Ethereum’s developers are testing the Dencun upgrade by successfully deploying it on the Sepolia testnet on Tuesday.
Sepolia Testnet Transition Goes Without Hitch
Testing has commenced on Ethereum's significant upgrade, Dencun, with the deployment on the Sepolia testnet marking a crucial milestone. The focus of this upgrade is on implementing proto-danksharding and more cost-effective data blobs to enhance network storage capacity and alleviate transaction costs.
The transition of Sepolia to the upgrade's code changes was executed smoothly, and the initial activation displayed no issues.
A DevOps engineer at the Ethereum Foundation shared the successful news on Twitter, emphasizing the uneventful nature of the testnet forks:
"Blobs are now flowing in Sepolia. Uneventful testnet forks are the best ones!"
Series Of Testing Before Mainnet Deployment
The journey of the Dencun upgrade to the successful Sepolia activation had its challenges during the Goerli testnet rehearsal on January 17. The Goerli fork encountered a bug within the Prysm client, resulting in a network split. Fortunately, developers swiftly addressed the issue, resolving it several hours after the initiation of the fork.
Before the Dencun upgrade makes its way to the Ethereum mainnet, it will undergo one final test on the Holesky testnet, which is scheduled for February 7th. The launch date on the mainnet remains undetermined, contingent on the performance of the upgrade on both testnets.
Paving the Way for Ethereum's Scaling Solutions
The Dencun upgrade holds promise for Ethereum's Layer 2 scaling chains, aiming to enhance network storage and lower transaction costs. The introduction of bulk data capability, achieved through the EIP-4844 upgrade or proto-danksharding, sets the stage for Ethereum to support scaling solutions like rollups and sidechains more securely.
While Shapella enabled staked ETH withdrawals in the last major upgrade, Dencun represents the most substantial expansion of core functionality since 2021. Its impact is expected to be far-reaching, especially in terms of data availability and reduced fees on Layer 2 transactions.
Addressing L-2 Transaction Costs
The current surge in on-chain activity following the Merge has led to increased transaction costs on Layer 2. Gas fees on prominent Layer 2 networks such as Arbitrum, OP Mainnet, and Base have risen by approximately 50% to 100% since mid-October. Dencun addresses these concerns by replacing gas-intensive calldata with blobs, offering a solution to the rising costs associated with on-chain data storage.
Carl Beekhuizen of the Ethereum Foundation highlighted the importance of reducing the cost of storing data on-chain, a primary bottleneck for scalability gains on Layer 2, saying,
“If you scale to thousands and thousands of transactions, then all of a sudden it costs a lot just to [store the data] on-chain. The idea behind Danksharding and EIP-4844 is to provide really cheap data storage… so the L2s can provide cheap transactions to their users.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
