Dencun: An Ethereum Lifeboat to Compete in the Sea of ​​Blockchain

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Bittime - The Ethereum Foundation announced that thehighly anticipated Dencun upgrade has been successfully activated on all testnets and is scheduled to be deployed on mainnet on March 13, 2024. This upgrade marks an important step for Ethereum, ushering it into a new era of higher scalability and efficiency.

The New Version of Dencun Makes Significant Changes

Dencun is a major upcoming upgrade to the Ethereum blockchain. This upgrade is scheduled to be implemented on the Ethereum mainnet. Dencun is expected to bring significant changes to Ethereum

1. Introduction to temporary data blobs with EIP-4844

This feature, known as “protodanksharding”, is expected to drastically reduce Layer-2 blockchain network transaction costs. This could make Ethereum more competitive with other Layer-1 solutions such as Solana and Avalanche . Its uses are:

• Drastically reduces Layer-2 blockchain network transaction costs.
• Improves Ethereum scalability by enabling future sharding.
• Making Ethereum more competitive with other Layer-1 solutions such as Solana and Avalanche.

Example:

• An artist wants to create an NFT (non-fungible token) of his work to sell on the NFT marketplace. Currently, high gas costs make it impossible to do so. With Dencun, gas costs will drop significantly, allowing artists to create and sell NFTs of their work easily and affordably.
• A company wants to build a dApps platform for commodity trading. This platform requires high throughput to be able to process large numbers of transactions quickly. With Dencun, Ethereum will be able to support these dApps platforms and enable companies to achieve their goals.

2. Increased Throughput

Dencun will increase Ethereum throughput, allowing the network to process more transactions per second. This is important to support the growth of decentralized applications (dApps) on Ethereum.

Dencun is expected to:

• Significantly increases Ethereum throughput, with some estimates showing an increase of up to 100,000 transactions per second.
• Reduce network congestion and transaction waiting times.
• Opens up new possibilities for applications that require high scalability, such as blockchain games and digital identity platforms.

Example:

• Currently, Ethereum can only process around 15 transactions per second. This limits the number of applications that can run on Ethereum and causes network congestion. With Dencun, Ethereum will be able to support more applications and increase its scalability.
• A popular blockchain game currently has millions of active users. However, the game often experiences network congestion due to Ethereum's limited scalability. With Dencun, the game will be able to handle more users and provide a better gaming experience.

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3. Reduced Gas Costs

Gas fees on Ethereum can currently range from a few dollars to hundreds of dollars, depending on transaction complexity and network congestion. This makes Ethereum inaccessible for many users and developers. Dencun is expected to:

• Lower gas costs significantly, with some estimates showing a reduction of up to 90%.
• Increasing Ethereum's accessibility for everyone.
• Opening up new possibilities for applications, such as microtransactions and real-world payments.

Example

• A developer wants to build dApps that allow users to send money to each other quickly and cheaply. Currently, high gas costs make this application not feasible. With Dencun, gas costs will drop significantly, allowing developers to build these applications.
• An online store wants to accept cryptocurrency payments . Currently, high gas costs make this impractical. With Dencun, this online store will be able to accept cryptocurrency payments easily and cheaply.

Dencun's Impact on the Future of Ethereum

Dencun could have a significant impact on Ethereum's future, including:

• Improves Ethereum's scalability and efficiency, making it more competitive with other blockchains.
• Attract more users and developers to the Ethereum platform.
• Driving the growth of the blockchain industry as a whole.
• Helping Ethereum achieve its goal of becoming a global computing platform for decentralized applications.

Ethereum Price Surge

Over the past month, ETH prices have risen more than 42% to over $3000, with observers suggesting that the rise was fueled by optimism surrounding a possible spot Ethereum ETF.

However, Grayscale indicated that this price increase could also be attributed to the upcoming Dencun upgrade and the hype generated by the promised upgrade.

“We believe that recent price performance reflects the market's anticipation of this upside, as Ethereum (up 26% YTD) has outperformed the broader Smart Contract Platform Sector (up 3% YTD) since January 1” Grayscale said.

Conclusion

The Dencun upgrade is an important milestone for Ethereum. By delivering greater scalability and efficiency, Ethereum is ready to compete in the new blockchain era and reach a new level of maturity.

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How to Buy Ethereum (ETH) on Bittime

You can buy and sell  Ethereum (ETH)  in an easy and safe way via  Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

Ethereum (ETH)  is available on Bittime with  the market pair ETH/IDR . To be able to buy  ETH/IDR  at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.

Learn  the complete guide on how to buy Ethereum (ETH) on Bittime . 

Monitor price chart movements  for Ethereum (ETH) , Bitcoin (BTC) , Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime.  

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DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.