Bitfinex Alpha #56 | Proto-Danksharding is a Potential Game-Changer?

The #cryptocurrencymarket has entered a quieter phase: metrics such as network fees, active addresses, and transactions have seen a decrease for both #Bitcoin and #Ethereum in the past few weeks, while price movements have remained relatively stable. A noteworthy development poised to spur #Layer2 (L2) adoption is the advent of #protodanksharding. This mechanism aims to reduce transaction costs by introducing "data blobs" to provisionally store data on #L2 transactions until they are validated by #Layer1 (L1). This replaces the existing "#CALLDATA" system, where data is perpetually stored on the #mainnet. Since more than 90 percent of L2 transaction costs are allocated to #L1 data storage, the implementation of data blobs under #EthereumImprovementProposal (@EIP) 4844 is projected to reduce L2 fees by at least ten times. Learn more about the technical deployment of Proto-Danksharding and the implications for users in [Bitfinex Alpha Issue #56](https://blog.bitfinex.com/wp-content/uploads/2023/05/Bitfinex-Alpha-56.pdf), and [subscribe](https://blog.bitfinex.com/bitfinexalpha/) to our weekly newsletter to stay tuned. #BitfinexAlpha