Protodanksharding will usher in much lower fees for Ethereum L2s and may allow ETH to outshine its competitors this year.

Ethereum's upcoming Dencun upgrade, slated for launch in just two days, is poised to be a pivotal event for the network, with experts dubbing it one of the most significant since the Merge. Unlike past upgrades, Dencun is expected to have minimal direct impact on Ethereum holders, as it marks a shift towards serving other blockchains directly.
At the heart of the Dencun upgrade is EIP 4844, also known as "protodanksharding," which promises to lower gas fees on Ethereum's layer two (L2) networks. This improvement will facilitate the settlement of L2 transactions on Ethereum through a new transaction type called "blobs," optimizing data storage for greater efficiency.
Networks such as Polygon, Arbitrum, and Optimism stand to benefit directly from this upgrade, particularly those processing transactions in batches known as "rollups" before finalizing them on Ethereum. Expectations include a significant reduction in costs for Polygon ZK EVM transactions, following the Feijoa upgrade, whose release date remains pending.
Furthermore, Ethereum's transition towards utilizing L2s as an execution layer signifies a broader strategic pivot within the network. This shift acknowledges the limitations of Ethereum's monolithic design and underscores the importance of scalability through layer two solutions.
While the Dencun upgrade may increase hardware requirements for Ethereum node operators, the impact on decentralization should be minimal. L2 submission fees, currently accounting for about 10% of all L1 fees, are anticipated to decline substantially post-upgrade.
Unlike previous upgrades like the Merge, Dencun does not introduce "number-go-up" technologies or new yield mechanisms for ETH. Nonetheless, analysts foresee it as a catalyst for Ethereum to outperform BTC in 2024, citing protodanksharding as a significant driver for network activity and market performance.
Recent market trends have seen Bitcoin reaching an all-time high above $72,600, with Ethereum surpassing $4,000. Both assets have witnessed impressive year-to-date gains of 63% and 71%, respectively.
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Ether is the native currency of the Ethereum blockchain and is used to compensate nodes for performing computations in the Turing-complete instruction set of the Ethereum Virtual Machine (EVM). As everyone in crypto world is waiting for Bitcoin halving that is due in April 2024 and SEC decision on spot Ethereum ETFs due in May 2024.As in crypto world news creates hypes that causes spotlighted alt to moon or plummet down to earth,same is happening with Ethereum too.Ethereum’s Dencun upgrade, is scheduled for March 13th, 2024,with every upgrade Ethereum is showing strength and scalability.This would be significant timespam for Ethereum to show it's correction although other platforms like Solana or Avax are doing well too in scalability and efficiency.Ethereum is a definite leading smart contract platform but due to increased competition there are challenges that should be overcome with corrections as always new users in the ecosystem choose faster, cheaper mediums and try to avoid high gas fees but in Ethereum case this is costly and charging about 2.3% to users in February 2024 therefore we analyse Ethereum by its slow transaction speed and high fees.Ethereum has shown excellent stability since December 2023. Its price has increased and overcome the important $3,000 level.As our team analyse, Dencun upgrade a positive and strong indication in Ethereum price growth but looks SEC decision in May with volatilety and tension in price too,So finger crossed for traders.#Write2Earn #TrendingTopic  #DencunUpgrade  #Ethereum(ETH)   #EthGasFees

The Dencun upgrade, implemented on the Ethereum blockchain in March 2024, aimed to improve scalability and reduce transaction fees for Layer 2 blockchains built on top of Ethereum. Here's how it impacts blockchains:

Impact on Layer 2 Blockchains:
Reduced Fees: Dencun introduces a new method for storing transaction data called "blobs." These blobs are temporary and store data off-chain, reducing the amount of data stored on the main Ethereum blockchain. This lower data load translates to lower fees for users interacting with Layer 2 blockchains.Increased Scalability: By taking pressure off the main Ethereum blockchain, Dencun allows Layer 2 solutions to process transactions faster and handle a higher volume. This can lead to a more efficient and scalable overall blockchain ecosystem.Boosted Adoption: Lower fees and improved scalability can attract more users and developers to Layer 2 solutions, further expanding the Ethereum network's reach.

Overall, the Dencun upgrade is a positive development for Layer 2 blockchains. It allows them to operate more efficiently, handle more transactions, and offer lower fees to users.

Here are some additional points to consider:
Limited Impact on Layer 1: While Dencun benefits Layer 2 solutions, it doesn't directly impact fees or scalability on the main Ethereum blockchain (Layer 1).Temporary Storage: Data stored in "blobs" is temporary and gets deleted after a set period (currently 18 days). This means Layer 2 solutions still rely on Layer 1 for permanent data storage.
Future Developments: Dencun is a stepping stone towards Ethereum's long-term scalability goals. Further upgrades are expected to address Layer 1 scaling challenges.

In conclusion, the Dencun upgrade marks a significant step forward for Layer 2 blockchains built on Ethereum. By reducing fees and improving scalability, it paves the way for wider adoption and a more robust blockchain ecosystem.

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In a recent update, Ethereum's core development team has confirmed that the highly-anticipated Dencun upgrade won't be happening in 2023 as initially planned. This decision comes as a result of delays in deploying the upgrade on Ethereum's testnets, including Goerli, Sepolia, and Holesky.
The concerns about the timeline for the upgrade have been growing due to the fact that the upgrade has not yet made its way to Ethereum's testnet platforms. In September, developers had estimated that if the upgrade couldn't be deployed on the testnet before the Devconnect conference in mid-November, it would likely have to be postponed to the following year.
This week, Ethereum completed its 10th private Devnet test phase. However, the results seem to have fallen short of expectations. Potuz, one of the developers, noted that "none of the networks are performing well."
Devnet 11 is on the horizon, but the transition to public testnets may continue to be delayed beyond Devconnect. Developers feel that there are still significant adjustments needed within the system before they are confident in pushing the entire client to the testnet.
The implementation of Dencun relies on various factors, including the readiness of the source code on different consensus layers, Ethereum's execution, and the readiness of client teams. All of these elements need to be thoroughly tested on public testnets, and this testing process will likely take a significant amount of time.
Dencun is a crucial upgrade for Ethereum, following the successful deployment of Shanghai/Shapella in April 2023. The name "Dencun" is a combination of "Deneb" and "Cancun." In early June, this upgrade was finalized and brings five significant changes to Ethereum:
1. EIP-4844 (Proto-Danksharding): A proposal to reduce the cost of storing transaction data.
2. EIP-4788: Improvements in cross-chain bridge design and staking pools.
3. EIP-5656: Updates to the Ethereum Virtual Machine.
4. EIP-1153: A proposal to change the data storage structure within blocks.
5. EIP-6780: Removal of code sections that allow the cancellation of smart contracts.
The Ethereum community eagerly awaits the successful deployment of the Dencun upgrade, which promises to bring significant improvements to the network. Stay tuned for more updates on this important development in the world of crypto. #Ethereum #DencunUpgrade #cryptonews

Hey everyone, excited news for Ethereum users! The Dencun upgrade is here, and it's bringing some big improvements under the hood. But don't worry, there's no need to stress about complicated changes on your end. This upgrade will happen seamlessly, so you can keep interacting with Ethereum and your favorite layer 2 networks just like you always have.
The best part? Dencun paves the way for significantly lower gas fees! Once the update is in full swing, layer 2 networks will gradually shift to using a new technology called proto-danksharding. This fancy term basically means it will be cheaper to process transactions, bringing down those pesky gas fees.
So, what does this mean for you? Smoother transactions and more affordable interactions with the Ethereum ecosystem. That's a win-win for everyone!
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