Ethereum's upcoming Dencun upgrade has sparked both optimism and concern within the blockchain community. Ye Zhang, co-founder of Scroll, a layer-2 project utilizing zero-knowledge proof, acknowledges the potential benefits of Dencun, especially its promise of lower transaction fees. However, Zhang also raises cautionary flags regarding the potential challenges it might pose to existing layer-2 scaling solutions, particularly those utilizing roll-ups.
Ethereum Upgrade EIP-4844 Introduces Low-Cost Blob Transactions, Challenges Existing Layer 2 Networks
The introduction of EIP-4844 in Ethereum's Dencun upgrade marks a significant milestone. This Ethereum Improvement Proposal brings forth a groundbreaking feature: the inclusion of "blob-carrying transactions." These transactions enable users to attach large amounts of data, known as blobs, to transactions at a significantly lower cost compared to traditional Ethereum transactions.
Observations from the Goerli testnet indicate that blobs could be 3-5 times cheaper than conventional call data on Ethereum. This substantial cost difference opens doors for innovative developers to explore blob-inscriptions, potentially challenging existing layer-2 solutions like Arbitrum and Optimism, which rely on roll-ups.
EIP-4844 Proposes Blob Transactions to Reduce Layer-2 Costs
EIP-4844 aims to reduce layer-2 transactions by introducing blob transactions, laying the foundation for blob inscriptions. While this approach diverges from traditional roll-up platforms, it could present a formidable alternative if widely adopted. Users transacting large data volumes may find the blob inscription route advantageous, further fueling its potential adoption.
Roll-up platforms maintain distinct advantages.
Despite the potential of blob inscriptions, roll-up platforms retain distinct advantages. Notably, their superior scalability allows for processing more transactions per second, coupled with inherent security inherited from the Ethereum mainnet.
As the Ethereum network approaches its Deneb upgrade, the price of ETH has stabilized above $3800
As Ethereum's Dencun upgrade approaches, ETH prices remain stable above $3,800. With double-digit growth observed in the past week, experts anticipate further gains. The impending upgrade has fueled excitement within the Ethereum and layer-2 communities, with expectations of driving ETH prices higher in the ongoing bull market.