Ethereum Dencun Upgrade: What Game-Changing EIPs Hold for Crypto Market

In just over two days, the Ethereum Dencun upgrade is poised to usher in a wave of significant improvements to the Ethereum network. Among these enhancements, two Ethereum Improvement Proposals (EIPs) stand out as particularly game-changing: EIP-4844 (blobs/proto-danksharding) and EIP-4788 (enshrined oracle).

These EIPs represent a concerted effort to address key challenges facing Ethereum and to propel the network into a new era of efficiency and functionality within the broader crypto market.

EIP-4844: Blobs and Proto-Danksharding Revolutionize Ethereum’s Transaction Model

EIP-4844, colloquially known as blobs/proto-danksharding, promises to revolutionize Ethereum’s transaction model by introducing innovative solutions aimed at reducing fees for layer 2 solutions such as rollups. At its core, this proposal introduces a new transaction type referred to as “blobs,” which are specifically designed to operate within layer 2 solutions.

One of the primary advantages of blobs is their ability to exist within a separate fee market, independent of the fee spikes experienced by non-blob transactions on the primary Ethereum layer (L1). Additionally, blobs are engineered to expire after approximately 18 days, thereby minimizing the storage burden on Ethereum full nodes and preserving decentralization.

Moreover, the scalability potential of blobs is vast, as their number and size can be effortlessly increased with each subsequent hard fork, laying the foundation for future scalability enhancements such as full danksharding.

Also Read: XRP Whales Move 81 Mln Coins Amid New ATH Hype, What’s Happening?

EIP-4788: Enshrined Oracle Enhances Communication and Trust in Ethereum’s Staking Ecosystem

EIP-4788 introduces an enshrined oracle, representing a significant leap forward in enhancing communication between Ethereum’s execution and consensus layers. This improvement is particularly notable for its impact on staking pools, such as Rocket Pool, within the Ethereum ecosystem.

By facilitating trustless communication between these layers, the enshrined oracle eliminates the need for staking pools to rely on third-party oracles for crucial information transfer, thereby bolstering trust and reliability within Ethereum’s staking ecosystem. The implications of EIP-4788 extend far beyond staking, holding the potential to reshape various aspects of decentralized finance (DeFi) and blockchain technology as a whole.

Also Read: Arbitrum DAO Pulls Back $1.2 Million Help to Tornado Cash Citing Legal Concerns

The post Ethereum Dencun Upgrade: What Game-Changing EIPs Hold for Crypto Market appeared first on CoinGape.