Ethereum’s much-anticipated Dencun upgrade is set to revolutionize the blockchain industry. Scheduled for March 13, this upgrade introduces a series of improvements to enhance efficiency and scalability across the board.
Central to the Dencun upgrade is implementing nine Ethereum Improvement Proposals (EIPs), with EIP-4844, or proto-danksharding, stealing the spotlight.
Ethereum Transaction Fees Will Drop Drastically
The innovative proto-danksharding proposal introduces blob-carrying transactions. This novel approach drastically reduces data storage on the consensus layer by storing data off-chain and referencing it through a hash. It simplifies transaction verification and significantly lowers the data storage footprint, as blobs are not permanent and become inaccessible after about three weeks.
The implications of these enhancements are profound, particularly for Ethereum’s Layer 2 (L2) solutions. Indeed, the upgrade is expected to slash transaction fees by at least 10 times. Subsequently, marking a seismic shift towards making Ethereum more scalable and cost-effective.
This fee reduction will decrease transaction costs to as low as $0.02. This is a stark contrast to the current average of $0.23. Such a development may accelerate the adoption of Ethereum’s roll-up roadmap. Indeed, lower costs will make L2 solutions far more attractive and competitive.
“This long-awaited upgrade is forecast to cut costs for Ethereum’s L2s by at least 10x, making Ethereum more scalable and efficient. By leveraging rollups and temporary blob storage, the developers aim to increase throughput and reduce fees for users,” Lucas Outumuro, Head of Research at IntoTheBlock, said.
Read more: A Beginner’s Guide to Layer-2 Scaling Soluti
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Author: Bary Rahma
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