A recent achievement in the Ethereum community involves the successful testing of the Dencon update, introducing the Proto-Danksharding technology on the Sepoila testnet.
While the scheduled continuation of testing on the Holesky network is set for February 7, 2024, the exact date for the mainnet launch remains uncertain.
Despite the pending launch, this update is considered significant as it has the potential to significantly reduce Ethereum transaction costs and accelerate the network while maintaining compatibility with existing layer-two blockchains.
Developer Successfully Executes Test
The success of the Dencon update, featuring the Proto-Danksharding mechanism, was announced by the Ethereum development team via a tweet on Twitter (X).
It was clarified that the update was successfully deployed on the Sepoila testnet on January 31, 2024, at 07:00 AM WITA. The Dencon update introduces two new mechanisms: Proto-Danksharding and Blobs, which are part of EIP-4844.
The Proto-Danksharding mechanism, named after its developers Protolambda and Dankrad Feist, aims to enhance Ethereum transaction efficiency with the support of existing layer-two blockchains.
It introduces a method to make data retrieval and transmission by layer-two blockchains more cost-effective, thereby reducing overall transaction costs for users.
Additionally, the mechanism introduces Blobs, a way to temporarily group individual transactions for distribution to nodes or validators.
This facilitates the storage of data only on the blockchain, eliminating the need for prolonged data storage on nodes and validators, which currently contributes to higher transaction costs.
While data is removed from nodes, all transaction data in the form of smart contracts is still recorded on the Ethereum blockchain.
The Blobs mechanism streamlines the process, ensuring data is not retained on nodes or validators, improving efficiency and reducing overall storage costs for the connected blockchain.
One of the nodes actively testing this update is Nethermind, indicating widespread engagement within the Ethereum ecosystem, not limited to developers alone.
Benefits of Proto-Danksharding
Through the implementation of Blobs in Proto-Danksharding, a significant decrease in transaction costs is anticipated. This results from the more cost-effective communication between Ethereum and layer-two blockchains, ultimately leading to lower transaction costs for users.
Moreover, this mechanism is predicted to increase Ethereum transaction speeds to up to 100,000 transactions per second. This achievement is remarkable considering the current average transaction speed of 50 transactions per second.
If successfully implemented, this enhancement could restore Ethereum’s prominence, addressing two critical issues that have hindered its adoption: transaction costs and transaction speed. With these improvements, Ethereum may regain competitiveness against other blockchains, such as Solana, which have surpassed it in scalability.
Unfortunately, the official launch date for this update on the Ethereum mainnet remains unknown. Ethereum will continue testing on the Holesky network, scheduled for February 7, 2024, as the community eagerly awaits further developments.