Today, March 13, at approximately 16:55 Moscow time, a large-scale update of EIP-4844 will take place in the Ethereum blockchain, under the working name Dencun. The update will speed up the operation of second-level networks, such as Arbitrum or Optimism, Polygon or Base, and reduce commissions for them.
Today, the Ethereum blockchain is limited by low throughput and high costs for users – the average transaction fee is $2.3, and this is significantly more expensive than other networks, which can trigger an exodus of users. Transactions containing binary large objects (BLOBs), which include only a hash reference, will help reduce fees – unlike blocks, they are not always stored on the blockchain, but are only available for a short period of time, and their space is cheaper than block space. Transactions will carry these objects attached to blocks, which will allow increasing the volume of transmitted information while maintaining speed.
There is no exact information yet on how Dencun will reduce transaction fees for second-level Ethereum network users – some experts say 10-20 times, while others expect a reduction of up to 100 times. There is also an opinion that commissions will eventually increase anyway, but no time frame has been given. An increase in the number of processed transactions per second will help to expand the deployment of artificial intelligence technologies in games and services on the blockchain; in the field of decentralized finance, it will also be possible to implement complex AI-based strategies.
With the Dencun update on the Ethereum blockchain, the number of second-layer networks will likely increase at minimal cost, meaning the number of users in the ecosystem will increase. As a result, Ethereum in 2024 will have a chance to outpace Bitcoin and other cryptocurrencies in growth rates, as well as increase its share in the digital asset market.
If you notice an error, select it with the mouse and press CTRL+ENTER.