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A new Dencun update has been deployed to the #Ethereum(ETH) mainnet. The price of the second largest cryptocurrency by value changed little, increasing by 0.05% after the update. The update was implemented to reduce transaction fees.

Dencunc is the general name for the Ethereum network update, which includes two separate innovations - Deneb and Cancun.

Deneb is an update to the consensus layer on Ethereum (Beacon Chain) that includes block generation and includes a number of#EthereumImprovement Proposals (EIP).

Cancun is an update to the Ethereum execution layer, where transactions and smart contracts occur. It also implements several proposals to improve Ethereum, including some of the same ones at the consensus level, such as EIP-4788 and EIP-4844.

While all updates are important for the development of Ethereum, it is the proto-dunking that is getting the most attention. This has to do with scalability. This problem is not new and many solutions have been proposed. One of them is the division of the Ethereum network into several smaller blockchains, which will be protected by rotating validators. Data storage will become less expensive. However, the implementation of such a process in practice is quick and at the same time quite risky. This is why the Ethereum team is introducing proto-dunking. Essentially, it introduces similar changes, but does not implement dunking itself.

Dunking allows Level 2 solutions (L2, rollups) to add data to blocks more cheaply. The name refers to the names of the developers who proposed the idea: Protolambda and Dankrad Feist. Before the introduction of Dencunc, rollups had restrictions on the cost of the transaction: they could not be cheaper than a certain level.

Blobs have a lot to do with scalability. Most of the L2 fees come from storing data on the Ethereum mainnet. Blobs significantly reduce the amount of information transferred there, making the job faster and cheaper.

When the technology begins to fully function, ETH may be equal in distance to the main cryptocurrency $BTC , but this requires time and the implementation of additional solutions at the network level.

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