of ethereum blockchain A new upgrade is being introduced called Dencun. Scheduled to be released on March 13, this upgrade will, among other things, make the Layer 2 network built on top of the Ethereum mainnet cheaper and faster. Here’s what you need to know:
What is Ethereum Dencun Upgrade?
The Ethereum network was initially launched as a proof-of-work (PoW) compatible blockchain. This consensus algorithm model involved slow transactions and energy consumption. With The Merge upgrade in September 2022, the Ethereum blockchain will has migrated Move to energy-efficient proof-of-stake (PoS) mechanisms. Still, transaction throughput remained an issue.
Layer 2 blockchain was created to solve the scalability problem faced by Ethereum. Leveraging Ethereum’s security and decentralization, these L2 projects offer users faster and cheaper transactions. Examples of these L2 blockchains include: polygonOptimism, Base, Arbitrum, zkSync, etc.
Ethereum introduced the Dencun upgrade to improve the performance of these L2 networks. This upgrade comes with a feature called Protodunk Sharding, which is designed to reduce data availability (data blobs) and transaction costs in L2 networks. This feature precedes a higher-level feature called Danksharding and extends the capabilities of Proto Danksharding.
Before going live on the Ethereum mainnet, Dencun Deployed to testnet Gerli, Sepolia, Horesky, etc. Developers anticipate that Dencun’s upgrade will allow the blockchain to handle as many as 100,000 transactions per second after it is fully integrated with the Ethereum network.
According to Tim Beiko of the Ethereum Foundation, the Dencun upgrade will: roll out Ethereum mainnet slot number 8626176 (March 13). This upgrade will encourage more developers to deploy decentralized applications (dApps) on the Ethereum network. The blockchain ecosystem also has the potential to attract more users.
Will ETH price increase after Dencun upgrade?
Market experts predict that the Dencun upgrade could cause a short-term price increase for Ethereum’s native coin, ETH. Still, there is no guarantee that a volatile asset will appreciate after a Dencun upgrade.
ETH is currently trading at $2,490, showing a modest 1.6% increase over the past 24 hours and an 8.8% increase over the past week.
sauce: coin statistics