News of Ethereum's Dencun upgrade is a hot topic these days. Because it is currently being said that if Ethereum's Dencun upgrade, Layer 2 based coins will become cheaper and the transaction process will be faster. After such an upgrade, the transaction process is expected to be much easier and also reduce transaction fees. Also it offers many benefits in between transaction fee and time. The upgrade enables Layer 2 solutions to store data in "blobs" instead of expensive call data.
Ethereum's Dencun upgrade is currently the hot topic of the moment and it went live yesterday. The transaction fees for Layer 2 based transactions are comparatively slightly higher. And this upgrade will play an important role in reducing transaction costs in the solution to this problem. Currently, Layer 2 has introduced a mechanism to reduce the transaction fees involved. And it batches and compresses transactions before sending them to the mainnet.
This upgrade will result in a significant reduction in transaction fees. As blockchain analyst Markov of Dune-based Tracker shared his opinion on this, he noted that the average cost of transactions will drop significantly upon scaling solution optimism. He noted that the average cost of these transactions has dropped to about 4 cents. This is currently a much lower cost, which is significantly lower than the recent average of around $1.4. He also noted that this has also resulted in a significant reduction in the average fee for Coinbase's Layer 2 solution base, which he notes has fallen from roughly $1.50 to 3 cents. And Arbitrum is no exception. In all these cases too the transaction fee has come down to 40 cents. Average fees for zkSync and Zora have also decreased.
Denkun has introduced Binary Large Objects (Blobs) along with lower transaction fees for upgraded transactions. And because of the inclusion of such facilities, it offers the convenience of associating large data chunks with regular transactions. And this data will connect blobs off-chain. And later they will be accessible. And it will take about three weeks for this data to become accessible. Then this data will be permanently saved which will be saved against the call data.
As such, Layer 2 based rollups can store data in blocks instead of expensive call data. Some are layer two based rollups such as Optimism, Arbitrum, and zkSync. These will also have such benefits in storing data. As a result, these layer-based rollups can process transactions at a lower cost. Rollups calculate transactions outside the Ethereum main chain and then bundle multiple transactions into a single transaction before submitting them to the main chain. Note that rollups require applying blobs manually So far, Base, Optimism, Arbitram, Zora, and zkSync have done so to Markov.
Importantly, this upgrade has resulted in a drastic reduction in transaction fees. It reveals that the blob mechanism ultimately reduces the transaction cost in the Layer 2 solution and will lead to a slide of about 90%. According to the decentralized prediction platform Polymarket, the price of a blob of the same size has been calculated and considered to be 0.001 ETH ($3.98). Another important point is that the news of the Denkun upgrade has yet to attract investors. Simply put, even after such an upgrade, investors could not increase interest in Rollup's native tokens. Which would presumably benefit the most from blob-bearing transactions. Anyway, to know more about this, you can read this news .
Posted Using InLeo Alpha
