On Saturday (December 31, 2022), Ethereum educator, investor, and independent advisor Anthony Sassano explained why he believes 2023 will be an excellent year for Ethereum ($ETH). Sassano told his 232,000+ Twitter followers: “Two major updates are coming to Ethereum in 2023: – Beacon chain payouts which contrary to popular belief will lead to *more* ETH stakes, not less: EIP4844/Proto -thanksharding brings 10x- 100x reduction in fees incurred for users It’s going to be a big year – buckle up “If you’re unfamiliar with EIP 4844, this” introduces a new transaction type for Ethereum that accepts “blobs” of data that exist stay in the Beacon node for a short time.” Such changes are “compatible with Ethereum’s scaling roadmap” and “Blobs are small enough to keep disk usage manageable.”
On the motivation for EIP 4844, the Ethereum Foundation says the following: “Stacks are the only trustworthy scaling solution for Ethereum in the short to medium term and possibly in a long time. Fees for transactions on L1 have been very high for months, and there is an increased urgency to do whatever is necessary to facilitate an ecosystem-wide transition to rollups. Rollups significantly reduce fees for many Ethereum users: Optimism and Arbitrum often offer prices ~3-8 times lower than Ethereum’s base layers, and ZK-Rollups, which have better data compression and avoid trapping signatures, can have fees between 40 and 100 times lower than the base layer.
“However, even these rates are prohibitively expensive for many users. The long-term solution to the long-term inadequacy of rollups has always been data sharding, adding ~16MB per block of dedicated data storage to the chain that rollups could use. However, the full implementation and implementation of data sharding will still take some time.
“This EIP provides a temporary solution until then by implementing the transaction format used in sharding but without actually fragmenting those transactions. Instead, the data in this transaction format is simply part of the beacon chain and is downloaded in full to all consensus nodes (but can be removed after a relatively short delay). Compared to full data sharding, this EIP has a reduced limit on the number of these transactions that can be included, equivalent to a target of ~0.25 MB per block and a limit of ~0.5 MB. Regarding EIP 4844, when asked why he gave such an extensive range for the deferral fee reduction, Sassano said: “It’s hard to predict what the cost reduction will be for each deferral, so we’re guessing for now – it will depend on How Every Rollup Uses Blobs – Not All Rollups Are Created Interestingly, crypto educator and influencer DeFi Dad noted today (January 1, 2023) that 2022 was an excellent year for Ethereum:
Don’t let the bear get you down. 2022 was a big year for #Ethereum!
– 99% reduction in ETH inflation since The Merge
– 28k NFT projects launched by June 30 with >1M unique wallets across a total trade volume of 963k ETH ($1.15B)
– Ethereum settled >$20B in value daily since May https://t.co/4v2J54E8et
— DeFi Dad ⟠ defidad.eth 🦇🔊🐼 (@DeFi_Dad) January 1, 2023
On October 26, 2022, Sassano explained how the Ethereum to merge update impacted $ETH net issuance. Sassano, co-founder of EthHub (“the essential resource for Ethereum information, including open source documentation, podcast, and newsletter,” said: “It has been 41 days since The Merge. If Ethereum were still in PoW, there would be up to 488,000 ETH miners could throw into this pump. Instead, since their merger, the net issuance is only 1,300 ETHS; participants can wait to sell any of it… And you’re still bearish? It’s even more bullish than This because the PoW figure above includes burning.