Ethereum's Blobs Slash Rollup Fees by Storing Data Off-Chain

Ethereum's Dencun upgrade introduced "blobs" to reduce layer 2 transaction costs. Blobs store data off-chain unlike expensive on-chain call data.

Solutions like Optimism and Base have implemented blobs, leading to significantly lower average transaction fees - Optimism down from $1.4 to 4 cents.

Rollups can now store data in cheaper blobs instead of call data, allowing them to process transactions at lower costs.

Rollups batch and compress transactions before sending them to Ethereum mainnet, further reducing fees.

Though transaction costs on layer 2s should drop 90% due to blobs, native tokens of rollups have yet to see a boost in investor interest.