Coinbase Joins Ethereum Foundation, Optimism To Improve ETH Transaction Speed and Cost

Crypto exchange Coinbase announced working with the Ethereum Foundation and Optimism teams to accelerate the EIP-4844 upgrade. The upcoming proto-danksharding or EIP-4844 upgrade will reduce gas fees and increase transaction speed on the Ethereum Layer-2 rollups. In fact, Coinbase is dedicating engineering resources and testing the EIP-4844 to further drive crypto adoption.

Coinbase Support EIP-4844 Upgrade for Ethereum Scalability

Coinbase in a press release on October 7 announced public support and contributions to the upcoming EIP-4844 upgrade. The upgrade will scale Layer-2 rollups to increase transaction throughput and reduce transaction fees by 10-100 times.

Brian Armstrong, CEO of Coinbase, tweeted:

“Proud of this contribution to Ethereum ecosystem. We have a small team working on proto-danksharding, which promises to create 100X capacity on roll ups. Scalability will unlock many new use cases in crypto.”

Coinbase believes the EIP-4844 will bring customers into the ecosystem due to increased security, ease of use, and faster and cheaper transactions. Moreover, it will enable institutional adoption and developments to Web3.

Coinbase is working with the Ethereum Foundation and Optimism teams to accelerate the EIP-4844 upgrade. Moreover, the crypto exchange dedicated engineering resources and testing the EIP-4844. Until now, the combined team has a full specification for the execution and consensus clients, releases for the Ethereum clients Prysm and Geth, preparations for the KZG ceremony, and launched Devnet v1.

EIP-4844 reduces fees through a new transaction type to Ethereum that accepts “blobs” of data in the beacon node for a short period of time. It is forward-compatible and keeps disk usage to a minimum.

In fact, anyone including a rollup, an exchange, or interested individuals can contribute and support the EIP-4844 for the next “Surge” developments.

Ethereum (ETH) Price After the Upgrade

Ethereum (ETH) price is most likely to jump higher with the EIP-4844 upgrade due to more retail and institutional adoption. The increased transaction speed and reduced cost will help businesses and the broader ecosystem. Also, managing a large number of transactions through Layer-2 rollups is an ideal approach.

At the time of writing, the ETH price is trading over the $1,350 level, continuing sideways movement since the start of the month.