Danksharding is the third major upgrade stage focusing on horizontal database scalability in Ethereum 2.0. This development will distribute the responsibility for managing large data generated by Layer-2 rollups. Unlike the traditional sharding model, Danksharding will use distributed data sampling among blobs to make Ethereum more scalable, reduce data storage costs, and enable everyone to be a validator. This increased accessibility will lead to more decentralization and enhanced security.
EIP-4844, or Proto-Danksharding, is the first step towards achieving full Danksharding. It aims to address Ethereum’s scalability issues by temporarily expanding the transaction volume in the network with a temporary solution, increasing the block size to 2 MB. This will reduce gas fees for users and make the network more efficient.
Proto-Danksharding provides temporary data blobs that can be seamlessly transmitted and attached to blocks. These blobs allow for the provision of inaccessible data to the Ethereum Virtual Machine (EVM), which automatically deletes them within a specific time frame (one to three months). This update will significantly reduce collection costs and ultimately provide end users with more affordable transaction options.
Full Danksharding is the ultimate evolution of rollup scaling derived from Proto-Danksharding. This stage will increase the number of blobs added to blocks from 1 to 64 and provide a massive storage space for compressed transaction data of rollups to be easily stored. This upgrade will also offer seamless support for hundreds of separate rollups and make millions of transactions per second (tps) a concrete reality on the Ethereum network.
While the full implementation of Danksharding may take several years, Proto-Danksharding may come earlier. EIP-4844 is at an advanced stage with agreed-upon specifications and prototypes already implemented on the client side. After the successful conclusion of the Shanghai upgrade, these changes can be implemented on a public test network. Some experts believe that Ethereum may gain sharding capabilities by the end of 2023 or the beginning of 2024.