EIP 4844: 10x Cheaper Transactions with Blobs in the Dencun Upgrade

Mar 13, 2024

Today, the Ethereum blockchain successfully executed the most significant upgrade since The Merge, with the introduction of EIP 4844, a part of the Dencun Upgrade. Rollup Layer 2 (L2) blockchains, such as Optimism, Arbitrum, and Base, pay to store state data on ethereum’s mainnet. Up until Dencun, storing data on Ethereum's L1 Mainnet was the most expensive part of transacting on rollups. EIP 4844 adds a new cheaper data structure called blobs, which rollup L2 chains can use to store data, dropping the overall transaction price on rollups by an estimated 10x, often fractions of a cent. In times of increased traffic on Ethereum, often due to increased adoption during bull markets, gas prices are often cited as a huge pain point for users. With EIP4844 and rollups, this pain point can be a thing of the past. 

Understanding EIP 4844 and Its Impact

Until Dencun, Rollups used “calldata” to store data about their state on Ethereum’s Mainnet because this was the cheapest data storage available. EIP 4844, also known as "blobs," introduces a novel approach to handling transaction data on the Ethereum network. By allowing large chunks of data to be stored in temporary blobs, the Ethereum blockchain can process transactions more efficiently, reducing the strain on the network storage and significantly lowering gas fees.

Key Features of EIP 4844

  • Data Offloading: Rollup transactions can now offload a significant portion of their data to blobs, reducing the on-chain footprint.Further, blobs are stored on beacon nodes instead of the execution layer, “enabling the execution layer to work on other initiatives in parallel.

  • Cost Reduction: The reduction in on-chain data storage costs directly translates to lower gas fees for transactions in rollups. It may also reduce congestion on Ethereum’s L1 Mainnet due to less traffic attributable to rollups. 

  • Enhanced Scalability: This upgrade is a leap towards greater scalability, ensuring the Ethereum network can accommodate future growth and prevent gas spiking from functionally blocking users from transacting onchain.

The Role of Franklin Payroll in Leveraging EIP 4844

Franklin supports Ethereum’s largest rollup ecosystems, such as Optimism, Arbitrum, and Base. Franklin is a gasless platform, meaning that we cover all gas costs for our customers, but our users will still benefit from this upgrade. 

Benefits for Franklin Payroll Users

  • Lower Transaction Costs After Payroll: Managing a crypto treasury will be cheaper when organization choose to operate on rollups. Further, workers receiving funds on rollups will experience significantly reduced transaction fees. 

  • Faster Processing Times:The ability to offload data to blobs means transactions can be processed at a quicker pace, ensuring your financial back office speeds along seamlessly.

  • Scalability for Businesses: The scalability improvements brought about by EIP 4844 mean that businesses can grow without worrying about escalating transaction costs or delays that often accompany increased traffic on Ethereum.


The release of EIP 4844 as part of the Ethereum Dencun Upgrade marks a significant milestone in the evolution of the Ethereum network. By introducing blobs for temporary data storage, this upgrade promises to make Ethereum Rollup transactions faster, cheaper, and more scalable. Franklin Payroll, with its support for the largest rollups, is well-positioned to take full advantage of these improvements, providing its users access to more efficient and cost-effective payment rails. As the Ethereum ecosystem continues to evolve, upgrades like EIP 4844 underscore the network's commitment to innovation and accessibility, paving the way for a more scalable and user-friendly blockchain infrastructure.

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