Ethereum's London upgrade is complete, with multiple Layer 2 solutions being updated sequentially.
Ethereum has officially launched the highly anticipated Dencun upgrade on the mainnet, introducing a new concept called "blobs" aimed at revolutionizing the efficiency and cost-effectiveness of L2 transactions.
Simple Explanation | What is the Dencun upgrade on Ethereum and how does it impact L2?
The Dencun upgrade is now live on the Ethereum mainnet bringing with it a host of EIPs including the beloved EIP-4844!
The blobs are here and a new era of Ethereum scalability has begun! pic.twitter.com/ZQwwUsmYVv
โ sassal.eth/acc ๐ฆ๐ (@sassal0x) March 13, 2024
Table of Contents
Unleashing the Power of Blobs
The core of the Dencun upgrade integrates EIP-4844, which will be activated around Epoch: 269568, close to 10 p.m. on 3/13. This update marks the beginning of a new era for Ethereum L2 Rollup, shifting from the traditional "calldata" method to using blobs for transaction broadcasting, significantly reducing network transaction fees.
Dencun went live, we've had blobs land in blocks on mainnet .oO ๐
โ timbeiko.eth โ๏ธ (@TimBeiko) March 13, 2024
Multiple L2 Solutions to Benefit from Significant Fee Reductions
Blobs aim to strengthen the Ethereum ecosystem by enhancing data availability without disrupting the existing infrastructure. This clever approach is expected to lower transaction costs across various L2 scaling solutions, including Base, Optimism, Arbitrum One, zkSync, and Starknet. By establishing a dedicated fee market for blobs, low transaction fees on the second layer can be maintained even during peak congestion on the Ethereum network.
ARB, OB, and Others to Follow Suit with Updates
The speed at which L2 integrates blobs may vary. While some may immediately adopt this innovation, others may gradually introduce blobs into their systems.
- Arbitrum: Update scheduled for 3/14
- Optimism: Update pending
- Base: Update scheduled for 3/14
- Blast: Blocks halted due to Ethereum update
Dencun Upgrade Beyond Blobs
The Dencun upgrade is not just about EIP-4844; it also includes eight other key code updates, further solidifying the foundation of Ethereum. This includes EIP-4788, which establishes an "enshrined oracle" to enhance interactions between Ethereum's execution layer and consensus layer. Additionally, EIP-1153 is introduced, focusing on "transient storage," a key component for the upcoming release of Uniswap v4 later this year.