Bittime – The price of Ether (ETH) has surpassed the $4,000 mark for the first time since December 2021. This is the lead-up to a series of network upgrades collectively known as the Deneb-Cancun or Dencun upgrade.
The Dencun upgrade will be implemented on the Ethereum mainnet on March 13, 2024.
This highly anticipated Ethereum upgrade will be led by EIP-4844, or proto-danksharding. This upgrade is expected to reduce gas costs on the L2 (Layer 2) network.
This article will explain the Ethereum Dencun upgrade and its impact, with lower gas fees at Layer 2 as a key feature.
What Is the Ethereum Deneb-Cancun (Dencun) Upgrade?
The Dencun upgrade was an Ethereum upgrade that marked the start of “The Surge” era of the Ethereum roadmap. During “The Surge,” Ethereum will prioritize scalability and aim, according to Ethereum co-founder Vitalik Buterin, to reach “100,000 transactions per second and higher.”
The Dencun upgrade consists of nine Ethereum improvement proposals (EIPs), including EIP-4844 or proto-danksharding, which would introduce temporary storage space called “data blobs” for the Ethereum L2 network to use.
The extra storage space enabled by data blobs will temporarily increase the data availability capacity of the Ethereum mainnet. L2 rollups can now use this extra space to efficiently transmit their data to the mainnet, ultimately leading to reduced L2 gas costs for end users.
For this reason, Proto-danksharding is widely expected to "facilitate an ecosystem-wide move to rollups."
Check Today's Crypto Market:
When Will Ethereum Dencun Launch?
Ethereum Dencun is coming to Ethereum on Wednesday, March 13, 2024, occurring at “Beacon Slot 8626176.” If all goes well, code deployment will occur at 9.55am ET / 1.55pm GMT. You can follow the countdown here: link to countdown clock.
Dencun Ethereum EIP Explained
Let's understand the nine EIPs that will be implemented during the Ethereum Dencun upgrade, as explained by the Ethereum protocol development team.
- EIP-1153 - EIP-1153 introduced two EVM opcodes called TLOAD and TSTORE that delete themselves at the end of each transaction. Since the new opcodes are not stored in Ethereum's global state, they are expected to make more efficient use of gas fees.
- EIP-4788 - This ETH upgrade exposes the root block of the Ethereum Beacon chain to the EVM by storing it in a smart contract in the execution layer.
- EIP-4844 - Proto-danksharding will introduce temporary data blobs that rollups can use to store partial transaction data. Data blobs will temporarily not interact with the EVM allowing for lower gas fees and allowing Ethereum nodes to remain lean.
- Other EIPs are briefly explained here: link to detailed EIP explanation
Also Read How to Buy Crypto:
6 Key Benefits of the Ethereum Dencun Upgrade
The Ethereum Dencun upgrade is expected to bring several benefits to the Ethereum network and ecosystem.
In addition to addressing some common issues facing networks, these upgrades will also open up the ecosystem to new users and use cases, expanding the possibilities on the network.
Improved Scalability
The Dencun upgrade will increase the throughput of the Ethereum network. This will primarily be achieved through proto-danksharding, which will introduce temporary storage space that L2 rollups can use to achieve higher volumes of transactions per second.
Lower Gas Costs
Proto-danksharding will reduce gas costs on L2 rollups. At the time of writing, token swap fees on optimistic L2 rollups like Optimism and Arbitrum One are less than $0.90, compared to more than $16 on the Ethereum mainnet.
Meanwhile, token swap gas fees on zero knowledge (ZK) rollups like Polygon zkEVM cost around $1.6.
With proto-danksharding, gas fees on optimistic and ZK rollups will further reduce, allowing them to compete with global payment giants such as Visa and Mastercard, which are exploring blockchain and various L2s.
Enhanced Security
The Dencun upgrade will implement EIP-6780, which will weaken the SELFDESTRUCT code. This upgrade will limit smart contract termination, increasing the protection of user data and their funds.
Better Cross-Chain Communication
The Dencun upgrade will enable seamless and secure interactions between various blockchain networks via EIP-4788 as the upgrade is expected to improve cross-chain bridges and stake pools.
Better Data Storage
The changes proposed by EIP-1153 are set to optimize data storage on the Ethereum blockchain. EIP-1153 will introduce new opcodes that are not stored in Ethereum's global state that will optimize block space usage and make gas fee usage more efficient.
Preparing for Full Danksharding
Ethereum's ultimate goal for The Surge is to achieve full danksharding. This is what is expected to allow the network to process “100,000 transactions per second and higher” on Ethereum.
However, danksharding is still “a few years away” as several network improvements – including a proposer-builder split – need to be implemented first.
Meanwhile, proto-danksharding will be introduced as a stepping stone during Dencun's upgrade.
Check Crypto Prices Today:
What Experts Say About Ethereum Dencun Upgrade
Max Wadington, Fidelity Digital Asset Research Analyst, said on YouTube that there are three key points about Dencun's upgrade:
- Blobs data will be stored on the Ethereum mainnet for only 18 days, allowing for higher data availability without blocking Ethereum nodes.
- The Dencun upgrade is “unlikely” to lower gas fees on Ethereum mainnet.
- Dencun's upgrade "marks a significant shift in Ethereum's focus, from serving users directly to serving other blockchains."
Meanwhile, Ethereum developer Tim Beiko in a conversation with Consensys said that the Dencun upgrade could help decongest Ethereum mainnet.
"This (the Dencun upgrade) is a way in which we can move more and more transaction activity out of the main Ethereum network, which decontaminates it and then offers lower fees to users," Beiko said.
Conclusion
The Dencun upgrade is considered the most significant Ethereum upgrade since The Merge.
Other Ethereum upgrades have been launched including Shanghai - allowing users to unstake their staked ETH in April 2023.
Dencun's upgrade via proto-danksharding is expected to directly impact the majority of Ethereum users by lowering gas fees paid on L2.
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 the movement of Ethereum (ETH) , Bitcoin (BTC) , Solana (SOL) and other crypto charts to find out today's crypto market trends in real-time on Bittime.
Also read:
DenCun Ethereum Upgrade Guide, Follow the Steps!
Dencun: An Ethereum Lifeboat to Compete in the Sea of Blockchain
Dencun Ethereum Upgrade Potentially Reduces Ether Burn
Ethereum Dencun Upgrade: Cheap Transaction Fees Near Zero
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.
Comments
0 comments
Please sign in to leave a comment.