Understanding The Upgrade Of The Ethereum Dencun: Control And Impact On Transaction Fees

Ethereum will launch a Dencun upgrade. (Photo; Doc. Unsplash)

JAKARTA - The worldwide Ethereum community is waiting for the launch of the planned Dencun update in just hours. This update is expected to be able to provide major changes to transaction fees on the known expensive Ethereum network.

Understanding Upgrade Ethereum Dencun

Dencun is a combination of two projects, Deneb and Cancun, which will update two important aspects of Ethereum: layer consensus and execution. This update, also known as hard fork, aims to reduce transaction costs, especially for Ethereum Layer 2 (L2) rollups, which is a solution to increase Ethereum transaction capacity.

One of the key features of Dencun is the introduction of proto-danksharding or EIP-4844, which will allow transaction data storage in a new format called blobs. This is expected to increase efficiency and reduce transaction costs.

Why Is Upgrade Dencun Important?

The Dencun upgrade is considered an important action in Ethereum history as it will introduce new ways of storing more efficient transaction data. Layer-2 networks such as Arbitrum, Optimism, and Polygon, which have become the main platform for Ethereum transactions, are expected to benefit greatly from this update.

After Dencun, these networks will be able to submit data to Ethereum in a more efficient way, which in turn is expected to reduce costs for users.

Impact On Transaction Fees

According to the latest data, the average cost of sending ETH on the layer 2 Arbitrum network is $0.24 (around Rp. 3,737), and to exchange the cost token is $0.67 (around Rp. 10,432). At Optimism, the shipping cost is $0.47 (around Rp. 7,318) and for the swap token it is $0.92 (around Rp. 14,324), while Polygon charges $0.78 (around Rp. 12,145) for each transaction.

Following the Dencun update, the focus of development will move on to the next update currently known as Electra + Prague (Pertra). While the specific details of this update are still undetermined, one of the features that might be introduced is Verkle Trees, which aims to increase the storage capacity of data.

Dencun update is expected to be a new milestone in the Ethereum ecosystem, with faster transactions and lower costs, supporting Ethereum's vision of becoming the world's leading smart contract platform.