Ethereum developers have reached a consensus on the comprehensive framework for the network's forthcoming upgrade, known as "Dencun". The hard fork, expected to roll out by the end of this year, encompasses five Ethereum Improvement Proposals (EIPs) which are crafted to augment data storage capacity and reduce transaction fees.
At the center of this upgrade is EIP-4844, often referred to as proto-danksharding. This innovative feature is designed to enhance the scalability of the blockchain by creating additional space for data "blobs". This increase in storage capacity is anticipated to bring down gas fees for layer 2 rollups, thus benefiting users.
The other finalized EIPs include:
- EIP-1153: Aims to decrease fees associated with on-chain data storage and thereby enhance blockspace.
- EIP-4788: Seeks to refine designs for bridges and staking pools.
- EIP-5656: Involves minor code modifications related to the Ethereum Virtual Machine.
- EIP-6780: Plans to eliminate code that could potentially terminate smart contracts.
The Ethereum Foundation's protocol support lead, Tim Beiko, emphasized that no further additions will be made to the fork. The precise date for the hard fork implementation is yet to be disclosed, but it is expected to be live by the end of 2023.
"Dencun" reflects simultaneous upgrades occurring on both layers of the blockchain. The "Cancun" upgrade will take place on the execution layer, where all protocol rules reside. In contrast, the consensus layer, responsible for block validation, will undergo its distinct fork known as "Deneb". Hence, the term "Dencun" is a portmanteau combining these concurrent upgrades.
