Danksharding and proto-danksharding, explained.

Danksharding vs. proto-danksharding

Danksharding and proto-danksharding are critical components to improve Ethereum's consensus layer. These technologies aim to increase the scalability and efficiency of Ethereum, especially in terms of layer-2 package solutions.

Danksharding is a layer-2 scaling solution, designed to empower the world's second most popular Ethereum to achieve its full potential. Proto-danksharding is an intermediate step in the danksharding roadmap. Proto-dunksharding, approved as part of EIP-4844, was officially included in Ethereum's upgrade proposal in the Ethereum Cancun-Deneb upgrade.

The update was activated on the Gurley testnet on January 17th. According to Denkun's test schedule, the next significant phase is scheduled for January 30, with the implementation of the Sepolia testnet. Holeski's testnet is set to follow on February 7. However, the Ethereum development team has not yet announced the mainnet implementation date of the update.

Danksharding Ethereum aims to deploy Ethereum layer-2 solutions, especially coils, in a cost-effective and as fast as possible blockchain by users. Danksharding and proto-danksharding are the main factors for the future of Ethereum scaling.

Danksharding is one of the final steps in a series of long-term improvements to the Ethereum network to maximize network capacity. Highlights of this process so far have included major network shifts, including the shift from proof-of-work to proof-of-stake.

How layer-2 solutions can increase blockchain efficiency and scalability

Layer 2s enhance and enhance the capabilities of base layer blockchains such as Ethereum. For Ethereum, coils have emerged as a viable and effective layer-2 solution.

Layer-2 solutions refer to any secondary framework or protocol built on top of an existing blockchain that adds features that improve the scalability of the underlying blockchain. Layer 2 operates as a separate chain of networks from Layer 1 base chains, where transactions take place and are then periodically verified on-chain.

While base Ethereum can only process 15 transactions per second, Layer 2s can process thousands of transactions at a lower cost due to design choices in the edge network that maximize the transaction processing capabilities of Design-2 solutions.

Security and decentralization are still maintained because the largest decentralized base chain still has a process to verify off-chain transactions 2. Blockchain users can interact with a layer-2 front-end such as Arbitrum, which processes transactions faster. And cheaper than Ethereum.

Coils are a type of layer-2 solution alongside channels, plasma, sidechains and validium. Rollup-based layer 2s such as Arbitrum and Optimism handle transactions between Ethereum Layer 2s.

Rolls perform transactions at layer 2 before adding (encapsulating) the information they contain and periodically sending them to the main chain to verify this. This method allows for the distribution of fixed costs in several transactions, reducing the costs resulting from gas price fluctuations.

The expansion of Ethereum and the evolution of packages

A pioneering solution has been created to boost Ethereum expansion: Rollups. Powered by technologies such as Dansharding, blockchains represent a strong effort to increase Ethereum's scalability, reduce transaction costs, and maintain the network's fundamental principles of decentralization and security.

Optimistic rollups and zero knowledge rollups (ZK-rollups) are the two main types of rollups available. Optimistic Summaries is currently the most popular Ethereum scalability solution. They work with the Ethereum blockchain and are integrated, which is a critical advantage.

Optimists are called “optimists” because they assume that the transactions they make off-chain are valid. There is no on-chain proof of authenticity, and the ability to dispute transactions is built in with optimistic expectations for security.

Optimism Wrapping Challenges is a window for consumers to dispute transactions they deem invalid. In the window, you can challenge the validity of a transaction by providing evidence of fraud, which is a method of showing that a particular transaction or set of transactions is invalid.

Both the sequencer—similar to the verifier in layer 1, which provides and dictates the translation block—and the disputant must post a bond. If the transaction is found to be invalid, the sequencer's bond will be reduced. If the evidence of fraud is found to be invalid and the transaction is valid, the disputed bond will be cancelled.

Another major rollup method is ZK-rollup. Zero-Knowledge Scrolls print cryptographic proofs for off-chain transactions. Operators of ZK-rollup chains provide proofs of authenticity to the main chain that cryptographically demonstrate that proposed changes to the Ethereum state are the result of valid off-chain transactions.

Optimistic rollups are more popular than ZK-rollups because they can execute smart contracts. ZK-rollups, however, are mostly limited to simple transactions.

Rollups perform transactions outside of Ethereum, but currently effectively post transaction data to the network as call data. This process is set to evolve with proto-danksharding and danksharding.

Danksharding and Proto-Danksharding introduces databases to Ethereum

Optimizing Ethereum bundle solutions is based on specific danksharding and proto-danksharding components, such as data blobs and the KZG polynomial commitment scheme. These technological elements serve as the basis for enhancing Ethereum's scalability.

The main implementation of Dankisharding from layer-2 is the introduction of blobs. Blobs refer to large pieces of data designed to be part of Ethereum's transaction structure. Rollups currently use call data to store transaction data.

Calldata is imperfect for encryption because the data stored in it must be processed by all Ethereum nodes and remain permanently on the blockchain. This permanence is not always necessary for wrapping, as you only need the data for a certain period of time to confirm and execute transactions.

Proto-danksharding introduces databases that can be attached to transaction blocks and automatically delete them within one to three months. Blobs are 125 kilobytes of “blob” payload stored on the Ethereum consensus layer, not calldata like the Ethereum Virtual Machine (EVM). This method helps reduce storage costs and allows data in bulk transactions to be sent more cheaply, allowing savings for end users (ie, lower gas bills).

Proto-danksharding uses the KZG polynomial commitment method, which is named after the three main authors of the scheme (Kate, Zaverucha, and Goldberg). KZG compresses databases into smaller encryption commits.

KZG uses a cryptographic technique that allows data stored in a blob to be verified without the need to directly process the entire blob and reveal the entire content of the blob. This is compatible with the zero-knowledge design used by some Layer-2 protocols, which are used to some degree on Ethereum's scale.

That said, danksharding is a complete realization of scrolls. While proto-danksharding allowed rolling transactions to bind one blob to a block, danksharding expands this to 64 blobs. Danksharding is set to generate huge volume for optimistic releases to dump their compressed marketing data. Dansharding supports the expanding cloud ecosystem and allows for thousands of transactions per second.

Danksharding and Proto-danksharding Challenge the Blockchain Trilemma

For blockchain, achieving the balance between scalability, decentralization and security is almost impossible. Optimized layer 2s help overcome this trilemma.

The concept of the blockchain trilemma shows that it is extremely challenging for a blockchain network to achieve scalability, decentralization and security simultaneously. The term was coined by Ethereum founder Vitalik Buterin, and in his view, blockchain platforms can only achieve two of these three goals. They need to find out-of-the-box ways to efficiently scale and sustain blockchain transactions without sacrificing blockchain security and decentralization.

Unlike traditional financial networks, blockchains cannot rely on third parties such as banks to maintain records and verify transaction ledgers. In blockchain, this process is carried out by a decentralized network of independent computers called nodes.

A decentralized network with a large group of nodes also contributes to security. The more nodes a blockchain has, the more secure it is in theory. An attacker needs to invest more computing power to control a large network and 51% attack or control the network.

Security powered by high decentralization directly affects network scalability, as each transaction must be verified by multiple nodes. This means that as the network expands, more data needs to be processed by more participants.

These issues often arise with large blockchains such as Bitcoin and Ethereum, where transactions for end users are expensive and slow during network congestion because blockchain security models dictate processes that cannot be reversed. The development of the Ethereum protocol prioritized scalability to address these issues, especially given the network's rapid growth.

Optimized layer-2 solutions promote blockchain with centralized payment giants

While blockchain systems may inherently struggle to match the transaction processing efficiency of centralized giants like Visa, layer-2 solutions, such as rolls, facilitated by technologies like danksharding, level the playing field.

Centralized payment systems like Visa can process transactions faster because these networks are closed and do not require mutual understanding. Solutions such as danksharding and proto-danksharding are designed to challenge the blockchain trilemma by sharding the blockchain. Layer-2 based off-chain transaction processing was developed to enable increased capacity of the Ethereum network, and danksharding helps facilitate one of Ethereum's core layer-2 solutions: bundling.

While both danksharding and proto-danksharding contain the term sharding, neither follows the traditional model of blockchain sharding technology, which aims to split the blockchain into multiple parts. Ethereum shard chains are not part of the blockchain roadmap.

Instead, danksharding uses a distributed sample of data across blobs to measure Ethereum. This is much easier to implement than sophisticated blockchain sharding techniques. This model is sometimes referred to as “information sharing”.

When will the Ethereum roadmap be completed?

The completion date of the Ethereum Roadmap is variable and may change as new information and technological developments become available.

In the next six months, a few updates, such as staking withdrawals, are expected to be implemented. Some improvements, such as quantum resistance, may not be implemented for another five to 10 years.

Because components are developed simultaneously and at different speeds, it is difficult to know when the roadmap will be completed. Furthermore, external variables may cause the urgency of reform to change over time.

Ethereum's evolution can be compared to biological evolution, where adaptation is critical, and as the network becomes more performant, scalable and secure, fewer changes are needed.