- The Dencun upgrade will enhance the Ethereum Mainnet’s scalability using rollups
- This will lead to lower rollup transaction costs, which end users can benefit from
The Ethereum Mainnet’s Dencun Upgrade will move the blockchain in the direction of scalable settlement according to a report by Goldman Sachs, cited by CoinDesk.
Enhanced security and lower gas fees
The Dencun upgrade will enhance the Ethereum Mainnet’s scalability using rollups, improve network security, and optimize gas fees. It is expected to take place in the first quarter of next year.
Goldman Sachs wrote that Dencun’s main impact would be raising data availability for layer-2 rollups via proto-danksharding. This would lead to lower rollup transaction costs, which end users can benefit from.
What are rollups?
Layer 1 blockchains are like base layers, or the blockchain’s underlying infrastructure. Layer 2 blockchains, on the other hand, are a set of separate chains or off-chain systems running on top of Layer 1s. The Ethereum Mainnet is the most-used Layer 1 blockchain.
Rollups process transactions on a Layer 2 chain, then port the data back to the L1 at a minimal cost.
Proto what?
Goldman Sachs’ report adds that proto-danksharding would be used to set the infrastructure for future scalability upgrades as part of the Mainnet’s ‘Surge’ roadmap, including danksharding.
The Surge isthe second phase of Ethereum’s developmental roadmap following the Merge, during which the Mainnet transitioned to a proof-of-stake (PoS) consensus mechanism. During the Surge, it will scale using rollups.
Sharding put to good use
Danksharding will enhance Ethereum’s scalability. It divides the network into shards, but uses them to make more space for group data instead of increasing throughput. Each shard is a separate chain with its own set of transactions and smart contracts. These shards can be processed in parallel, which can significantly increase a network’s capacity and throughput.
The report emphasizes that Dencun would enhance Ethereum’s scalability via rollups, improve network security, optimize gas fees, and execute important housekeeping updates.
