Ethereum Finalizes 'Dencun' Upgrade, in Landmark Move to Reduce Data Fees
Summary
Ethereum activated the "Dencun" upgrade, a hard fork aimed at reducing data fees on layer-2 networks like Arbitrum and Polygon. The upgrade introduces "blobs" for storing data separately from regular transactions at a lower cost. It also implements "proto-danksharding" to make data storage for rollups more efficient and cheaper. This upgrade is an interim solution for Ethereum's high gas fees until the full implementation of sharding. Additionally, it is expected to benefit data availability (DA) layers and may lead to a fee war among layer-2 networks. The upgrade will also affect developers with eight other Ethereum Improvement Proposals (EIPs) included in the Dencun package.
