Dencun Upgrade Activated on Ethereum
The Ethereum Dencun upgrade is live, enhancing data storage/processing and boosting scalability while slashing fees altcoinsignal_. The upgrade's proto-danksharding (EIP-4844) introduces "blobs" for Layer 2 rollups, potentially driving new dApp deployments and user growth "The Dencun Upgrade Explained".
The Dencun upgrade, activated on March 13, 2024, is considered Ethereum's most significant event since the Merge in 2022. It combines changes to both the consensus (Deneb) and execution (Cancun) layers, introducing nine Ethereum Improvement Proposals (EIPs). The primary goal is to enhance Ethereum's scalability and efficiency, reducing transaction fees for Layer 2 solutions while improving overall network performance. EIP-4844, also known as proto-danksharding, is the most significant component of Dencun. It introduces "blobs," a new type of transaction that reduces the cost of rollup transactions by providing temporary data storage on the consensus layer. These blobs, approximately 125kB in size, are cheaper to store and transmit compared to traditional calldata, and are purged from the chain after a set period. This separation creates a new "data fee market," potentially reducing rollup transaction fees by up to 98%. The upgrade also implements a fixed limit for new validators, managing the validator set's growth and maintaining efficient node communication. This could influence Ethereum's monetary policy by slowing the rate of new ETH issuance. Looking ahead, Ethereum's roadmap includes further expansion of blob parameters for rollup scalability, and a shift towards Layer 1 zkEVM. Ethereum Foundation researcher Justin Drake shared a roadmap draft outlining seven protocol forks by 2029, aiming for 10,000 TPS via zkEVM. The full implementation of Layer 1 zkEVM is expected by 2028-2029.
