Vitalik Buterin Praises Starknet’s Efforts to Boost Ethereum Scaling Solutions

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As a seasoned analyst with over two decades of experience in the tech and finance industries, I have witnessed the evolution of blockchain technology from its inception to its current state. In my opinion, Starknet’s v0.13.3 update is not only a significant step forward for Ethereum’s Layer 2 scaling but also a testament to the relentless pursuit of innovation in this space.

As a crypto investor, I’m excited about the latest development with Starknet, a Layer 2 scaling solution that has rolled out version 0.13.3. This update is designed to boost Ethereum‘s performance significantly by slashing blob gas costs nearly fivefold. The co-founder of Ethereum, Vitalik Buterin, applauded this update on social media, acknowledging Starknet’s impressive advancements in enhancing the data efficiency of rollups, a key element in scaling Ethereum.

Vitalik Buterin Applauds Starknet’s v0.13.3 for Cutting Blob Gas Costs by 5x

In his latest blog post about X, Ethereum co-creator Vitalik Buterin recognized the progress made by Starknet following their v0.13.3 upgrade. This upgrade substantially boosts Ethereum’s scalability on Layer 2 by optimizing data usage.

This updated version caters to the rising need for data containers called ‘blobs’, which store transaction details within Layer 2 rollups. Later, these blobs are stored in Ethereum’s main blockchain (Layer 1), expanding its storage capacity. The latest upgrade of Layer 2 rollups makes use of state-diff compression and transaction bundling to decrease the gas fees for blobs, providing a more budget-friendly option for transactions on upper layer-2 projects.

Vitalik Buterin added, 

“One part of L2 scaling is Ethereum increasing its blob capacity. The other part is rollups becoming more data-efficient. Good to see Starknet rising to the challenge. Would love to see more EVM rollups increasing data efficiency too.”

How Blob Gas Fee Reductions Enhance Ethereum’s Ecosystem

Starknet has introduced two creative methods, state-diff compression and transaction consolidation, to tackle the escalating expenses linked with data packets (blobs). These data packets store Layer 2 rollup transaction information before they are moved to Ethereum’s main blockchain. As the need for transactions rises, so does the space needed for these data packets on the blockchain, leading to higher costs for users.

These updates will reduce costs while ensuring efficient transaction processing and data storage, making Ethereum more scalable and cost-effective. Additionally, transaction squashing reduces the number of blocks by combining multiple transactions into a smaller batch, ensuring users pay only for the additional data their transactions contribute. Previously, every transaction bore the full cost of the data in each block, even if the data overlapped with other transactions. 

The recent update introduces a Layer 2 scaling method that calculates each transaction’s unique data value and offers reduced costs for shared data. Additionally, state-diff compression reduces the amount of transaction data transmitted to Ethereum’s primary network. As a result, these updates lower blob gas fees, improving affordability and efficiency within the Ethereum ecosystem.

As an analyst, I’d articulate it this way: In my analysis, aside from fee reductions, the burning of Blob gas fees is fundamentally important to Ethereum’s economic model. This process is akin to the burning of base transaction fees, where these fees are permanently taken out of circulation. According to Ultra Sound Money, around 100 Ether was burned in just the last seven days due to Blob fees alone. This mechanism serves to decrease Ethereum’s total supply, thereby reinforcing its deflationary nature and long-term value proposition.

At Devcon 2024 held in Bangkok, Ethereum’s co-founder, Vitalik Buterin, underscored the significance of decentralization, scalability, and inclusivity for Ethereum’s future growth during his speech. In this talk, he referred to Ethereum as a “global computer” that drives a distributed economic system. Moreover, he emphasized the impact of Layer 2 technologies like Starknet in enhancing both scalability and accessibility.

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2024-11-18 23:49