Dencun: The Ethereum upgrade that revolutionized scalability in 2024

Ethereum’s dencun upgrade, executed in March 2024, marked a turning point in the technological evolution of the most important blockchain for smart contracts and decentralized applications. This milestone was not just another update but a qualitative leap that radically transformed how Ethereum operates, especially for users of Layer 2 solutions. After nearly two years of implementation, it’s time to analyze what truly changed with this upgrade and how it benefited the network.

The Anatomy of Dencun: Proto-Danksharding Explained

Ethereum Improvement Proposal (EIP) 4844, known as proto-danksharding, was the core of the Dencun upgrade. This innovation introduced a new temporary data storage mechanism called “blobs,” which revolutionized how Ethereum handles information without permanently burdening the blockchain.

What Are Blobs and Why Do They Matter

Proto-danksharding via blobs allowed the network to process large volumes of data temporarily. Unlike conventional storage that occupies permanent space, these data blocks are automatically purged after approximately 18 days. This architecture is particularly beneficial for Layer 2 solutions like Arbitrum and Optimism, which can now use blobs to publish their transaction data much more cost-effectively.

The Path Toward Full Danksharding

The Dencun upgrade represents an intermediate phase. Proto-danksharding lays the groundwork for the future implementation of full danksharding, which will split the Ethereum network into multiple specialized shards. Each shard will be able to process transactions and smart contracts independently, exponentially increasing the network’s total processing capacity.

Technical Improvements Beyond EIP-4844

While proto-danksharding captured attention, the Dencun upgrade included other significant optimizations:

EIP-1153 introduced transient storage operation codes, allowing smart contracts to use temporary memory during execution. This feature has proven to significantly reduce operational costs for complex dApps, directly improving application scalability.

EIP-4788 enhanced integration between the consensus layer (Beacon Chain) and the Ethereum execution layer, enabling more direct access to updated validation information. This smoother connection has strengthened operational security and protocol efficiency.

EIP-5656 optimized memory data copying operations through the new MCOPY operation code, reducing gas consumption in common smart contract operations.

EIP-6780 restricted the AUTODESTROY command in contracts, limiting potential attack vectors and improving overall network stability.

The Real Impact of the Dencun Upgrade on Costs and Speed

Dramatic Reduction in Layer 2 Fees

The most immediate benefit of the Dencun upgrade was the explosive reduction of gas fees in Layer 2 solutions. Before implementation, a Layer 2 transaction typically cost between $0.10 and $1. After the Dencun upgrade, those same costs dropped to $0.001 or less, representing a reduction of 100 to 1,000 times in many cases.

This transformation made Ethereum finally competitive with low-cost blockchains like Solana and Polygon for most everyday users, without sacrificing the security of periodic mainnet settlements.

Observed Performance Improvements

The Dencun upgrade contributed to a significant increase in Ethereum’s effective throughput. While the mainnet continues processing about 15 transactions per second, the Layer 2 ecosystem can now handle thousands of transactions per second economically. Some optimistic rollups reported peaks of 4,000 TPS after the Dencun upgrade.

Implementation Timeline: From Testnet to Mainnet

The Dencun upgrade followed a carefully coordinated schedule. Testing began on the Goerli testnet on January 17, 2024, followed by Sepolia on January 30, and Holesky on February 7. This meticulous process allowed developers to identify and resolve issues before the mainnet launch on March 13, 2024.

The deployment occurred without significant incidents, demonstrating the maturity of the coordination process among Ethereum developers and network validators.

Ethereum 2.0 in Perspective: Dencun as a Milestone

The Transformative Trajectory of Ethereum

The Dencun upgrade is part of a broader trajectory of Ethereum 2.0 improvements. Before Dencun came the Beacon Chain in December 2020, which introduced proof-of-stake parallel to Ethereum. Subsequently, The Merge in September 2022 definitively transitioned Ethereum from proof-of-work to proof-of-stake, reducing energy consumption by over 99.5%.

The Shanghai upgrade in April 2023 enabled liquid staking, democratizing participation in the network. Now, with the Dencun upgrade already implemented, Ethereum has reached a stage of scalability optimization that directly benefits millions of users.

Use Cases Transformed by the Dencun Upgrade

Low-Cost DeFi

Decentralized finance protocols can now operate on Layer 2 with marginal fees. Users who previously avoided small transactions due to prohibitive costs can now actively participate in farming, swaps, and lending.

Payments and Transfers

Payment solutions built on Ethereum and Layer 2 have finally become competitive with traditional payment systems in terms of cost. International remittances, micropayments, and commercial transactions found in the Dencun upgrade the economic viability they lacked.

Social and Gaming Applications

Blockchain games and decentralized social apps requiring thousands of microtransactions daily found in the Dencun upgrade the technical and economic environment to thrive. Platforms like Zora and other NFT marketplaces experienced activity surges after implementation.

Risks and Challenges of the Transition

Although the Dencun upgrade was successfully implemented, the transition was not without challenges. Some existing smart contracts required optimization to fully leverage blob capabilities. The learning curve for developers also involved an adjustment period.

Additionally, the automatic purge of blob data after 18 days requires applications to implement external archiving strategies if full historical data access is needed. This architecture introduced new design considerations that some projects initially underestimated.

Toward Full Danksharding: The Next Horizon

With the Dencun upgrade now consolidated and operating smoothly after nearly two years, the Ethereum community is moving toward the next phase: full danksharding. This evolution will fully shard the network into independent shards, further multiplying processing capacity.

The infrastructure established by proto-danksharding in the Dencun upgrade provides the technical and conceptual foundation for this implementation. Developers are already working on specifications and prototypes for full sharding, with expectations of initial deployments in the coming years.

Final Reflection: The Dencun Upgrade as a Breakthrough

Ethereum’s Dencun upgrade in 2024 represented a definitive break between the slow, expensive Ethereum of 2023 and a finally accessible and scalable network. For traders, developers, and investors, Dencun removed one of the main barriers limiting mass adoption.

The order-of-magnitude reduction in transaction costs, the clear performance improvements in Layer 2, and the smoothly coordinated implementation of the Dencun upgrade demonstrated Ethereum’s maturity and technical capability. As the network continues evolving toward full danksharding, the Dencun upgrade will be remembered as the moment Ethereum finally fulfilled its promise of being a scalable and accessible platform for global decentralized applications.