Dencum: The Ethereum Transformation That Promises to Revolutionize Scalability in 2024

Ethereum is one step away from its most ambitious upgrade since The Merge. The network’s next evolution, dubbed Cancun-Deneb (or simply Dencun), centers around the implementation of Proto-Danksharding – an innovation that promises to multiply the network’s capacity by 100 to 1,000 times. But what does this mean in practice? And why is the entire crypto community watching this upgrade?

The test schedule has already begun: what to expect in 2024

According to the official Ethereum repository on GitHub, the Dencun upgrade is already in rigorous testing phases. The announced timeline shows:

• Testnet Goerli: January 17
• Testnet Sepolia: January 30
• Testnet Holesky: February 7

At the time of writing, Devnet 12 is testing the core components. This sequence of tests on the Mainnet represents a strategic shift – the upgrade was originally scheduled for Q4 2023 but was postponed after discussions among Ethereum developers during the All Core Developer Consensus in November 2023.

Proto-Danksharding explained: how does EIP-4844 work

At the heart of the Dencun upgrade is Ethereum Improvement Proposal 4844 (EIP-4844). This innovation introduces a new type of transaction capable of handling “blobs” of data – information packets stored temporarily on the Beacon Chain that do not need to be permanently accessible.

The key difference? Unlike traditional data stored in smart contracts, blobs expire after a set period. This drastically reduces the required storage space and, consequently, gas fees. Ethereum Layer 2 networks are expected to see their fees reduced by 10 to 100 times after implementation.

Other technical improvements accompanying Dencun

The upgrade is not limited to Proto-Danksharding alone. Several EIPs work together:

The EIP-1153 introduces transient memory opcodes, allowing temporary storage during smart contract execution – an approach that significantly reduces operational costs.

The EIP-4788 strengthens the consensus layer by providing direct access to updated information via Beacon Block Root, improving operational efficiency and communication between layers.

The EIP-5656 introduces the new opcode MCOPY, optimizing data copying in memory during contract execution.

The EIP-6780 restricts the use of the SELFDESTRUCT function, eliminating a vulnerability vector that raised security concerns.

The tangible benefits for the network and its users

When fully implemented, the Dencun upgrade will bring measurable transformations:

Processing speed: Ethereum transaction throughput will jump from about 15 transactions per second (TPS) to approximately 1,000 TPS. This capacity multiplication will enable the network to support much larger volumes without congestion.

Lower costs: Gas fees will decrease substantially. The declared goal is to bring fees below US$0.001, making simple operations accessible even for users with limited budgets.

Enhanced security: Restrictions on SELFDESTRUCT and new consensus protocols will strengthen the network against sophisticated attacks. Ethereum becomes even more resilient.

Data efficiency: For the first time, the blockchain will implement a functional sharding mechanism with 1 MB blobs per slot, significantly expanding storage and data access possibilities for decentralized applications.

Why Dencun is crucial for Ethereum’s future

The Dencun upgrade is not just a technical enhancement – it’s a strategic step in Ethereum 2.0’s roadmap. After The Merge (September 2022) and the Shanghai/Capella upgrade (April 2023), Ethereum continues its journey toward a truly scalable platform.

Proto-Danksharding acts as a springboard. It establishes the infrastructure and validates concepts that will enable the full implementation of Danksharding – where the network will be divided into multiple independent shards, each processing transactions in parallel.

Investors and Layer 2 projects are particularly attentive. Protocols like Arbitrum, Optimism, and Starknet will depend on the data availability improvements brought by Proto-Danksharding. For them, Dencun represents unlocking new growth.

Transition challenges: what to monitor

Although promising, the Dencun upgrade is not without risks. The involved technical complexity could introduce unexpected vulnerabilities. Transitioning to new consensus and data storage mechanisms may create incompatibilities with existing smart contracts.

During the transition phase, some users may experience temporary disruptions. Developers will need to validate their applications with the new standards. It is crucial for the community to stay informed and prepared to mitigate potential issues.

The next chapter: full Danksharding

Dencun is just the prelude. After its successful implementation, Ethereum will move on to Full Danksharding. In this phase, the network will be fragmented into dozens of shards, revolutionizing how information is processed.

This is the path Ethereum is taking: incrementally testing and validating each innovation before scaling to the next level. Dencun marks the beginning of this next stage.

Conclusion: Ethereum evolving

Ethereum 2.0’s Cancun-Deneb upgrade marks a historic moment for the platform. With the implementation of Proto-Danksharding via EIP-4844 and the complementary improvements, Ethereum is ready for a qualitative leap in scalability, security, and efficiency.

For traders and investors, Dencun opens new opportunities. For users, it means faster and cheaper transactions. For developers, it offers more powerful tools to build the decentralized future.

The crypto market is watching this transformation closely. As Ethereum evolves with Dencun, the entire ecosystem responds. This is a development that will shape the next chapter of blockchain adoption.