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Author: Samara Alpha Management CEO Wilfred Daye, Coindesk; Compilation: Deng Tong, Bit Chain Vision Realm
The Ethereum blockchain is about to upgrade a major recent upgrade to enhance its scalability, efficiency and security.These improvements have solved the challenges of the three difficulties of the blockchain -balanced security, decentralization and scalability.These continuous enhancements are essential for improving network performance while maintaining low cost.
The upcoming Ethereum CANCUN-Deneb (“” DENCUN “) hard fork upgrade will be deployed on March 13 in the main network.This upgrade will be given priority to scalability, efficiency, and security through various Ethereum improvement proposals (EIP), especially for prototype EIP -4844 -sharding.The proposal aims to optimize GAS costs and enhance network scalability.
The DENCUN upgrade marks the beginning of the Ethereum route “The Surge” era, paving the road for the large -scale scalability through Layer 2 Rollup.These Rollup will make Ethereum easier to access and user -friendly, and promote the use and practicality of various fields, including DEFI 2.0.
Layer 2 rollup’s benefits
Layer 2 rollup has enhanced the scalability and efficiency of Ethereum by processing the transaction under the process, while retaining the security guarantee of the main Ethereum blockchain (Layer 1).They have the following characteristics:
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Execution under the chain:The transaction under the chain can achieve a faster and more cost -effective throughput without competing the space on the Ethereum blockchain.
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Transaction aggregation:The results of multiple transactions are aggregated or bundled into a single compressed form of transaction data after executing under the chain.
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Published to the main chain:Compressed transaction data or rollup, and then published to Ethereum main chain (Layer 1).
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Data usability:Despite the underwriting processing, the main Ethereum blockchain ensures that all participants can access and verify data related to transactions.
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Safety:Layer 2 rollup maintains the security guarantee of the Ethereum network through various encryption technology.
EIP-4844’s significance to the original Danksharding
EIP-4844 or Proto-Danksharding aims to significantly enhance the scalability of the network by introducing the additional temporary data Blob.This innovation reduces the treatment cost and increase throughput through the following ways:
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Temporary data block:These storage space attached to the Ethereum block allows additional data in the transaction without the need to directly interact with the Ethereum virtual machine (EVM).
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Reduce treatment cost:Through BLOB efficiently processing transaction data, the user’s GAS cost can be reduced, which may make the average transaction cost below $ 0.01.
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Improve throughput:EIP-4844 can achieve higher transaction throughput, which may reach the speed of 100,000 transactions (TPS) per second.
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Promote Layer 2 solution:The proposal is expected to benefit Layer 2 extended solutions by providing additional temporary storage space, such as Rollup.
Surrounded by Dencun’s upgrade transaction prospects
Ethereum Network transitioned from the transition from equity to the workload certificate (“merger”) in 2022, and Ethereum became a shrinking asset.At present, more than 25% of the total supply of Ethereum is locked on the pledge platform, which has greatly reduced the supply that can be used for transactions or investment.This impact and destruction mechanism occur at the same time, and ETH supply decreases by 0.21%per year.
Dencun is expected to be an active catalyst of ETH.Ethereum holders transferred ETH, worth more than 1.3 billion US dollars to private wallets, which greatly reduced risk exposure to the exchange.According to the recent data from Bloomberg, ETH/BTC’s spot ratio fell to 0.5, reminiscent of the level after Luna/Terra in 2022.
This provides a reasonable entry point for Ethereum enthusiasts.In addition, ETH’s short -term bullish buying surge has surged, and traders are expected to rise to $ 4,000 at the end of March.Traders also tend to buy strategies for buying the options in March 2024 and sold in April 2024.The bullish mood of traders on the market is obvious. ETH’s nominal value of the bullish options and ETH declines options are about $ 2.5 billion and $ 1 billion, respectively.
Looking forward to the future, in addition to Ethereum, other high Beta names in Layer 2 are also expected to benefit from the upgrade of Dencun.For example, Layer 2 networks such as ARBITRUM (ARB) and Optimism (OP) bind it together before publishing the transaction back to the main chain, and it is expected to obtain a significant advantage by introducing data BLOB.
