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Following The Merge update, which transitioned from Proof of Work (PoW) to Proof of Stake Blockchain, Ethereum, known as Dencun and featuring a new capability called “proto-danksharding,” is on the verge of an important update that it is preparing to launch on its network. In this article, we will try to answer many questions such as what is the Ethereum Dencun update, when will it arrive, and what are the potential effects on the Ethereum network’s transaction capacity and cost efficiency.
What is the Ethereum Dencun Update, and What Are Its Features?
Having gone through three challenging testnet phases during January and February, the Dencun update represents a significant component of Ethereum’s comprehensive strategy to support scalability and reduce transaction costs for its user base. The Ethereum Blockchain is preparing for the Dencun update expected to take place next week, which will bring many significant improvements to the Blockchain network.
Dencun update’s centerpiece is a groundbreaking concept designed to reduce transaction costs for Layer 2 networks and data availability costs, known as proto-danksharding. The update will effectively address fundamental scalability issues with proto-danksharding. It will pave the way for the ultimate integration of danksharding, a feature ready to further extend the benefits of proto-danksharding and strengthen Ethereum’s infrastructure.
Danksharding, when fully implemented into the Ethereum Blockchain, will achieve a significant increase in the network’s transaction processing capacity, potentially enabling the network to handle over 100,000 transactions per second. Such a tremendous development will support Ethereum’s growth in hosting decentralized applications (dapps) and propel the network towards unprecedented scalability.
The Dencun update brings various technical innovations, particularly the introduction of ‘blobs’ aimed at reducing costs related to Ethereum Blockchain rollups by compressing transaction data off-chain. These blobs are crucial for temporarily storing data important for short-term transaction verification and facilitating efficient data processing through cryptographic commitments.
The update is also expected to have a profound impact on the value of Ethereum’s native asset, ETH. The enhancement of network features and the introduction of new features are anticipated to influence investor perception and market sentiment, supporting the price. With the successful implementation of the update, an increase in demand for ETH and upward price movement is expected as more developers and users turn to the Ethereum ecosystem.
When Will the Ethereum Dencun Update Arrive?
After rigorous development stages and activations in various testnets, the Ethereum Foundation has signaled readiness to proceed with the Dencun update. The mainnet launch of the update is scheduled for approximately 16:55 local time on March 13th.
The update will reshape and advance Ethereum’s operational outlook in many respects, both mentioned and unmentioned above. Therefore, the Dencun process is being closely monitored by ETH investors and general market participants.
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