Category: NFT News

Ethereum Activates Dencun Upgrade, Ushering New Era For Layer 2 Scalability

Layer 2 teams predict transaction fee reductions of up to 90% post-Dencun.

Ethereum’s long-awaited Dencun hard fork is now complete, significantly bolstering the scalability of its booming Layer 2 ecosystem.

Dencun went live on March 13, paving the way for a significant reduction in the costs associated with transacting on Ethereum L2s by replacing gas-intensive calldata with lightweight Binary Large Objects (blobs) via EIP-4844 — also known as proto-danksharding.

Unlike calldata, blobs do not compete with Ethereum transactions for gas and are pruned from the blockchain after roughly 18 days, dramatically improving data availability and lowering costs for Layer 2 rollups. Domothy, an Ethereum Foundation researcher, noted that several protocols will plan to host blob data indefinitely moving forward during a March 13 live-stream.

David Silverman, the VP of Product at Polygon Labs, described blobs as a temporary storage space facilitating cheap and temporary data storage for rollups and decentralized applications. For rollups, Silverman said blobs mitigate the need for data compression and other “roundabout methods” employed by Layer 2s to bring costs down.