Ethereum

2024

Starknet

when

In a recent post on the social media platform X, Ethereum (<a href="https://yellow.com/asset/eth">ETH</a>) cofounder Vitalik Buterin<a href="https://coingape.com/vitalik-buterin-praises-starknets-efforts-to-boost-ethereum-scaling-solutions/"> lauded</a> layer 2 scaling solution Starknet’s new 0.13.3 version. 
The new version will improve the Ethereum network’s efficiency as it reduces the blob gas costs by fivefold. Buterin applauded this stride of Starknet in making the network more data efficient which is essential for Ethereum scaling. 
Through the new version, Starknet is trying to cater to the growing demands for blobs which are necessary to store transaction data in layer 2 rollups. 
The Layer 1 blockchain of Ethereum usually stores these blobs and increases storage capacity. With the layer 2 update transaction squashing and state-diff compression will be employed which will eventually lead to reduced blob gas fees. This provides a cost-effective transaction solution for Layer 2 projects. 
The rising costs of blobs can be reduced in two ways - transaction squashing and state-diff compression. Blobs are used to store transaction data on Later 2 rollups prior to their transfer to the Layer 1 Ethereum blockchain. As transaction increases, the blobs also increase in size on the blockchain which causes a surge in costs for crypto users. 
The new Starknet update seeks to reduce this burden by ensuring data efficiency in processing transactions and data storage. This will make the Ethereum Layer 2 blockchain more cost-effective and scalable. That's why it has got the approval from Buterin. 
The way to reduce blobs is transaction squashing as it combines multiple transactions into smaller batches, making crypto users pay for the additional data the transactions contribute. Earlier, every transaction had to bear the entire data cost of each block. This happened even when there was data overlap with other transactions. 
The new Starknet update can now calculate the data contribution of individual transactions and apply discounts when the data is shared between transactions. State 
Another way to reduce blobs costs is state-diff compression which lowers the transaction data size sent to Ethereum Layer 1 blockchain. 
These two can work in tandem to lower blob gas fees, ultimately making the Ethereum ecosystem more efficient and affordable for the crypto users 
Other than these, burning blob gas fees is an important part of the tokenomics of this network as they are permanently removed from the blockchain in this method. In the last one week, blob fee burning resulted in the destruction of 100 ETH. This effectively reduces the token’s supply and leads to a long-term value proposition following the deflationary model. 
Earlier in Devcon 2024 in Bangkok, Buterin spoke about the importance of scalability, decentralization and inclusivity in the blockchain. According to the Ethereum cofounder, the network is a “world computer” that is powering the decentralised economy all over the world. Hence layer 2 solutions like Starknet are crucial for the accessibility and scalability of the blockchain.

Ethereum Founder Vitalik Buterin Lauds Starknet’s 0.13.3 Update For ETH Scaling

Yellow News

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