The Ethereum universe is about to experience a revolution with the Dencun upgrade, promising to dramatically reduce transaction fees and speed up processes on layer 2 rollups. This event, which took place on Goerli testnets in January 2024, marks a significant step forward in the Ethereum ecosystem.
Dencun and EIPs: A new era for Ethereum
The implementation of Dencun on Goerli marked the introduction of several Ethereum Improvement Proposals (EIPs), with EIP-4844 as the figurehead. This proposal introduces the concept of proto-danksharding, an innovation that aims to optimise the efficiency of storage on the blockchain. By compressing the data in transactions, this method significantly reduces costs, by around 80 to 90%. This represents a major development for Layer 2 solutions. By offering a substantial reduction in transaction costs and increased efficiency.
Impact of Dencun on Rollups and Scalability
With Dencun, transaction costs for rollups could be reduced by up to ten times. This is a change that radically transforms their economic viability and scalability potential. This drop in cost is a key factor in the widespread adoption of Ethereum L2 solutions, as it paves the way for more complex and varied applications on the blockchain. By making transactions more accessible and cost-effective, Dencun is removing an important barrier to innovation and growth in the Ethereum ecosystem.
Towards a global upgrade and faster transactions
Following conclusive tests on Goerli, the Sepolia and Holesky testnets are the next to receive the Dencun upgrade. This test phase is crucial to guarantee the stability and effectiveness of the upgrade before it is deployed on the Ethereum mainnet. The ultimate goal is to solve scalability problems directly on the Ethereum mainnet. All the while delivering an improved user experience with faster transactions and reduced fees. Once deployed, this upgrade could mark a turning point in the history of Ethereum. By making it more attractive to developers and users alike.
