Ethereum is one of the busiest and most important blockchain networks, which is updated regularly. Updates to the Ethereum network often serve an overarching goal, which is to increase the scalability and efficiency of the network. Denkon update is also one of the updates that have been done in line with the better performance of the network.

Experts believe that Ethereum updates will continue until at least 2027 so that the network becomes a completely decentralized and perfect platform. In the meantime, the Dencun update was one of the most important Ethereum updates. But what effect does this update have on the Ethereum network and its governance token? In the rest of the article, we have discussed the answer to this question, the introduction of the important Denkun update and the changes it brings to the Ethereum network.

What is Dencun update?

The Dencun update of Ethereum is the next hard fork of this network, which is currently running on the Ethereum test network (testnet). The Dancun update is two simultaneous updates, including: a Consensus Layer (CL) upgrade and an Execution Layer (EL) upgrade.

The CL update, which takes its name (Consensus layer) from the brightest star in the constellation Pisces, focuses on improving network performance and scalability. This update includes changes to Ethereum's consensus mechanism called Proof of Stake (PoS).

The EL upgrade, which takes its name (Execution layer) from the Devcon 3 conference in 2017, focuses on improving network performance and usability. This upgrade includes changes to the Ethereum code, such as increasing the block size and improving compatibility with decentralized applications (dApps).

CL upgrade:

The Proof of Stake (PoS) consensus mechanism, which replaces the Proof of Work (PoW) consensus mechanism, relies on ownership of Ethereum instead of computing power. This makes the Ethereum network more efficient and scalable. The CL upgrade also includes changes to the way validators are selected on the Ethereum network, making the Ethereum network more resistant to attacks.

EL upgrade:

The EL upgrade focuses on improving the performance and usability of the Ethereum network. This upgrade includes changes to the Ethereum code, such as: increasing the block size and improving compatibility with decentralized applications (dApps). Increasing the block size allows more transactions to be placed in each block and makes the network more efficient and faster. Improved compatibility with decentralized applications (dApps) makes it easier and faster for dApp developers to launch their applications on the Ethereum network. Ethereum's Dencun update is an important upgrade that can make the Ethereum network more efficient, scalable, and usable.

EIP-4844 in Duncun update

EIP-4844 is actually the heart of the Dencun update, also known as Proto-Danksharding. This proposal is supposed to improve the scalability of the network by increasing the data storage space. By implementing EIP-4844, more space is provided for the original transaction data. In this way, the fees for tier two roll-ups will be reduced. In the other part of the article, we will talk about this EIP in detail.

Other Dencun update EIPs

In the following, we will introduce and review each of the EIPs:

EIP-1234: To be implemented in the Ethereum implementation layer. It adjusts block rewards, delays the hard bomb, and facilitates a secure transition to Ethereum 2.

EIP-2322: Implemented on consensus layer as part of Deneb and makes PoS algorithm more powerful.

EIP-1153: Reduces the cost of storing information on the blockchain and optimizes the use of its space.

EIP-4788: Optimizes the design of bridges and stacking pools. EIP-5656: Add minor changes to the Ethereum Virtual Machine (EVM) code to optimize its performance.

EIP-6780: Implemented to deal with termination codes to smart contracts.

EIP-1559: Provides a new and dynamic fee structure that is based on a base fee but dynamic based on supply and demand in the network. This structure reduces congestion and eases fee estimation.

EIP-2929: Increases ecosystem security by increasing the cost of malicious operations.

EIP-2537: Enhances privacy security and scalability through an Ethereum-specific opcode for smart contracts and elliptic curve signature verification.

The role of Danksharding in the Dencun update

Dunk sharding is the third and final stage of Ethereum 2 or Serenity upgrade after Beacon and Merge chains. Conventional sharding breaks the blockchain into a number of smaller chains. But this mechanism improves network scalability not by increasing transactions, but by increasing data access. This layer solution combines two blockchain transactions and processes them off-chain.

To achieve this goal, a new format called Blob Carrying Transactions is used instead of call data to transfer rollup data in Ethereum. Blob is obtained from the combination of initial letters of Large Binary Object. The new format separates most of the transaction data volume from the hash data or TX Data and sends it as a separate attached transaction. This attached file is a type of Blob data. Thus, more space is provided for TX data in rollup protocols. The size of each blob is 125 KB on average. TX data is also allocated a separate space from the block.

The task of reading and confirming the Blob is not on Ethereum; Rather, it will be in charge of the DankSharding protocol. This protocol uses a set of rules called KZG for this purpose. A zero knowledge polynomial scheme that, like other ZK systems, allows for transaction confirmation without the need to reveal its entire content.

The existence of Danksharding in the Dencun update, removes the responsibility of interpreting and confirming Blobs from EVM, and as a result, reduces fee costs and increases transaction speed. Because basically, a significant part of the data overhead is reduced in the transfer from Rollup to Ethereum.

This article continues…….