What is a Calldata? The Mechanism Behind XXXX Ethscription

The emergence of Ethscriptions has introduced a novel and more affordable way to store data on the Ethereum blockchain, offering a compelling alternative to traditional NFT. At the heart of this innovation lies the utilization of calldata. But what exactly is calldata, and how does it enable the unique properties of Ethscriptions?

This article will delve into the concept of calldata in Ethereum transactions and explore its crucial role in making Ethscriptions a cost-effective, on-chain data storage solution.

What is Calldata?

When you initiate an Ethereum transaction, whether it's sending Ether (ETH) to another user or interacting with a smart contract, the transaction includes various pieces of information. One of these components is the calldata field. Think of calldata as a "notes field" attached to your Ethereum transaction.

Sending ETH to a User

Typically, when you send ETH to another Ethereum address, this "notes field" (calldata) is left blank. The transaction primarily involves the sender's address, the recipient's address, and the amount of ETH being transferred.

Interacting with Smart Contracts

When you interact with a smart contract, however, the calldata field becomes essential. It carries the instructions for the smart contract, specifying which function to execute and the parameters or data to be used in that execution. For example, if you're transferring an NFT using a smart contract, the calldata will contain information about the transferFrom function, the sender, the recipient, and the token ID.

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Ethscriptions: Encoding Data Directly into Calldata

Ethscriptions leverage the calldata field in a unique way. Instead of using it to instruct a smart contract, Ethscriptions directly encode data into the calldata of a regular Ethereum transaction. This data can represent various forms of digital content, such as images, text, or even simple programs.

This approach distinguishes Ethscriptions from traditional NFT, which typically store the actual asset data off-chain (e.g., on IPFS) and only store a link to that data on the blockchain within a smart contract.

Why Calldata Makes Ethscriptions Cheaper

The primary reason Ethscriptions are significantly cheaper than NFT lies in how Ethereum charges for data storage:

Smart Contract Storage

Storing data permanently within a smart contract on the Ethereum blockchain is an expensive operation due to the gas costs associated with state changes.

Calldata Storage

Writing data to the calldata field of a transaction incurs a different, and generally lower, gas cost compared to permanent on-chain storage within a smart contract. This is because calldata is primarily intended for the immediate execution of a transaction and is not stored in the long-term state of the blockchain in the same way as smart contract data.

By utilizing calldata for data storage, Ethscriptions bypass the higher costs associated with smart contract storage, making them a more economical way to inscribe digital assets on the blockchain.

The Advantages of Using Calldata for Ethscriptions

Storing data on-chain via calldata provides several key benefits for Ethscriptions:

100% On-Chain

All the data associated with an Ethscription is directly recorded on the Ethereum blockchain, ensuring immutability and permanence.

Permissionless

Anyone can create an Ethscription by simply sending an Ethereum transaction with the desired data encoded in the calldata. No specific platform or approval is required.

Censorship Resistant

Once the data is inscribed on the blockchain through calldata, it cannot be altered or removed by any single entity.

Cost-Effective

As discussed, utilizing calldata for data storage is significantly cheaper than deploying and using smart contracts for the same purpose.

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Security and Trustlessness of Ethscriptions

The security and trustlessness of Ethscriptions stem directly from the underlying security and trustlessness of the Ethereum blockchain itself.

You can interact with the Ethscriptions protocol without relying on any external intermediaries. While indexers like those used to view Ethereum data (e.g., Etherscan) provide a convenient way to interpret and organize Ethscription data, they are not the source of truth. You can always independently verify the data stored in the calldata of Ethereum transactions.

Decentralization of Ethscriptions

Ethscriptions are decentralized by nature. They leverage existing Ethereum transaction data, which is inherently decentralized. No one's permission is needed to create or interact with Ethscriptions, and no single entity can prevent you from doing so.

In contrast, traditional NFTs often rely on data stored within specific smart contracts, which can be controlled or modified by the contract owner. Ethscriptions, by being directly inscribed into the decentralized transaction history of Ethereum, offer a higher degree of decentralization.

The Role of Off-Chain Indexers

The use of off-chain indexers to interpret Ethscription data does not make them centralized. Just as Ethereum users rely on indexers like Etherscan to easily view transaction history and smart contract interactions, Ethscription indexers serve as tools to organize and present the data stored in calldata.

If an indexer reports data that contradicts the rules of the Ethscriptions protocol, it is the indexer that is incorrect and needs to be fixed. The fundamental data resides on the decentralized Ethereum blockchain. The ability for any participant to independently verify the data on-chain is the key to maintaining decentralization.

The Origins of Ethscriptions

While the very first instance of data being inscribed in Ethereum calldata dates back to 2016, the formal Ethscriptions protocol was developed by Tom Lehman and Michael Hirsch. Their work was inspired by Bitcoin Inscriptions, which similarly store data directly on the Bitcoin blockchain, as well as the notable "proto-Ethscription" created by the Poly Network hacker.

Conclusion

The formal Ethscriptions protocol was developed by Tom Lehman and Michael Hirsch, drawing inspiration from Bitcoin Inscriptions and an earlier instance of data in Ethereum calldata.

Understanding calldata is key to grasping the innovative mechanism behind Ethscriptions and their unique advantages in the realm of on-chain digital assets. By cleverly utilizing this often-overlooked aspect of Ethereum transactions, Ethscriptions offer a more accessible and cost-effective way to inscribe and own digital content on the blockchain.

FAQ

What is Ethereum calldata?

Ethereum calldata is a read-only data location used to pass arguments to smart contract functions during a transaction. Think of it as the "notes field" of an Ethereum transaction, which is essential for smart contract interactions but can also be used to store arbitrary data, as in the case of Ethscriptions.

How do Ethscriptions use calldata?

Ethscriptions encode data directly into the calldata field of regular Ethereum transactions, rather than storing it within smart contracts or off-chain with links on-chain (like many NFTs).

Why are Ethscriptions cheaper than NFT?

Storing data in Ethereum calldata incurs lower gas costs compared to the permanent on-chain storage required by smart contracts that underpin most NFT. This makes Ethscriptions a more cost-effective way to store data on the blockchain.