WTF is Dencun Upgrade?
The Ethereum blockchain network reached another significant milestone with the recent Dencun hard fork on 13 March. This upgrade introduced a series of improvements aimed at Ethereum’s scalability trilemma including balancing security, dencetralization, and network scalability.
Dencun consists of enhancements to Ethereum’s network’s execution layer (Cancun) and consensus layer (Deneb), marking the beginning of “The Surge” era in Ethereum’s roadmap, paving the way for achieving mass scalability.
In this article, we will go through the benefits of the Dencun upgrade and what it means for our Beboppers trading on Bebop.
Benefits Of Dencun Upgrade
The core Dencun upgrade known as Proto-Danksharing, or EIP-4844 proposal, reduces the network costs for Layer-2 rollups (L2) by introducing temporary data ‘blobs’ attached to blocks. These ‘blobs’, or known as Binary Large Objects, enable efficient handling of large data packets off-chain by storing data within instead of expensive call data, thus reducing storage burden and network fees.
Proto-Danksharding also enables higher transaction throughput with potential speeds of up to 100,000 transactions per second (TPS), without compromising security and decentralization. In comparison, Ethereum base layer’s current throughput is 15 TPS while L2 networks process around 100 TPS before Dencun upgrade.
These combined improvements result in both significantly lower network fees and faster transaction speed across L2 networks such as Arbitrum and zkSync by storing data in ‘blobs’ instead of expensive call data, which is crucial for mainstream adoption of DeFi.
What It Means For Bebop Users
While users trading on Bebop already enjoy greater network fees savings with multi-token swaps, Dencun upgrade helps to reduce network costs even further across trades conducted on L2 networks — Arbitrum and zkSync in Bebop’s case.
This means all users trading on Bebop across L2 networks like Arbitrum and zkSync Era can now enjoy even greater network fees savings — not all L2 networks are adopting these changes yet but we will see fees reduction in the coming weeks as upgrades are being implemented.
Conclusion
Dencun upgrade takes us one step closer to full Danksharding, with another 10–100x cost reduction in the future. While full Danksharding is still several years away, you can now enjoy significantly lower network fees while trading across L2 networks such as Arbitrum and zkSync — try it for yourself now on https://bebop.xyz!
