Dencun Successfully Deployed on Ethereum Mainnet
The Ethereum ecosystem has reached a new milestone with the deployment of the highly anticipated Dencun upgrade on layer 1. This upgrade introduces the concept of ‘blobs’ that significantly reduces transaction costs for layer 2 solutions, making the ecosystem more accessible to investors.
The Dencun upgrade does the bare minimum to expand the data usable by rollups on Ethereum, which should reduce transaction costs in these L2 solutions, according to developers.
By leveraging EIP-4844, or proto-danksharding, Ethereum aims to improve data availability, making information more accessible and easily manageable by the network.
This is a giant step towards transforming Ethereum into a scalable settlement layer. However, these fee reductions will not benefit users on the Ethereum main layer, pushing significant interest towards layer 2 technologies such as Base, Optimism, Arbitrum One, zkSync, and Starknet. Users who want to take advantage of Dencun’s benefits will have to go through these layer 2s.
Fee Reductions Not Yet Active on Layer 2
Currently, gas fees for transactions on Ethereum remain relatively high. At the time of writing, these fees exceed 65 gwei, resulting in an average cost of around $80 per transaction, a significant amount for many network participants.
But don’t worry, fee reductions on different layer 2s will be active in the coming days.
