Sooo, something new & exciting for all the Ethereumheads!
Ethereum developers have finalized the set of changes for the upcoming network upgrade known as "Dencun."
Alright. What’s that?
The upcoming upgrade, set to occur later this year, introduces five Ethereum Improvement Proposals (EIPs) aimed at expanding data storage capacity and reducing fees.
Most essential aspect of this upgrade is known as EIP-4844.
Popularly referred to as proto-danksharding, this might be a real game-changer.
It will enhance blockchain scalability by creating additional room for data "blobs."
Consequently, this expansion is expected to result in reduced gas fees for layer 2 rollups.
Well, doesn’t it feel nice to, at least, read that the gas fees are not going to keep on rising… forever?
While an exact date for the hard fork has not been specified, it is anticipated to be implemented before the conclusion of 2023.
The upgrade encompasses simultaneous enhancements occurring on both the execution layer, where the protocol rules are located, and the consensus layer, responsible for validating blocks.
The execution layer upgrade, called "Cancun," will take place alongside the consensus layer upgrade, known as "Deneb." The term "Dencun" is a combination of the two upgrade names, signifying their simultaneous nature.
Well, you gotta give it to the Ethereum team, they do have a way with naming things.
BUT. There’s one ‘but.’
In general, we won't be expecting low fees on the main network. Which… sucks.
TL;DR: Ethereum's upcoming "Dencun," with a focus on expanding data storage and reducing fees is expected to be activated later this year. The significant feature, EIP-4844 (proto-danksharding), aims to enhance scalability and decrease gas fees for layer 2 rollups. However, it's important to note that these improvements may not lead to consistently low fees on the main network.
