On January 17, the Dencun upgrade was activated on the Goerli testnet, marking a significant step towards the Ethereum mainnet hard fork implementation. This update introduces several technical changes necessary for transitioning to Danksharding and enhancing the blockchain's throughput.
Primarily associated with EIP-4844 or proto-Danksharding, Dencun also integrates seven other Ethereum Improvement Proposals (EIPs), impacting various aspects of the blockchain's functionality.
Despite increasing competition, the launch of the Dencun upgrade is poised to mature Ethereum, reducing transaction fees and enhancing network scalability, as indicated in the Grayscale Research report.
Analysts believe the protocol is well-positioned to leverage the benefits of the update, making it more modular alongside other factors.
In 2023, Ethereum, the second-largest cryptocurrency by market capitalization, exhibited lower performance compared to Solana and Avalanche, attributed to its "adolescent phase," according to Grayscale. This phase was characterized by slow transaction speeds and high costs for users, issues Dencun aims to address by expanding the network's modular structure and reducing gas fees.
Grayscale acknowledges Ethereum's potential as the "safest, most reliable, and largest-cap smart contract platform," suggesting that Ethereum's security-as-a-service model could significantly enhance the ecosystem by extending solutions to additional networks through bridges or oracles.
Researchers note an 83% increase in staked ETH in 2023, boosting the blockchain's security budget to $82 billion.
The Dencun mainnet launch is scheduled for March 13, with EIP-4844, including the Proto-Danksharding option, being a key component.
Recall that on February 7, the Ethereum team successfully implemented the Holesky upgrade on the Ropsten testnet.
