Calldata Compression

Calldata Compression is the process of reducing the amount of data sent to a smart contract to minimize gas costs. Calldata is the input data provided to a function call, and each byte of non-zero data costs gas.

By encoding data efficiently, such as using shorter identifiers or removing redundant information, developers can lower transaction fees. This is especially important for Layer 2 rollups where calldata storage on the main chain is a primary cost driver.

Effective compression strategies allow for more transactions to be packed into each block, increasing overall network throughput. It is a critical optimization for scalable financial infrastructure.