Starknet Unveils v0.13.3: Reduces Ethereum Blob Gas Costs by 4.5x, Earning Vitalik Buterin’s Praise

Starknet, a prominent player in ethereum‘s Layer 2 scaling solutions, recently released version 0.13.3, aiming to significantly enhance the efficiency of Ethereum’s network. This update focuses on reducing the cost of blob gas, an integral part of transaction storage on Ethereum, by approximately five times. The update has received commendation from Ethereum co-founder Vitalik Buterin, who highlighted Starknet’s efforts in improving rollup data efficiency as a vital step toward Ethereum scaling.

Vitalik Buterin, in a post on social media platform X, formerly known as Twitter, expressed his appreciation for Starknet’s latest advancement. He acknowledged that the v0.13.3 update makes a substantial improvement in Ethereum’s Layer 2 scaling by optimizing data management. The update targets an escalating demand for blobs, which are used to store transaction data processed by Layer 2 rollups before being ultimately stored on Ethereum’s Layer 1 blockchain. This requires additional storage space and can increase transaction costs.

The newly introduced update utilizes two core innovations: state-diff compression and transaction squashing. These methods are designed to lower the blob gas fees, providing a more economical framework for transactions within top layer-2 projects. Buterin also emphasized the necessity of increasing blob capacity on Ethereum’s part while encouraging rollups like Starknet to enhance data efficiency.

The reduction in blob gas fees has broader implications for Ethereum’s ecosystem. By implementing state-diff compression and transaction squashing, Starknet addresses the cost challenges linked to managing blobs—a critical component for storing Layer 2 transaction data on Ethereum’s main blockchain. As the volume of transactions grows, the demand for storage increases, consequently pushing up user costs. This update not only reduces these expenses but also ensures a more streamlined process for data storage and transaction processing, enhancing Ethereum’s scalability and cost-effectiveness.

Transaction squashing, in particular, takes advantage of aggregating multiple transactions into a smaller bundle. This method allows users to incur costs only for the incremental data their transactions contribute, instead of the full data cost of each block. Previously, each transaction had to bear the full data cost, even if the data was shared across multiple transactions. The v0.13.3 update rectifies this by evaluating the unique data contribution of each transaction and providing discounts for shared data. Concurrently, state-diff compression minimizes the size of transaction data that needs to be dispatched to Ethereum’s primary network, collectively ensuring that blob gas fees are reduced, making the Ethereum ecosystem more accessible and efficient.

Moreover, these updates have important ramifications beyond mere cost reductions. The burning of blob gas fees plays a key role in Ethereum’s economic model. Similar to the burning of base transaction fees, blob fees are permanently removed from the circulating supply. As reported by Ultra Sound Money, approximately 105 eth was burnt over a recent seven-day period purely from blob fees. This mechanism helps to curtail Ethereum’s supply, contributing to the cryptocurrency’s deflationary dynamics and enhancing its long-term value proposition.

In his keynote speech at the Devcon 2024 event held in Bangkok, Vitalik Buterin further elaborated on Ethereum’s future trajectory. He underscored the importance of decentralization, scalability, and inclusivity in Ethereum’s evolution. Describing Ethereum as a “world computer” that powers a globally decentralized economy, Buterin highlighted the critical role of Layer 2 solutions such as Starknet in promoting scalability and accessibility. These solutions are integral to Ethereum’s ambition of turning into a more robust, secure, and efficient blockchain.

Starknet’s proactive approach in slashing blob gas fees is not just a technical enhancement but a strategic move to reinforce Ethereum’s scalability capabilities. As the blockchain industry continues to expand, the need for efficient and scalable solutions becomes increasingly crucial. Starknet’s latest update signifies a step forward in this direction, aligning with Ethereum’s broader vision of establishing a decentralized and inclusive global financial system.