improvement in terms of optimization and network capacity.

Private Blob Market

Interestingly, we have seen blob transactions sent privately. There have been at least 5-20 private Type 3 transactions per day since the Dencun upgrade. With new L2s frequently entering, we'll see how the private blob marketplace evolves.

Future Prospects

As the Ethereum community adapts to EIP 4844, the insights from these initial 85 days provide a valuable roadmap for further improvements. Enhancements in transaction confirmation times, better fee management, and optimized blob storage are likely to be focal points for protocol developers.

For an in-depth analysis and additional insights, you can read the full article here.