The success of the Ethereum Denkun update: a major milestone in reducing data charges.

The Ethereum blockchain has successfully enabled the long-awaited “Denkun” update, a major milestone in efforts to reduce data charges and scale the network.

In the year The update, which took place on March 13, 2024 at 13:55 UTC, is considered the biggest update since the merger and is expected to have a significant impact on the Ethereum ecosystem.

TLDR

Ethereum to implement “Denkun” upgrade to reduce data fees and speed up growth on Layer-2 networks Proto-danksharding will enable a new place to store data on Ethereum at a lower cost The upgrade is expected to benefit Layer-2 networks and may lead to a fee war between them Ethereum price from Denkun It dropped slightly after the update, but quickly recovered.

At the heart of the Denkun update is the implementation of “proto-danksharding”, which introduces a new transaction category of databases – a dedicated place to store data on Ethereum at a low cost.

This feature is designed to take advantage of layer-2 networks like Arbitrum, Optimism, and Polygon, which help scale Ethereum by aggregating transactions and placing them in large batches on the main blockchain.

Blubs have arrived on Ethereum! ????

It has successfully launched the Denkun update on the Ethereum mainnet, making Layer 2 a major upgrade in Ethereum expansion.

Now that the Ethereum mainnet update is complete, we expect the ArbOS Atlas update to be…

— Arbitrum (????,????) (@arbitrum) March 13, 2024

By enabling Layer-2 networks to post data directly to Ethereum via the new databases instead of using the existing inefficient transaction data fields, Denkun's upgrade aims to make the process of preparing data for packages efficient and cost-effective. This is expected to reduce charges for end users on these Layer-2 networks.

Denkun's update is a crucial step in Ethereum's implementation of sharding, the technology feature that divides the blockchain into mini-shards to enable more transactions at a lower cost.

While the full implementation of sharding is still years away, proto-dunksharding serves as a temporary solution to Ethereum's high gas fees.

In addition to proto-dunksharding, the Denkun update package includes eight Ethereum Improvement Proposals (EIPs) that primarily affect developers. These proposals aim to reduce fees for storing data on the chain, improve the design of bridges and pools, and enhance the overall user experience.

When Denkun's update goes live, there is speculation that it could spark a fee war among Ethereum layer-2 networks as they compete for users by offering cheaper transaction fees.

However, the full impact of proto-danksharding on transaction fees will only be measured once the update is fully implemented and accepted by the ecosystem.

Ethereum's native cryptocurrency Ether (ETH) took a small dip in price following the launch of the Denkun update, but quickly recovered.

This temporary price fluctuation is not unusual after significant corrections, as the market adjusts to the changes and assesses their long-term implications.