Bittime - In the cryptocurrency world , attention is on Ethereum and the Dencun upgrade which is just 1 day away. Among analysts, Dencun is considered one of the most important events for the Ethereum network since the Merge.
Unlike the previous upgrade, it is predicted that Dencun will not have a direct impact on ETH token holders. "This marks a significant shift in focus for Ethereum, from serving users directly to serving other blockchains directly," said Max Wadington, Fidelity Digital Asset Research Analyst.
Dencun Upgrade Introduces EIP-4844
Dencun will introduce EIP-4844, otherwise known as “proto-danksharding”. This EIP aims to deliver much lower gas fees on Ethereum's layer-2 (L2) network .
EIP-4844 allows L2 transactions to be completed on Ethereum via a new type of transaction called “blobs”. Blobs function to store large amounts of data temporarily in a way that is more gas efficient than before.
Thus, networks like Polygon , Arbitrum, and Optimism will be direct beneficiaries of this upgrade. All three networks process transactions in batches called “rollups” before settling them to Ethereum.
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David Silverman's statement regarding Dencun Upgrade
"We expect quite drastic cost reductions for the Polygon ZK EVM," David Silverman, Vice President of Product at Polygon Labs, told Decrypt. This statement follows the Feijoa upgrade from Polygon which does not yet have a target date.
Silverman also predicts a slight decrease in proof-of-stake fees , thanks to Ethereum L1 block space becoming slightly cheaper. Overall, Silverman believes the upgrade represents a broader shift within Ethereum towards using L2 as the execution layer.
"I think there's confidence in Ethereum as the core settlement layer... to deliver true scaling, we know a monolithic design won't work," Silverman added. "I think Ethereum is aware of that and is leaning into that narrative."
Ethereum Price ETH/IDR Today
Source: Bittime.com
On March 12 2024, the price of ETH (Ethereum) was at IDR 63,455,639 per coin, an increase of 4% in 24 hours.
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The Future of Ethereum (ETH) After Dencun Upgrade
In its research report, Fidelity stated that the Dencun upgrade will increase the hardware requirements for Ethereum runner nodes with the addition of 100 gigabytes of SSD storage and 64 kilobytes per second of bandwidth. This increase is considered marginal compared to current requirements of 2 terabytes and 25 megabytes per second. This means that the upgrade should not have a negative impact on Ethereum's ability to remain decentralized.
Currently, L2 shipping costs account for about 10% of all L1 costs. This figure is expected to decrease significantly once the upgrade is activated.
Unlike Merge, Dencun does not feature “price increase” technologies such as “triple halving” or new yield mechanisms for ETH as a currency. However, in a research report published by JPMorgan in December, analysts predicted that the upgrade could be a catalyst for ETH to outperform BTC in 2024.
"We believe that next year Ethereum will re-assert itself and reclaim market share in the crypto ecosystem," the bank's analysts wrote, citing proto-danksharding as a key catalyst. "We believe that this upgrade will likely prove to be a bigger step towards increasing Ethereum network activity, thereby helping Ethereum to outperform its competitors."
Conclusion
Bitcoin recently hit an all-time high above $72,600, while Ethereum broke through the $4,000 mark. Since the start of the year, both assets have increased by 63% and 71%, respectively.
With the Dencun upgrade on the horizon, Ethereum appears to be preparing to enter a new era focused on the scalability and enablement of Layer-2 solutions. This upgrade promises lower transaction fees, increased adoption, and the potential for Ethereum to once again lead innovation in the blockchain world.
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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 solicitation 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.
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