Ye Zhang, co-founder of Scroll, a layer 2 project that uses zero-knowledge proof, is cautiously optimistic about the upcoming Dencun update. in a mail At X, Zhang pointed out the potential benefits of Dencun, particularly the low transaction fees.
However, in the same post, the co-founder highlighted the likely challenges it could present for existing Layer 2 scaling solutions using rollups.
Dencun introduces EIP-4844 on ethereum: what it means
ethereum developers plan to deploy Dencun in mid-March. The implementation of ethereum Improvement Proposal (EIP)-4844 is a big part of this hard fork. With this execution, the proposal will introduce a new “blob bearer transaction” feature.
What's unique about these transactions is that they allow users to cheaply attach blobs, which are large amounts of data, compared to traditional ethereum transactions.
Based on Goerli testnet observations, Zhang anticipates that blobs will be 3 to 5 times cheaper than traditional calling data on ethereum. Consequently, the big difference means that innovative developers can create blob inscriptions. These enrollments will effectively compete with layer 2 solutions such as Arbitrum or Optimism by leveraging roll-ups.
This possibility cannot be ruled out because, in essence, EIP-4844 aims to reduce layer 2 transactions through blob transactions. Effectively, the proposal means the basis of Blob registrations.
This solution takes a different approach, but could encompass cumulative platforms if widely adopted. This will be the case if users who transact large amounts of data realize the advantage of going the blob enrollment route.
Still, roll-ups will have clear advantages over blob signups. A notable one is the superior scalability of roll-ups. These solutions can inherently process more transactions per second. Additionally, they are secure as they inherit the security of the ethereum mainnet.
eth Prices Steady Above $3,800
Still, until Dencun is implemented, the impact of EIP-4844 will be carefully measured. Overall, the ethereum and layer 2 communities are delighted with the update, hoping that it will boost eth even further in the current bull run.
<img class="size-full" src="https://technicalterrence.com/wp-content/uploads/2024/03/Ethereum-Plans-for-Dencun-Upgrade-Is-This-the-End-of" alt="ethereum price is in an uptrend on the daily chart | Source: ETHUSDT on Binance, TradingView” />
ethereum is trading above $3,800. It has risen by double digits in the past week and experts predict even more gains in the coming days.
Related Reading: Analyst Cites Key Indicators Indicating bitcoin Correction
In the medium term, bulls are targeting $5,000, around the all-time high.
Amid booming eth and cryptocurrency prices, interest in ethereum layer 2 solutions continues to expand. The latest L2Beat data shows that Arbitrum, Optimism and other alternatives manage more than 36 billion dollars. Arbitrum, which enjoys its first-mover advantage, manages almost $16 billion.
