The Dencun upgrade includes several tools aimed at reducing fees, including the highly anticipated "proto-danksharding" upgrade which will reduce layer-2 fees.
Ethereum's upcoming "Dencun" upgrade (also known as "Cancun-Deneb"), will begin testing on the Goerli testnet on January 17, according to an official note published on the Ethereum GitHub repository.
The upgrade will then be added to the Sepolia testnet on January 30 and Holesky on February 7. The Ethereum team has not yet announced when Dencun will be implemented on the mainnet.
The Dencun upgrade includes several tools aimed at reducing fees, enabling new features for bridges and staking pools, and limiting the use of self-destruct operations on smart contracts.
One of the key features of Dencun is the inclusion of Ethereum Improvement Proposal (EIP) 4844, also known as "proto-danksharding."
This will allow layer-2 (L2) rollup networks to store certain transaction data temporarily using a new format called "blobs." Blobs can be deleted after 18 days, significantly reducing transaction fees on layer 2s. This is a highly anticipated upgrade for L2s like Arbitrum and Optimism.
Other notable proposals in the Dencun upgrade include:
- EIP-1153: Introduces a "transient storage" system to further reduce fees.
- EIP-4788: Increases transparency by storing the root of each Beacon Chain block in a smart contract.
- EIP-6780: Limits the use of the self-destruct keyword to prevent the erasure of smart contract code and the transfer of funds to the deployer.
Ethereum upgrades typically undergo testing for a few months before being deployed to the mainnet. The previous upgrade, codenamed "Shapella," began testing in February and was launched to the mainnet in April. Shapella was a major upgrade and saw Ethereum transition from proof-of-work to proof-of-stake.
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