Ethereum, a leading blockchain platform, is poised to take the crypto industry by storm with its latest upgrade, Dencun, which is expected to make Layer 2 (L2) transactions extremely cheap and virtually fee-free. Of course, this benefits many parties, including the crypto community who often transact on the Ethereum network.
The upgrade is a milestone for Ethereum since the implementation of The Merge in September 2022, which has changed the network's consensus mechanism from Proof-of-Work (PoW) to Proof-of-Stake (PoS). This switch from PoW to PoS strengthens Ethereum's position to use an environmentally friendly consensus model and move away from the mining mechanism to a token locking model (staking).
What Is Dencun Ethereum Upgrade?
The Dencun Ethereum upgrade is a technical upgrade that aims to improve the scalability and efficiency of the Ethereum network, primarily through reduced transaction fees on Layer 2 (L2) solutions.
Here are some things you must know about the Dencun Ethereum upgrade that will be implemented.
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Ethereum Transaction Fees Drastically Reduced
Dencun is designed to reduce L2 transaction fees to almost zero, encouraging almost all activity on Ethereum to switch to this network. With lower transaction fees, new projects and protocols are expected to emerge, encouraging usage by bearing gas fees that are usually charged to users.
Proto-Danksharding: Data Storage Innovation
The Dencun upgrade will introduce Proto-Danksharding, a more efficient and economical method of temporary data storage. Proto-Danksharding, first theorized by Vitalik Buterin in 2019, will change the way Ethereum stores data, from direct storage at the main execution layer to cheaper, ephemeral "blobs" of data.
The Origin and Future of Proto-Danksharding
Proto-Danksharding, inspired by the names of Ethereum researchers Dankrad Feist and Proto Lambda, is an important step towards full implementation of Danksharding. This represents a significant change from Ethereum's original plan for scaling, chosen for its ease of implementation.
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KZG Ceremony: Ethereum Community Unites
In 2022, the Ethereum community is carrying out the world's largest "Trusted Setup", known as the KZG Ceremony. The ceremony involves tens of thousands of people collectively generating the secret random data strings required for Proto-Danksharding functions.
Conclusion
With the Dencun upgrade, Ethereum not only improves the scalability and efficiency of its network, but also opens up new opportunities for developers and users around the world. It is expected that this upgrade will lower transaction fees across many L2 networks built on the Ethereum blockchain, drive mass adoption and increase the utility of Ethereum as a global settlement layer.
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How to Buy Ethereum (ETH) on Bittime
You can buy and sell Ethereum (ETH) in an easy and secure way through Bittime. Bittime is one of the best crypto applications in Indonesia that has been officially registered by Bappebti.
Ethereum (ETH) is available on Bittime with the ETH/IDR market pair. To be able to buy ETH IDR on Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have enough balance by depositing some funds into the wallet. For your information, the minimum asset purchase at Bittime is Rp10,000. After that, then you can make a crypto asset purchase in the application.
Learn the complete guide on how to buy Ethereum (ETH) on Bittime.
Monitor the price chart movements of Ethereum (ETH), Bitcoin (BTC), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
What Is Ethereum (ETH) 2.0 and How is It Different from Ethereum
Ethereum Dencun Launches on Holesky Testnet
5 Best Token Rollups to Buy Before Dencun Ethereum Upgrade
Danksharding & Proto-Danksharding: Ethereum Scalability Solutions
DISCLAIMER: This article is informational in nature and does not constitute an offer or solicitation to sell and buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices may change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.
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