Ethereum is set to undergo a significant upgrade named Dencun this Wednesday, which is anticipated to reduce gas fees for scaling networks.
The upgrade, which combines elements from previous upgrades Cancun and Deneb, aims to improve the blockchain’s scalability, security, and user experience.
The Dencun hard fork will introduce nine Ethereum Improvement Proposals (EIPs), including proto-danksharding with EIP-4844, which is expected to lower transaction fees and increase processing speed.
The Dencun upgrade follows roughly a year after the Shanghai upgrade and is considered one of the most significant changes to the Ethereum network since the Merge.
It is designed to enhance the network’s layer-2 scaling solutions, which are platforms built on top of the Ethereum blockchain to increase its transaction capacity
The upgrade will not directly affect mainnet gas fees but is expected to encourage more users to utilize layer-2 networks.
The Dencun upgrade also includes EIP-7044, which allows validators and stakers to set conditions for exiting their staking positions, providing additional security and flexibility.