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Here's everything you need to know as Ethereum's Dencun update approaches.

March 04, 2024
4 Min Reads

A significant update called "Dencun," which combines the two minor updates Cancun and Deneb, is scheduled to be released for the Ethereum (ETH) network. The update is anticipated to improve Ethereum's scalability, efficiency, and security while drastically lowering layer 2 (L2) transaction fees.

The Ethereum Foundation Blog announced on February 27 that the upgrade has been successfully triggered on all test networks, including Goerli, Sepolia, and Holešky. The upgrade is slated for March 13.


What is the Dencun update for Ethereum, then? Discover why the Ethereum community is so excited about it by reading on.

The journey of Ethereum and its next major move

The introduction of the proof-of-stake (PoS) consensus mechanism and the ability to stake ETH by Ethereum in December 2020 marked a significant shift away from the previous proof-of-work (PoW) consensus technique.

By September 2022, Ethereum had completed "The Merge," connecting the Beacon Chain to the main network and fully converting to proof-of-stake. The Shanghai update made it possible for users to withdraw staked Ethereum in April 2023, which simplified stake management for validators—those who assist in verifying transactions.


A key component of the ETH Dencun update, Ethereum introduced Holešky, a new testing network with 1.4 million validators, on September 28, 2023.

Many have inquired as to what Ethereum's Dencun upgrade's primary objective is. Recall that rather than immediately addressing the scalability issue, the earlier Ethereum network enhancements were more about setting the foundation for a more secure and long-lasting Ethereum.

The Shanghai update enhanced the way users could stake their ETH, while the Merge focused on switching to a more environmentally friendly and effective transaction verification system. Many regard the ETH Dencun update—a combination of two significant improvements—as the final step in transforming Ethereum into a quicker, more secure, and more scalable network, building on the foundation laid by earlier updates.

Cancun, the first phase of the upgrade, focuses on the "execution layer," or the handling and processing of transactions. The "consensus layer," or how network users agree on the current state of the blockchain, is the focus of the second section, Deneb.

Improvements to make Ethereum better

Ethereum's infrastructure is strengthened by a number of technical advancements brought about by the Dencun update. For example, it presents methods for more efficient data management and intelligent contract security, along with adjustments that should help Ethereum function seamlessly and affordably for its users.

Additionally, it seeks to enhance the staker experience by making it simpler and more advantageous for consumers to contribute to network security.

Initial Danksharding

Proto-danksharding, which was made possible by an Ethereum Improvement Proposal (EIP) called EIP-4844, is one of Dencun's standout features. Put more simply, this functionality allows Ethereum to scale more effectively by effectively handling massive amounts of data.

It makes the process more efficient and less expensive by using a technique that stores transaction data temporarily.


Conventionally, all transaction information is stored indefinitely on the blockchain. But this new method offers a way to add big data files (called blobs) into transactions without having to store them indefinitely.

Advocates assert that it will expedite and reduce the cost of transaction processing, particularly for rollups. Rollups combine multiple transactions into a single one, which lowers the effort and gas costs associated with logging them on the Ethereum network.

Rollups are already a step toward more effectively handling transactions, but they can yet be improved. Up until recently, the blockchain's permanent storage of the data gathered by rollups required room and might have slowed down operations.

A method for temporarily storing this data and deleting it after a predetermined amount of time is suggested by proto-danksharding. To ensure that the integrity of the transactions remains intact even after the deletion of the comprehensive data, a summary, also known as a commitment, of the data is created.

Furthermore, by using this method, data is only required to be temporarily stored, thereby minimizing clutter and preserving the speed and effectiveness of the Ethereum network. To avoid an overabundance of unneeded information, the data may be temporarily stored for a few months before being permanently removed.

enhanced performance and security

A number of EIPs are introduced in Ethereum's most recent upgrade with the goal of enhancing network efficiency and security.

One noteworthy innovation is EIP-4788, which improves communication inside Ethereum, especially between the consensus and execution layers. Previously, these levels functioned independently of one another, guaranteeing that each block of data in one layer had a corresponding block in the other.

But it can be difficult to get these layers to communicate with one another; in certain cases, additional assistance from outside services may even be required.

By directly inserting a summary from the consensus layer into the current block of data in the execution layer, the new update streamlines this procedure. By serving as a bridge and providing direct access to the consensus layer's data without the need for an intermediary, this summary increases the system's credibility.

Moreover, this update facilitates Ethereum applications by storing a record of these summaries in a smart contract, which simplifies monitoring the consensus layer's performance.


 

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Comments 1

Gianni - Pinax

6 months ago

With the Dencun upgrade successfully implemented, Ethereum has taken significant strides towards improving scalability and reducing transaction fees, particularly through the introduction of proto-danksharding with EIP-4844. This update builds on the foundation set by previous upgrades, aiming for a more efficient, secure, and scalable Ethereum network. We at Pinax were involved in this pivotal development, and are curious about your views. Has the Dencun upgrade met your expectations in terms of enhancing Ethereum's performance and security? Your feedback is valuable to us! - The Pinax Team

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