The anticipation surrounding the Ethereum Cancun-Deneb (Dencun) upgrade was visible as the Ethereum community eagerly awaits many advancements promised by the foundation. The Dencun upgrade aimed to further enhance Ethereum’s scalability, efficiency, and security through a series of Ethereum Improvement Proposals (EIPs). Among these, EIP-4844, known as proto-dank sharding, stands out for its potential to lower gas fees on layer-two transactions, marking an important step towards mass scalability.
In this article, we look into the elements surrounding the Ethereum Cancun upgrade, exploring its implications, the major EIPs driving the transformation, and the expected timeline for its implementation.
Understanding the Ethereum Cancun-Deneb (Dencun) Upgrade
The Ethereum Cancun-Deneb, also called the Dencun upgrade, is an upcoming update with the Ethereum network that shortly follows the Shanghai upgrade. According to recent updates, the upgrade marks the start of “The Surge” era and thus will lead to the implementation of around 9 EIPs.
From the Ethereum roadmap, this new upgrade will help solve certain scalability issues within the Ethereum network and enhance the network performance. Vitalik Buterin, the co-founder of the Ethereum network, suggests a targeted “10,000 transactions per second and beyond” after the upgrade.
Major EIPs of the Ethereum Dencun Upgrade
- EIP-1153 — Efficient Gas Fee Usage:
The EIP 1153 will be the one to introduce TLOAD and TSTORE, which are the two EVM opcodes that will help reduce Ethereum gas fees. When introduced, these two work in a way that erases themselves after every transaction on the network.
- EIP-4788 — Transparent Beacon Chain Interaction:
This is another EIP that will provide exposure to the Ethereum Beacon chain’s block roots to EVM. To achieve this technological milestone, it will store these block roots in a smart contract within the execution layer.
- EIP-4844 — Proto-danksharding for Lower Gas Fees:
During this EIP, temporary data blobs will be introduced, and their major function is that rollups will be used to store some parts of the transaction data. Doing this will help lower gas fees to the Ethereum network, as the temporary data blobs will not interact with the EVM.
- EIP-5656 — Simplified Memory Copying:
The EIP-5656 will develop a simpler and cheaper way to copy memory in the EVM through the introduction of the newly created EVM copy code-named MCOPY.
- EIP-6780 — Limiting SELFDESTRUCT Opcode:
The EIP 6780 within the Ethereum Dencun Upgrade will provide major updates to the SELFDESTRUCT opcode. This update implies that the SELFDESTRUCT opcode will only delete a contract if the contract creation and opcode calling happen within the same transaction.
- EIP-7044 — Validator Exit Message Restriction Removal:
This EIP is specially made for the validator section of the Ethereum network, as it will remove limitations on the validity of a validator’s exit message.
- EIP-7045 — Extended Attestation Period:
EIP-7045 will increase the period during which an attestation can be included in a Beacon Chain block. Furthermore, it provides a more extended timeframe for including attestations, contributing to improved synchronization within the network.
- EIP-7514 — Validator Activation Cap:
This EIP adds a hard cap on the number of validators that can be activated during each epoch. Also, it controls the validator activation process, ensuring a balanced and controlled growth of the validator set.
- EIP-7516 — Blob Base-Fee Opcode:
Introduces a new opcode called BLOBBASEFEE, returning the value of the blob base fee of the current block. Also, it enhances transaction fee transparency and management, providing a valuable tool for users and developers.
Major Pros of the Ethereum Cancun Upgrade
The Ethereum Cancun upgrade brings forth a multitude of benefits that extend beyond resolving existing network challenges. So, enhanced scalability, reduced gas fees, improved security, better cross-chain communication, and efficient data storage are among the major advantages that participants in the Ethereum ecosystem should anticipate.
- Positive Market Impact
The positive market impact of the Ethereum Cancun upgrade is anticipated to be substantial. As the network’s capabilities are boosted, attracting more developers and users, the demand for Ethereum (ETH) is expected to rise. Additionally, the successful implementation of the upgrade could instil confidence in investors, influence the price of ETH, and solidify Ethereum’s position in the market.
- Improvement in Scalability
Scalability has been a persistent challenge for Ethereum, and the Cancun upgrade is a formidable response to this challenge. The concept of proto-dank sharding, a key feature introduced by EIP-4844, is committed to improving scalability.
The main goal of the Cancun upgrade is to increase the transaction volume that the Ethereum network can sustain per second, and proto-dank sharding plays a major role in achieving this objective. By introducing temporary storage space as data blobs, proto-dank sharding enables Layer Two rollups to attain higher transactional volume. These data blobs serve as a mechanism for efficiently loading data onto blocks at a lower cost.
Significantly, these blobs are designed to be temporary and are deleted after a fixed period, addressing the challenge of long-term data storage on the blockchain. Additionally, Proto-dank sharding acts as an intermediate solution to the scalability dilemma faced by Ethereum. The blockchain trilemma, consisting of security, decentralization, and scalability, poses a constant challenge, and proto-dank sharding is a strategic step toward enhancing scalability without compromising the other essential aspects.
- Excellent Data Storage
The Ethereum Cancun upgrade introduces significant improvements in data storage efficiency, a critical aspect of blockchain technology. The enhancements are primarily driven by EIP-1153, which introduces two new Ethereum Virtual Machine (EVM) opcodes — TLOAD and TSTORE. These opcodes are designed to erase themselves at the end of each transaction, contributing to more efficient and cost-effective use of gas fees.
Moreover, EIP-1153’s impact on data storage is multifaceted. The introduction of TLOAD and TSTORE opcodes represents a departure from the traditional approach where opcodes persist in the Ethereum global state. So, with the new opcodes erasing themselves at the end of each transaction, the global state is not burdened with unnecessary data, which leads to a more streamlined and resource-efficient blockchain.
Furthermore, one of the key advantages of these opcodes lies in their ability to optimize gas fee usage. Gas fees are a vital consideration in the Ethereum network, affecting the cost of transactions and smart contract interactions.
- Enhanced Security
Security is a paramount concern in the blockchain space, and the Ethereum Cancun upgrade addresses it through EIP-6780. So, by disempowering the SELFDESTRUCT opcode, the upgrade limits the termination of smart contracts, therefore providing increased protection for user data and funds.
- Improvement in Cross-Chain Communication
Cross-chain communication is a key aspect of blockchain interoperability, and EIP-4788 plays a major role in enhancing this functionality. So, by exposing the Ethereum Beacon chain data to execution layers, the Cancun upgrade facilitates seamless and secure interactions between various blockchain networks. This advancement, however, strengthens the bridges connecting different chains and stake pools.
Conclusion: What is Next For the Ethereum Blockchain?
The Ethereum Cancun-Deneb upgrade stands as a testament to Ethereum’s commitment to overcoming challenges and pushing the boundaries of blockchain technology. From addressing scalability issues to enhancing security and reducing gas fees, the upgrade paves the way for a more efficient and user-friendly Ethereum ecosystem.
The Ethereum community remains steadfast in its dedication to testing and refining the technical implementations of the various EIPs.
Disclaimer: BingX does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company. BingX is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the article.
