Put Ethereum to the test
On the 17th, the crypto asset (virtual currency) Ethereum (ETH) implemented the next upgrade “Dencun” on the testnet “Goerli”.
The event was held on the 17th as originally planned. The “Proto-Danksharding” feature that is attracting the most attention in Dencun has also been implemented in Goerli.
Apparently there was a client issue during the upgrade, but it was fixed immediately.The validator then came back online and the chain resumed finalization.reporthas been done.
Proto-dunk sharding is a feature that reduces the transaction cost of data transfer from L2 to L1, significantly lowering L2 transaction fees. This will make it possible to reduce L2 transaction fees by up to 100 times.
What is L2?
Abbreviation for “Layer 2”, which refers to the “second layer” network. If all transactions are processed on the main chain, the load will be heavy, leading to a decrease in processing speed and a rise in network fees. By performing some transactions on L2, it is expected that the load on the main chain will be reduced and processing speed will be improved.
▶️Virtual currency glossary
connection:What is blockchain layer 2? Explaining types, points of interest, and typical networks
Before implementing Dencun on the L1 Ethereum mainnet, we plan to test it on two more testnets: Sepolia and Holesky. The Ethereum Foundation made an announcement about Dencun on the 10th of this month, and explained that if no major problems occur with Goerli, Dencun will be implemented sequentially on the two testnets mentioned above within the next few weeks.
Currently, it is believed that Dencun will be implemented on the mainnet in the first quarter of this year (January to March).
The contents of Dencun and upgrades other than Proto Dunk Sharding are summarized in the article below.
connection: What are the importance and benefits of Ethereum’s next upgrade “Dencun”?
Expectations for Dencun
A Bitcoin (BTC) spot ETF (exchange traded fund) was approved for the first time in the US, and there has been speculation recently that an Ethereum spot ETF will be approved next, and Dencun is also attracting a lot of attention.
Market forecasts based on expectations for the approval of physical ETFs have been increasing, but last month analysts at the US financial giant JP Morgan conducted an analysis based on the implementation of proto-dunk sharding.
connection: “Ethereum will outperform Bitcoin in the medium term” QCP Capital predicts
“We believe Proto-Dunksharding will be a major step towards improving Ethereum network activity,” the analyst said. He also expressed the view that “Ethereum is likely to outperform Bitcoin and other major cryptocurrencies in 2024.”
connection: “Ethereum is expected to outperform Bitcoin’s growth rate” JP Morgan forecast for next year