- The EIP-1153 “Transient Storage Opcodes” will allow traders and liquidity providers on Uniswap v4 to save majorly on gas fees.
- Similarly, the EIP 4844, also known as Proto-danksharding, shall come after the Cancun upgrade and make transactions cheaper by a massive 100x.
The Ethereum blockchain is set to undergo a major change with the Ethereum Improvement Proposal 1153 which will change the way it processes data. The EIP 1153 will introduce an advanced storage function thereby making the Ethereum blockchain more efficient than ever before.
Uniswap Labs explains how the next upgrade proposal will be a huge step for Ethereum, and others who are part of its ecosystem. Uniswap v4, the much-anticipated release by Uniswap DEX, shall rely on EIP-1153 “Transient Storage Opcodes”. Thus, it would allow liquidity providers and traders to save majorly on gas fees.
The upgrade will change how the blockchain records transaction data. Instead of storing and clearing data after each transaction, smart contracts will now use “transient storage,” a new data mechanism. This change will be implemented by adding new opcodes. Transient storage is a more cost-effective and efficient way to manage data. It also opens up new possibilities for Ethereum and other dApps built on the Ethereum Virtual Machine (EVM).
For e.g. with Uniswap v4, all liquidity pools will be held in one smart contract due to its singleton architecture. Thus, it will make liquidity logistics between various pools, faster as well as cheaper. Rather than moving assets between pools, the system will now use cross-asset swaps to adjust net balances. Uniswap Labs added:
We believe EIP-1153 will be the best design for flash accounting because t-store makes it cheaper to set and clear a storage slot which is necessary for flash accounting to operate effectively.
Activating EIP 1153 After Cancum Upgrade
One of the most anticipated additions to the Ethereum network design includes “Transient Storage Opcodes”. The Ethereum Cancun upgrade, set to take place in Q4, 2023, will bring significant enhancements to the design of Ethereum (ETH). In addition to EIP-1153, the upgrade will introduce a new opcode called “pay,” improve memory efficiency, and revamp call instructions, among other improvements.
Also, the Ethereum Improvement Proposal (EIP) 4844 is likely to drop the fees on Ethereum by 100x. EIP 4844, also known as Proto-danksharding, is an important component of Ethereum’s roadmap for scaling through roll-ups.
Its purpose is to optimize data management on Ethereum’s second-layer scaling solutions, making transactions significantly cheaper, potentially by 10-100 times. By streamlining data processes, the implementation of Proto-danksharding aims to increase the overall throughput of the Ethereum (ETH) mainnet. The EIP-4844 will go live on the Ethereum network by the second half of 2023.
Currently, Ethereum (ETH) is trading at a price of $1884 with a market cap of $226 billion. As the ETH price moves close to $1,900, there’s also been some reduction in the gas fees. On-chain data provider Santiment reported:
Ethereum’s network became rather pricey at $7.40 per transaction, the average fee has dropped back down to $2.45. Over the past 24 hours, $ETH and wrapped $WETH are getting the lion’s share of these fees.
