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Rachel Welch

18 November 2022 63 Read Crypto

What Is EIP-4488?

EIP-4488 is a protocol aimed at reducing calldata. Calldata is the read-only byte location space used to store the data parameter for a command or transaction. The protocol is intended to reduce the cost of gas used to transmit calldata and to limit its usage to a minimum for transactional purposes.

Reduces transaction fees

The Abu Dhabi Securities Exchange has announced a reduction in overall transaction fees. The new fee structure will be based on a block weight concept and fees per weight unit. This will reduce the burden on the blockchain and will make transactions cheaper. Small businesses will also benefit from the reduction in transaction fees by allowing buyers from other countries to purchase their goods.

Reduces gas fees for Layer-2 rollups

Layer-2 rollups are a way to reduce gas fees for Ethereum transactions. By performing hundreds or thousands of transactions outside of the main Ethereum network, rollups reduce network congestion and reduce gas fees. Depending on the implementation, rollups can reduce gas fees by 10x or more.

Many rollups have inefficient settings for posting calldata to L1, which makes the rollup expensive. It is the primary cost associated with the rollup. Optimism, for example, posts data to L1 Ethereum for every transaction, whereas dYdX only posts account balances to the mainnet. This means that dYdX interacts with the L1 about 20% less than Optimism, which reduces fees by 90 percent.

Implementation challenges