Cancun-Deneb (Dencun) - An Important Upgrade of Ethereum
Dencun is a significant upgrade of Ethereum, promising updates that will enhance network security and scalability.
Hello everyone,
Dencun is a significant upgrade of Ethereum, promising updates that will enhance network security and scalability. So what exactly is the Cancun-Deneb (Dencun) update on the Ethereum network? Let's explore the key points through this article.
I’m Neo— Admin — Community Manager of Optimus Finance and Growth Marketing of LECLE Vietnam.
1. Overview of the Dencun Update (Cancun-Deneb)
A significant milestone following Shanghai in Ethereum's long-term development journey. This update marks the beginning of "The Surge" phase in the next strategic roadmap.
The Dencun update is scheduled to be deployed in the first quarter of 2024, featuring 10 diverse Ethereum Improvement Proposals (EIPs) aimed at optimizing the performance and security of the Ethereum network. Here are some noteworthy EIPs:
EIP-1153: Optimizing on-chain data storage costs and block space efficiency.
EIP-4788: Strengthening designs related to cross-chain bridges and staking pools to enhance security and usability.
EIP-4844 (Proton dank sharding): The most highly regarded EIP in the update, focusing on Proton dank sharding to expand Ethereum's capacity and reduce transaction fees on Layer-2.
EIP-5656: Introducing a new EVM - MCOPY, aimed at optimizing memory data copying.
EIP-6780: Modifying the behavior of the SELFDESTRUCT function to prevent smart contracts from being destroyed through this function.
EIP-7045: Simplifying the staking process and improving user experience, particularly on third-party staking platforms.
EIP-7514: Adding a limit on the number of validators that can operate per epoch.
EIP-7516: Introducing a new opcode - BLOBBASEFEE.
Details of each EIP can be found here.
Overall, this update emphasizes Ethereum's improvements in scalability through Layer-2 solutions. In particular, the community is particularly interested in EIP-4844, promising significant improvements in transaction fees on Layer-2 networks.
Additionally, the Dencun update brings about several other important benefits:
Enhanced Security: With EIP-6780, the Ethereum network will undergo significant security enhancements, enhancing the ability to prevent smart contracts from being destroyed.
Increased Cross-Chain Interaction: EIP-4788 focuses on strengthening the design of cross-chain bridges and staking pools, aiming to increase interaction and improve the security of this process.
Data Storage Optimization: EIP-1153 provides measures to optimize data storage on Ethereum. This helps reduce storage costs and optimize blockspace utilization.
According to information from the Ethereum development team in a blog post on December 13, 2023, the Dencun update is expected to be officially deployed in early 2024.
To ensure stability and performance, the deployment process on the Goerli testnet is scheduled for January 17, 2024. This provides an opportunity for the community and developers to test and evaluate the update before official deployment.
2. The operation of EIP-4844 Proton Danksharding and detailed design
EIP-4844 Proton Danksharding is one of the most important Ethereum Improvement Proposals (EIPs) in the new update. EIP-4844 proposes a solution for rollup platforms to efficiently add data to blocks at a lower cost.
Currently, rollups face difficulties in reducing costs due to loading user transactions via the CALLDATA function. This process requires processing from all Ethereum nodes and requires direct storage on the blockchain permanently, even though the data is only necessary for a short period.
EIP-4844 introduces the concept of "blob," which is data uploaded that will automatically be deleted after a specific period (usually from 1 to 3 months). More importantly, this data will not be directly accessible from the Environment Virtual Machine (EVM). This provides flexibility for rollups to add data without impacting the performance and cost of the Ethereum network.
With EIP-4844, Ethereum extends its capabilities and reduces transaction costs on Layer-2, creating favorable conditions for more efficient development and interaction on the platform.
3. Why does Blob reduce transaction fees on rollups?
Blob plays a crucial role in reducing transaction fees on Ethereum's rollup network. A rollup operates through two main phases: data and execution checks. In the data phase, transactions are processed and compressed before being sent to Ethereum.
Subsequently, in the execution check phase, mechanisms are applied to verify the accuracy of the data. To perform this step, the data needs to exist for a sufficient period for all parties to download and verify. However, it is not necessary to permanently store this data on the consensus layer.
This structure helps reduce storage and transaction processing fees for rollups, resulting in a cost reduction for users.
In summary, Danksharding is a scalability solution for Ethereum through the rollups network. If successfully implemented, Ethereum could support hundreds of rollup networks simultaneously without difficulty. The total number of transactions that can be processed per second could reach millions.
However, the full deployment process of Danksharding may take several years, and Proton-danksharding is just the first step.
For detailed technical insights into Proton-danksharding, please refer to the documentation prepared by Vitalik Buterin here.
4. Closing thoughts
Ethereum upgrade Cancun-Deneb (Dencun) signifies a significant step in the effort to improve Ethereum's scalability, efficiency, and user experience. By introducing proto-danksharding and laying the groundwork for future advancements, the Ethereum Cancun upgrade could be a leap forward in the fields of decentralized finance and blockchain technology.
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