The arrival of the Dencun update is a real revolution for Ethereum, promising drastically reduced transaction costs. Here is a five-point overview to understand the issues and impacts of this update, which will be deployed shortly, the foundation’s YouTube channel having already started live:
The introduction of Proto-Danksharding
Everybody talks about it. Proto-Danksharding, the central element of Dencun, offers a new data storage method. This revolutionary approach significantly reduces the cost and complexity of storing data on Ethereum.
By adopting a temporary storage strategy for “blobs“, Ethereum paves the way for faster and cheaper transactions. We’ll explain it to you.
Proto-Danksharding: L2 transactions at almost zero cost
Thanks to Proto-Danksharding, the Dencun update will transform transactions on L2 networks, by enormously reducing transaction costs. By storing data in temporary blocks (blobs), Ethereum unload your networkthus speeding up transactions and reducing their costs.
Using Uniswap, sending ETH or minting an NFT on Optimism will cost less than the price of a stamp. It’s a revolution that gives us a glimpse of a future of fluid and accessible interactions.
What does this mean in practice? Here are some examples :
- Uniswap on Base: If today a swap costs around $0.58 in fees, tomorrow it will only cost $0.01.
- Send ETH on Mode: Currently at $0.14, the fee will drop to $0.002 after the update.
- Mint an NFT on Optimism: Costing $0.20 now, it will be just $0.01 tomorrow.
Dencun, a major update for Ethereum
The Dencun update looks like the most important since The Mergemarking a turning point in Ethereum’s evolution towards greater efficiency and scalability.
By aiming to support hundreds of rollups and process millions of transactions per secondEthereum is preparing for a major transformation of its ecosystem.
A unique etymology
The choice of the name “Proto-Danksharding” pays tribute to the researchers Dankrad Feist And Proto Lambda, who proposed this change. Even though the word “sharding” is used, neither Danksharding nor Proto-Danksharding cuts a database into small pieces as is usually done in computing, what was the original plan to evolve Ethereum. A little wink?
Price increase?
The question everyone is asking: will the price of ETH soar following this upgrade? And rightly so, network improvements often have a major impact on investor perceptions, and therefore, prices.
Here are some things to consider:
- Upgrades that improve the performance of a blockchain and reduce costs for users tend to strengthen investor confidence. This could lead to an increase in demand for ETH, which, as you will have understood, could push the price upwards.
- The community perceives Dencun as an important step towards achieving Ethereum’s long-term goalsthis could also be reflected in the price of ETH.
- During the testing phases, the update worked perfectly. It will still be necessary to see if everything is going well Today.
- Finally, this update is important for developers. It offers unprecedented opportunities to innovate and build on the network. Part of the update’s success is therefore in their hands.
The Dencun update is a giant step forward for Ethereum, promising to make the blockchain more affordable, faster, and more scalable.
Source: CoinDesk
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