Brief content
Ethereum's "Cancun" update aims to improve scalability, security, and efficiency on the Ethereum network by introducing the concept of prototanksharding.
Danksharding represents the final phase of the Ethereum 2.0 (Serenity) update, which improves data management and transaction processing.
Ethereum's "Cancun" update promises faster transaction processing times, lower transaction costs, and optimized data management. Potential risks include impact on existing smart contracts and integration of new data storage methods.
The Ethereum "Cancun" update was originally planned to launch in October 2023, but was later pushed back to the first half of 2024.
Introduction
Ethereum's transition to Proof of Stake (PoS) and the introduction of sharding are key components of the Ethereum 2.0 update. PoS reduces energy consumption by replacing miners with validators who are selected to create new blocks based on their amount of ETH staking.
At the same time, sharding increases the speed of transactions by dividing the Ethereum network into smaller parts (shards), each of which is able to independently process transactions and smart contracts. The transition from PoW to PoS ensures secure and efficient sharding by randomly assigning validators to specific shards, preventing manipulation and increasing performance.
Ethereum's "Cancun" update showcases important advancements in the Ethereum blockchain aimed at improving scalability, security, and overall network efficiency. This update introduces the concept of prototanksharding, which is an important step towards optimizing data management and increasing the availability of transactions in the Ethereum ecosystem.
Using innovative data storage methods, Ethereum's "Cancun" update is poised to revolutionize the way transactions are processed on the network, paving the way for a more accessible and user-friendly experience.
Ethereum Update Information "Cancun"
The Ethereum "Cancun" update (also known as the "Cancun-Deneb" update) is a coordinated effort by Ethereum to strengthen its infrastructure and address outstanding issues since the "Shanghai" update.
The "Cancun" update is based on four Ethereum Improvement Proposals (EIPs): EIP-4844, EIP-1153, EIP-4788, and EIP-6780. Together, the implementation of these EIPs will provide many benefits, including improved scalability, improved data storage and availability, and reduced transaction costs.
With a primary focus on execution layer optimization (layer 1), the "Cancun" update prepares the network for the future implementation of full data sharding, a key component of Ethereum's long-term development strategy.
Sharding refers to dividing a blockchain database into smaller pieces called shards to improve efficiency, and the "Cancun" update introduces a special type of sharding known as proto-dank sharding (discussed below).
The goal of the "Cancun" update is to increase the number of transactions per second (TPS), which is in line with Ethereum's "Surge" development plan to increase performance to 100,000+ TPS.
The "Cancun" update - along with the subsequent "Deneb" update - is an important milestone on Ethereum's path to establishing itself as the leading decentralized financial platform.
Danksharding and protodanksharding
Danksharding and protodanksharding are different iterations of sharding technology developed for Ethereum. Named after Ethereum researcher Dankrad Feist, dunksharding is a type of sharding that serves as the final phase of the Ethereum 2.0 (Serenity) upgrade. It focuses on optimizing the availability of data for rollups on the Ethereum network.
From a technical point of view, dunksharding is a scheme that introduces the concept of a unified market commission. While traditional sharding has different blocks and block initiators for each shard, in dunksharding there is only one block initiator. In short, dunksharding can improve transaction processing and optimize data storage by simplifying the sharding architecture and prioritizing data management.
In the context of the upcoming update, protodanksharding (introduced in EIP-4844) serves as a prototype for danksharding. This is a temporary solution that can significantly reduce the gas fee associated with rollups until the dunksharding framework is fully implemented.
Transactions with binary large objects
Binary bulk transactions were introduced along with prototanksharding (EIP-4844) to reduce gas fees. Binary bulk transactions allow you to temporarily store q receive off-chain data, which means that data can be added to Ethereum transactions in a more cost-effective way.
Benefits of the Ethereum "Cancun" Update
As we have already mentioned, Ethereum's "Cancun" update promises a number of benefits, including faster transaction processing, lower transaction costs, optimized data management, and improved cross-chain interoperability. By introducing the concept of binary large object transactions, the update aims to simplify data processing and improve overall network efficiency.
1. Better scalability: Prototank sharding offers temporary capacity for data storage, allowing layer 2 rolls (and the network in general) to process more transactions per second.
2. Lower transaction costs: Binary bulk transactions allow data to be added to Ethereum transactions in a more cost-effective way.
3. Optimized data management: EIP-1153 optimizes block space and reduces network data storage costs.
4. Better cross-chain interoperability: EIP-4788 aims to improve interoperability between different blockchain networks by opening the Beacon Chain to execution levels.
5. Improved security: EIP-6780 will reduce the risk of smart contract termination by disabling the SELFDESTRUCT code, increasing the security of users' data and funds.
Potential Risks of Ethereum "Cancun" Update
There may be risks associated with the potential impact of the update on existing smart contracts and the subtleties of integrating new data storage methods. They require thorough testing and consideration during the implementation phase to ensure a smooth transition for all stakeholders.
Expected Ethereum "Cancun" Launch Date
Although a specific date for the Ethereum "Cancun-Deneb" upgrade has not been announced, it is expected to take place in the first half of 2024. As the network undergoes extensive testing and optimization, the Ethereum community eagerly awaits the official launch, anticipating dramatic changes in the way Ethereum processes transactions and manages data in its ecosystem.
Results
Ethereum's "Cancun-Deneb" (Dencun) update marks a significant step forward in Ethereum's quest to improve scalability, efficiency, and user experience. Introducing prototanksharding and laying the groundwork for future advancements in Ethereum's "Cancun" update is likely to advance the field of decentralized finance and blockchain technology.
Related articles
What is Ethereum 2.0 and why is it important?
Blockchain Layer 1 and Layer 2 Scalability Solutions
Blockchain scalability – sidechains and payment channels
Disclaimer: This content is provided to you "as is" for general information and educational purposes only, without any representations or warranties. It should not be considered as financial, legal or other professional advice and is not intended to recommend the purchase of a particular product or service. You should seek advice from appropriate professional advisers. If the article is written by a third-party author, please note that the opinions expressed are those of the third-party author and do not necessarily reflect the opinion of Binance Academy. For more information, please see our disclaimer. Digital asset prices can be volatile. The value of your investment may fall as well as rise, and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not responsible for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, please see our Terms of Use and Risk Warning.
