Update “Dencun” Launched on the Second Ethereum Testnet: Holesky Next on February 7th
The long-awaited “Dencun” update of the Ethereum blockchain has been fully activated on the Sepolia testnet, marking an important step forward for scalability and reducing transaction costs. This update introduces the concept of “proto-danksharding,” which is crucial for second-level chains. The next implementation of the update will take place on the Holesky testnet next week, followed by the launch on the mainnet.
Details of the Dencun Update
The Dencun update was successfully launched on the Sepolia testnet, concluding in just 19 minutes. This is part of the Ethereum roadmap to test its functionalities in different networks. The previous update, Shapella, allowed unstaking locked ether in the ETH 2.0 contract. Dencun introduces proto-danksharding, which improves efficiency and scalability of second-layer rollups. It also introduces a new type of transaction called a “blob” to increase data carried by blocks.
Impact on ETH Price
The completion of Dencun will support the growth of Ethereum’s layer 2 chains and enhance scalability and cost-effectiveness. Although it may not directly impact ETH’s price movement, it strengthens Ethereum’s infrastructure and increases its intrinsic value. The expansion of layer 2 with Dencun allows for faster development and competitive transaction costs compared to alternative networks. This progress positions Ethereum as a safe environment for smart contracts and prepares it for future challenges.
Hot Take: Bright Future for ETH After Dencun
The successful launch of Dencun on Sepolia is highly positive and paves the way for significant improvements in Ethereum’s chain. If Ethereum becomes more performant than its competitors, the value of ETH will become invaluable as the means to power a decentralized virtual machine. This update signifies a bright future for ETH, and we can expect Ethereum to continue growing and evolving.
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