From Christine Kim's summary of the 160th Ethereum All Core Developers Execution (ACDE) Meeting, the anticipated major change in Ethereum's Cancun-Deneb upgrade will be EIP-4844, also known as "proto-danksharding." EIP-4844 aims to enable temporary storage and retrieval of off-chain data by Ethereum nodes to meet the data and storage requirements of blockchain applications.
If successfully activated, EIP-4844 is expected to reduce transaction costs for Layer 2 rollup solutions (including Optimism and Arbitrum) and even significantly improve the speed of Ethereum Layer 2 by up to 10 times or potentially even 100 times with lower costs.
The Cancun upgrade also includes several other proposals, such as PR 3175 and EIP-6493, which will further enhance the security and consistency of the Ethereum network, providing strong support for the long-term development of the Ethereum ecosystem.
Significantly Increased Transaction Speed and Throughput
Rollup+ Danksharding is currently the only trustless scaling solution for Ethereum in the short, medium, and possibly long term. It aims to greatly increase transaction speed and throughput without compromising security, effectively alleviating congestion issues in the Ethereum network and making applications within the Ethereum ecosystem more efficient.
Extremely Low Transaction Fees
The high transaction fees on the Ethereum network have become a significant barrier for users. The Cancun upgrade will result in a substantial reduction in transaction fees for Layer 2 (L2) transactions, enabling more people to utilize Ethereum's L2 network.
Improved User Experience
The Cancun upgrade will enhance the L2 user experience within the Ethereum ecosystem. The improved transaction speed and reduced transaction fees will allow users to interact with smart contracts faster and at a lower cost, providing a more convenient marketplace for DeFi, GameFi, and NFTs.
Expanded Application Scenarios
The Cancun upgrade will bring forth a wider range of L2 application scenarios within the Ethereum ecosystem. The higher transaction speed and lower transaction fees will incentivize more people to develop and deploy applications on the Ethereum L2 network, further promoting the development of the Ethereum ecosystem.
Furthermore, the Deneb upgrade also considers other code upgrades. Among them, EIP-4788 enables the public exposure of the Ethereum consensus layer's state within the Ethereum execution layer. This will help achieve minimal trust access and promote the development of applications such as staking pools, re-staking protocols, and MEV (Miner Extractable Value). Additionally, EIP-6914 allows the reuse of index numbers of validators who have completely exited the network and remained inactive for a certain period of time. This will bring more benefits to validators.
Moreover, the Cancun upgrade opens up more possibilities for Layer 2 diversification, the development of DA (Data Availability) layer, and the Raas (Rollup as a Service) track. By scaling and offering low fees, it enhances the ecosystem of Layer 2. The OP (Optimistic Rollup) ecosystem becomes more diverse, and the ZK (Zero-Knowledge) ecosystem becomes more available due to improved data availability, facilitating the rapid growth of independent Layer 2 solutions that were previously challenging to operate due to high costs.
Since the Ethereum merge, it has essentially entered a deflationary phase. With the continued prosperity of the Ethereum ecosystem, the economic incentives of Ethereum staking demonstrate strong sustainability and attractiveness. This has attracted an increasing number of institutions to participate, leading to vibrant development in both Ethereum and Layer 2 solutions.
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