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.
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.
Ethereum is gearing up for the Dencun upgrade, set to reduce fees for layer-2 networks by introducing "proto-danksharding," a new method for storing transaction data. The upgrade, delayed from its original target, will benefit networks like Arbitrum, Optimism, and Polygon, allowing them to post data to Ethereum more efficiently and reduce fees for end-users. Additionally, it will benefit data availability layers and pave the way for future upgrades like Electra + Prague. The upgrade is expected to significantly lower fees for layer-2 transactions and bring about a new era of cheaper fees for Ethereum's auxiliary networks.
The launch of new blockchains, including layer-2 networks built on Ethereum, is on the rise, with the recent launches of the Sei network and the Shibarium blockchain. Sei, a layer-1 blockchain built using Cosmos technology, gained over $1 billion in trading volume after its launch and aims to provide faster performance for decentralized trading applications. However, the launch was marred by questions and complaints from early adopters regarding the timing of the airdrop of rewards tokens. Shibarium, built on Ethereum, aims to reduce transaction fees and boost the price of the SHIB token but experienced technical difficulties on its first day. In other news, Binance shut down its Binance Connect service, former U.S. President Donald Trump holds $2.8 million in a cryptocurrency wallet, and Hedera Hashgraph's HBAR token surged after being added to the U.S. Federal Reserve's instant payments platform.
