Better Than Yesterday With BSCS #29: Ethereum Dencun Upgrade - What to Expect?
Ethereum developers will roll out the much-anticipated Dencun upgrade on Wednesday, March 13.
Developers said the upgrade will dramatically impact gas fees for Ethereum scaling networks, with some estimating that they'll drop by 75% immediately.
🔹 The Dencun Upgrade Unveiled
The name is a portmanteau of Cancun and Deneb, two separate upgrades combined to create the term "Dencun."
Following the upgrade, Dencun has already been pushed live on several of Ethereum's testnets. But the real push, to Ethereum's mainnet, will occur today.
⏰ Deployment and Timeline
🟢 Time: 13:55:35 - 13/03/2024 (UTC)
🟢 At: Beacon epoch 269568 (Beacon slot 8626176)
🟢 Watch live on Ethernow.xyz
💎 Key Improvements and EIPs
The upgrade happened roughly a year after the Shanghai upgrade from April 2023, when the newly upgraded proof-of-stake network enabled users to unstake their ETH.
This new upgrade aims to address core aspects of Ethereum’s framework, including its scalability, security, and overall user experience.
At the heart of the Dencun upgrade is the implementation of proto-dank sharding, a cutting-edge concept designed to significantly reduce transaction fees and increase processing speed across the network.
The optimization is expected to make Ethereum a more attractive network for startups to build on, which could add even more protocols to its bustling decentralized finance (DeFi) ecosystem.
Ethereum has long hosted the largest DeFi ecosystem, as measured by the number of protocols it uses. In fact, it has yet to account for less than half of the total value locked in DeFi projects.
🖥 Navigating Staking Dynamics
The upgrade also includes several key Ethereum Improvement Proposals (EIPs), each tailored to enhance specific network functionalities. For example, EIP-7044 will introduce programmable staking exits.
Validators secure the Ethereum network by locking up 32 ETH as their pledge to keep their validator client running and handle the transactions that come their way. If they don't, they stand to lose a portion of their 32 ETH to penalties.
For users who don't have 32 ETH to become solo stakers, there are pooled staking options. These allow users to deposit any amount of Ethereum and earn a share of the staking rewards (minus the pool fees, of course).
But what happens if the validator with whom you've staked your ETH experiences downtime and part of your staked funds get slashed?
EIP-7044 will allow ETH validators and stakers to store instructions for when to exit their position—called perpetually valid signed voluntary exits—in smart contracts and specify when they should be carried out.
For example, someone running a validator node may want to exit if their hardware remains inactive for a certain number of blocks processed. This is an essential protection for validators because they could face mounting fines if they cannot process transactions on time.
‼ Security Reminder
A word of caution for Ethereum upgrade first-timers: There's nothing that users need to do.
Be wary of any blog, email, or Twitter (aka X) post that says otherwise and asks you to click a link or connect your wallet.
📰 Conclusion
As Ethereum embarks on this transformative journey with the Dencun upgrade, the blockchain landscape anticipates a paradigm shift in scalability, security, and user experience.
With meticulous attention to detail and innovative features, Ethereum reaffirms its position as a pioneering force in decentralized technologies, poised to shape the future of digital ecosystems.
About BSCS
BSCS - The fully decentralized protocol for launching new ideas. An all-in-one Incubation Hub with a full-stack Defi platform across all main blockchain networks. We provide exclusive services including IDO/INO Launchpad, Yield farming, NFT Auction, Marketplace, and BSCSwap.
BSCS operates on top of all main blockchain networks and is designed to offer maximum value to consumers and institutions.
BSCS platform uses the Sharing Economy Model for the purpose of profit-sharing, helping users to access DeFi platforms in the easiest, safest, and most cost-effective way. BSCS is the most convenient bridge to connect users and application products on all main blockchain networks.
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