Dencun Upgrade Arrives: Ethereum's "Slimming" Movement

Ethereum is about to undergo a significant transformation. As the most important public chain in the Web3 ecosystem, its Dencun upgrade was officially launched on March 13, 2024. What is the core of this upgrade? Simply put: making transactions 100 times cheaper.

Dencun Core Highlights: EIP-4844 “blob” Black Technology

If you’ve recently used Arbitrum or Optimism, you’ll notice that transaction fees are ridiculously high. The Dencun upgrade aims to solve exactly this problem.

The key innovation of the upgrade is called Proto-Danksharding (EIP-4844), which introduces “blob” data packets. In simple terms, it opens a “fast lane” for Ethereum, dedicated to processing Layer-2 transaction data without occupying mainnet computational resources.

According to official data, this mechanism can reduce Layer-2 transaction fees by 10-100 times. In other words:

• Transferring ETH on Arbitrum drops from $0.24 to below $0.02
• On Optimism, from $0.47 to around $0.05
• Token swap fees from $0.67 down to $0.07

This is not hype but a real economic model reform.

Not Just Lower Fees: Other Changes

Dencun is actually a combination of “Cancun + Deneb.” Cancun mainly upgrades the data layer, while Deneb improves the consensus layer. The combined improvements include:

EIP-1153: Temporary storage optimization, further reducing gas costs

EIP-4788: Cross-chain calls between the beacon chain and other chains, improving Layer-2 and mainnet interaction

EIP-5656: Memory copy instruction optimization (MCOPY), enhancing smart contract efficiency

EIP-6780: SELFDESTRUCT restrictions, strengthening network security

EIP-6493: Fine-tuning validator block selection mechanisms, reducing mining centralization

These seemingly technical improvements all aim toward one goal: making Ethereum faster, cheaper, and more stable.

Upgrade Timeline (Completed)

This upgrade was not rushed. It took nearly three months from testing to mainnet deployment:

• January 17: Goerli testnet
• January 30: Sepolia testnet
• February 7: Holesky testnet
• March 13: Mainnet officially launched (completed)

The thorough testing cycle ensures security, which is why the community is confident in Dencun.

“Liberation Moment” for Layer-2 Ecosystem

For Layer-2 applications, Dencun is like giving them a flying license. According to Fidelity’s analysis, Layer-2 networks currently account for only about 10% of total Ethereum transaction fees. After the upgrade, this ratio will significantly decrease.

What does this mean?

• DeFi transaction costs plummet, arbitrage opportunities shrink
• Small transactions finally become affordable
• DEXs, lending protocols, derivatives trading will see increased activity
• Developers can break through the previous “cost barrier” and explore new application scenarios

Practical Impact on Ordinary Users

Don’t be intimidated by technical terms. In simple terms, the Dencun upgrade means:

Faster: Ethereum’s throughput is expected to increase from 15 TPS to 1000 TPS (target)

Cheaper: Whether on mainnet or Layer-2, gas costs will drop significantly

More Applications: Developers will have more resources for innovation, leading to continuous new applications

Better Experience: Transaction confirmation speeds up, on-chain interaction delays decrease

For users holding ETH or using Layer-2, this is good news. For newcomers wanting to participate in DeFi or NFTs, it greatly lowers entry barriers.

What’s Next After the Upgrade?

Dencun is not the end. Ethereum’s grand vision is to achieve full Danksharding, and Proto-Danksharding (EIP-4844) is just a transitional phase.

The next major upgrade is called Petra (Electra + Prague), which focuses on introducing Verkle Trees, a new data structure to further optimize storage efficiency. The ultimate goal is to enable Ethereum to achieve 100-1000x scalability, with gas fees dropping below $0.001.

The road ahead is long, but Dencun is a crucial step.

Potential Risks to Know

No upgrade is perfect. Potential issues include:

Technical Risks: Despite thorough testing, large-scale system upgrades may still encounter unforeseen bugs

Compatibility Issues: Some old smart contracts or applications might need adaptation, leading to short-term instability

Transition Period Volatility: During initial deployment, gas fees may fluctuate temporarily until the market fully adapts to the new mechanism

Adoption Rate: The actual fee reduction depends on how quickly developers and users adopt the new system

Good news is, the Ethereum community has prepared extensively for Dencun, and the mainnet deployment has shown stable operation.

Summary: Ethereum is Self-Optimizing

The Dencun upgrade represents a significant evolution for Ethereum. It’s not radical innovation but a well-argued and tested system optimization. Through the combination of Proto-Danksharding and other EIPs, Ethereum is taking solid steps toward scalability while maintaining security and decentralization.

For traders, developers, and ordinary users, this upgrade means lower costs and better experiences. For the long-term development of the Ethereum ecosystem, Dencun is a necessary step toward true large-scale adoption.

The “Golden Age” of Layer-2 may have officially begun.