in brief
- The proto-dank sharding feature of the Dencun upgrade has the potential to significantly reduce Ethereum transaction costs.
- The successful testing enhances the likelihood of a mainnet launch in February or March.
- Dencun has the potential to attract institutional investors and enhance scalability.
Recent testing of the Dencun upgrade has produced favorable outcomes, clearing the path for Ethereum developers to schedule a mainnet launch. The upgrade is designed to improve scalability and decrease transaction costs on layer-2s by implementing proto-dank sharding, an innovative process.
The successful testing instills confidence in the Dencun upgrade.
During the All Core Developer Execution Call (ACDE) 180, Ethereum core developer Tim Beiko shared on Reddit that the testing for the upcoming Dencun upgrade had progressed smoothly. Developers discussed the positive outcomes, including the success of the Sepolia fork and the upcoming Holesky test net upgrade scheduled for February 7
.The Dencun upgrade, detailed by the Ethereum Foundation, brings significant changes to Ethereum’s consensus and execution layers, following the Shapella upgrade in April 2023. The aim is to allow unstaking of Ether and attract more institutional investors. Ethereum developers aim to finalize the Dencun upgrade’s mainnet launch date during the upcoming All Core Developers Call. Christine Kim of Galaxy Digital estimates an 80% chance of Dencun’s mainnet activation by March’s end, with a 40% chance of going live by February’s end.
Proto-Danksharding’s contribution to reducing transaction costs.
The Dencun upgrade, which was activated on the Goerli testnet on January 17, implements various Ethereum Improvement Proposals (EIPs), such as EIP-4844, which enables proto-dank sharding. This is expected to notably reduce transaction fees on Ethereum layer-2 solutions.
The aim of proto-danksharding is to decrease the expenses associated with rollups, which aggregate transactions and data off-chain before providing computational evidence to the Ethereum blockchain. This is accomplished by introducing a new compartmentalized data container called “blobs,” which enhances the cost-effectiveness of data availability.
Market forecast and conjecture
Amidst the Ethereum community’s anticipation of the mainnet launch date announcement for Dencun, speculations about its activation timeline are rampant. Adding to this anticipation is Christine Kim’s assessment, which suggests an 80% chance of activation by the end of March. Nevertheless, the prospect of Dencun going live by the end of February, while recognized, is deemed less likely, with a 40% likelihood.
