EIP-4844
EIP-4844, also known as Proto-Danksharding, is an Ethereum upgrade that introduced the concept of blobs to the network. It creates a new transaction format that carries large blobs of data, which are accessible to the rollup but not stored by the execution layer indefinitely.
This proposal was designed to reduce the cost of using layer two solutions by providing a dedicated, cheaper pathway for data availability. It is a major milestone in the scaling roadmap, as it directly addresses the high costs that previously hindered the adoption of rollups for retail-scale financial applications and derivatives.
Glossary
EIP-712 Standard
Application ⎊ EIP-712 Standard defines a standardized method for structuring data within Ethereum transactions, enabling improved readability and security for off-chain signing.
Rollup Settlement Costs
Expense ⎊ Rollup settlement costs represent the fees paid to the Layer 1 network to finalize a batch of transactions.
Market Makers
Liquidity ⎊ Market makers provide continuous buy and sell quotes to ensure seamless asset transition in decentralized and centralized exchanges.
Derivatives Trading
Analysis ⎊ Derivatives trading, within cryptocurrency and broader financial markets, represents the valuation and transfer of risk associated with underlying assets, extending beyond direct ownership.
EIP-1559 Base Fee Modeling
Calculation ⎊ EIP-1559’s base fee is algorithmically determined per block, dynamically adjusting to network congestion through a burn mechanism, influencing transaction costs.
Order Flow
Flow ⎊ Order flow represents the totality of buy and sell orders executing within a specific market, providing a granular view of aggregated participant intentions.
EIP-86
Standard ⎊ EIP-86, or Ethereum Improvement Proposal 86, introduced a standard for smart contract-based accounts, laying the groundwork for account abstraction on the Ethereum network.
Regulatory Arbitrage
Action ⎊ Regulatory arbitrage, within cryptocurrency, options, and derivatives, represents the exploitation of differing regulatory treatments across jurisdictions or asset classifications.
Data Cost
Data ⎊ The concept of data cost, within cryptocurrency, options trading, and financial derivatives, represents the aggregate expenses incurred in acquiring, processing, storing, and utilizing data essential for informed decision-making and operational efficiency.
EIP-1559 Base Fee Hedging
Hedge ⎊ EIP-1559 base fee hedging represents a strategy employed to mitigate the financial impact of unpredictable network fee fluctuations on Ethereum.