Ethereum a step closer to Dencun upgrade in aim to make transactions cheaper and faster

Ethereum core developers have successfully deployed the network’s latest upgrade on the Sepolia testnet as they labour to improve the network’s efficiency.

Dubbed Dencun, the project is part of Ethereum’s ongoing efforts to enhance scalability and reduce transaction fees, or gas, via a process known as “proto-danksharding.”

Proto-danksharding is expected to improve Ethereum by introducing “blobs,” or larger data packets, allowing the network to handle and store information attached to transactions more efficiently.

This will play a critical role in a world where more and more layer 2 networks are coming online. Proto-danksharding drops fees on those networks even further.

Dencun is Ethereum’s most important upgrade since Shapella, which allowed Ethereum stakers to withdraw their staked Ether from the network.

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What’s next for Dencun?

Tuesday’s deployment is part of a three-step process towards its final implementation on Ethereum’s mainnet.

Earlier this month, developers rolled out Dencun on another testnet called Goerli after a delay due to low participation rates from network validators.

Dencun’s mainnet launch was expected to go live towards the end of last year. It was delayed due to the project’s complexity and scope.

A testnet serves as a simulation environment, replicating the functionality of actual blockchains.

It’s used for trialling applications and crucial updates to ensure their readiness before implementation.

The last leg of the testnet journey, dubbed Holesky, is expected on February 7, where developers will determine a timeline for deploying Dencun on Ethereum’s mainnet.

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“Based on how smoothly Sepolia went today, I’d say [the] odds of a mainnet activation for Dencun in March is now 70%, up from 60%,” Christine Kim, vice president of research at Galaxy Digital, tweeted Tuesday.

“Odds only get stronger if Holesky upgrade next Wednesday also goes smoothly,” she said.

Sebastian Sinclair is a markets correspondent for DL News. Have a tip? Contact Seb at sebastian@dlnews.com.