The Dencun upgrade on Ethereum Layer-2 networks like Optimism, Zora, and Base has significantly reduced transaction costs, with some fees now appearing as less than a penny. This upgrade introduced proto-danksharding, allowing for the division of data into smaller pieces to process it more efficiently, resulting in lower operational costs for L2 networks and cheaper transaction costs for users. However, some experts caution that these low costs may not be sustainable as demand for the new data storage method, known as blobs, increases over time.
Ethereum's Dencun upgrade has led to a significant decrease in transaction costs on layer 2 solutions like Optimism and Base, with the average fees dropping to just a few cents. The upgrade allows layer 2 solutions to store data in "blobs" instead of expensive call data, resulting in lower processing costs. While the upgrade is expected to eventually reduce transaction costs by 90%, it has not yet boosted investor interest in the native tokens of rollups.
Following Ethereum's Dencun upgrade, which significantly reduced data fees, developers have posted the entire script of the Bee Movie on the blockchain at a much lower cost using the new "blobs" feature designed for layer 2 networks. This has led to a drop in data fees on the Ethereum network, with fees on layer 2 network Optimism being less than a cent and Base blockchain reporting a 99.8% drop. Blobs provide a cheap way to temporarily store data about transactions, and the uploaded data exists on the network for about eighteen days before being permanently removed.
Ethereum's Dencun upgrade has successfully gone live, marking a significant milestone for the blockchain. The upgrade is expected to substantially lower transaction costs across layer-2 networks and expand the blockchain ecosystem's capabilities. Gas fees on layer-2 networks are anticipated to immediately drop by 75%, with the introduction of proto-danksharding allowing for temporary on-chain data storage. Developers believe Dencun will revolutionize the Ethereum ecosystem, making it more efficient and capable of processing unprecedented amounts of on-chain traffic, potentially eliminating gas fees altogether.
Dencun, the largest Ethereum upgrade since the switch to proof-of-stake, is set to go live, making layer 2 transactions significantly cheaper and more accessible. It introduces Proto-Danksharding, changing how Ethereum stores data, and is a deviation from the original roadmap. The upgrade is a major milestone for Ethereum's scalability and will pave the way for supporting numerous rollups and secondary scaling layers, ultimately aiming to process millions of transactions per second.
