Introduction to Dencun: The Highly Anticipated Ethereum Upgrade
CoinEx provides an overview of the upcoming major Ethereum upgrade, Dencun, which is set to be activated on the mainnet in 2024. This upgrade aims to address Ethereum’s scalability concerns and reduce transaction costs for layer-2 solutions. It’s important to note that the content represents the opinions of the writers and is not endorsed by U.Today.
Exploring the Core Elements of Dencun
CoinEx dives into EIP-4844, also known as Proto-Danksharding, which serves as the main feature of Dencun. Dencun introduces a new data structure called a blob to store transaction data between layer 1 mainnet and layer 2 networks. Ethereum will implement the KZG Polynomial Commitment to ensure the security and immutability of this new mechanism. The activation of Dencun’s new scheme is expected to improve the speed and cost-effectiveness of layer-2 transactions.
Additional EIPs in Dencun and Their Potential Effects
Aside from the core EIP-4844, the Dencun upgrade also includes EIP-1153, EIP-4788, EIP-5656, and EIP-6780. EIP-1153, or Transient Storage Opcodes, aims to reduce gas overhead for on-chain users and developers. EIP-4788 enhances EVM-compatibility of Layer 2 blockchains by placing a Beacon Chain block root in every execution block header. EIP-5656, or MCOPY Opcodes, reduces gas costs for on-chain users and various types of decentralized applications (dApps).
How Dencun Can Transform Ethereum’s L1 and L2
The key feature of Dencun, EIP-4844, is expected to boost layer-2 throughput and reduce transaction fees, making Ethereum-based layer 2s more competitive. CoinEx experts believe that dApps in the derivatives, LSDs, staking apps, and bridges categories will benefit the most from the Dencun upgrade.
About CoinEx: A Global Cryptocurrency Exchange
CoinEx is a global cryptocurrency exchange established in 2017. The platform aims to simplify trading for users by offering services such as spot and margin trading, futures, swaps, AMM, and financial management. CoinEx prioritizes user satisfaction and provides easy-to-use products to facilitate access to the cryptocurrency world. The exchange currently serves over 5 million users across 200+ countries and regions.
Analyst comment
This news can be considered as positive. The upcoming Ethereum upgrade, Dencun, aims to address scalability concerns and reduce transaction costs for layer-2 solutions. The implementation of key Ethereum Improvement Proposals (EIPs) is expected to improve the speed and cost-effectiveness of layer-2 transactions. This upgrade could make Ethereum-based layer 2s more competitive and benefit various categories of dApps. Overall, the market is likely to respond positively to these developments, with increased interest and adoption of Ethereum and its layer-2 solutions.
