Dencun: How a revolutionary upgrade transformed the Ethereum architecture

Ethereum continues to evolve, and one of the key milestones in this development was the Dencun upgrade, which officially launched in March 2024. This upgrade not only fixed some issues—it fundamentally changed the network’s approach to scalability and transaction costs. Let’s explore why crypto community professionals consider Dencun a turning point in blockchain development.

Why has Dencun become so highly anticipated?

The Ethereum Cancun-Deneb upgrade (shortened to Dencun) addressed a pressing problem faced by users: high fees on Layer-2 networks. Although solutions like Arbitrum, Optimism, and Polygon already offered cheaper transactions, they were still more expensive than many users would like.

The key feature of the upgrade is the implementation of Proto-Danksharding via EIP-4844. This technology introduces the concept of “blobs”—special data packets with a fixed storage size (about 1 MB per block). Importantly, blobs are temporary: they are stored briefly and then deleted. This radically reduced data storage costs for Layer-2 solutions.

How does Proto-Danksharding change Layer-2 economics?

Before Dencun, Layer-2 solutions worked like this: they collected transaction batches, compressed them, and published them to the Ethereum mainnet as regular data. This was expensive—each byte of information required gas fees.

With Proto-Danksharding, the logic changed. Layer-2 networks can now use special data slots that are cheaper than regular transactions. Analysts estimate this could reduce fees by 10 to 100 times. In practice, the reduction was noticeable: previously, transferring ETH on Arbitrum cost around $0.24, but after the update, prices dropped even further.

Other improvements in Dencun: a full suite of optimizations

In addition to Proto-Danksharding, the upgrade included a range of EIPs (Ethereum Improvement Proposals):

EIP-1153 — new opcodes for temporary data storage during smart contract execution. This made programs more efficient, reducing overall gas costs.

EIP-4788 — consensus-level improvements. Adding Beacon Block Root provided direct access to consensus layer information, which is critical for various applications.

EIP-5656 — a new MCOPY opcode for faster in-memory data copying. A micro-optimization, but at scale—millions of operations—this yields noticeable benefits.

EIP-6493 and EIP-6780 — changes to validator block selection mechanisms and restrictions on the SELFDESTRUCT opcode to enhance network security.

This was just the first step: the path toward full Danksharding

An important point: Proto-Danksharding is not the final solution but a transitional phase. It prepares the ground for full Danksharding, which will split Ethereum into multiple parallel chains (shards), each processing transactions independently.

Currently, Ethereum processes about 15 transactions per second on the main layer. After full Danksharding, it could potentially reach over 1000 TPS. For comparison: VISA handles around 24,000 TPS, so even 1000 TPS would be a significant progress.

Impact on the developer and user ecosystem

Since the launch of Dencun in March 2024, it’s clear that the upgrade has significantly eased the experience for both regular users and developers.

For traders and users: transactions on Layer-2 networks became much cheaper. Previously, a small swap on Optimism could cost $0.92; now, prices have dropped to cents. This opens the door for microtransactions and smaller positions.

For developers: the ability to store more data on the blockchain at the same cost has improved. Blobs of about 1 MB per slot allow for creating more complex applications without fear of skyrocketing fees.

For data availability (DA) projects: Celestia, EigenDA, and Avail gained a new competitor. Part of the market that previously required a separate DA layer can now leverage Ethereum’s built-in capabilities.

Long-term prospects: what’s next?

The Ethereum community is already working on the next upgrade, tentatively called Electra + Prague (Petra). This update focuses on implementing Verkle Trees, a more efficient data structure for storing state.

Full Danksharding remains the goal, but the path there is long. Each upgrade like Dencun addresses specific issues and lays the groundwork for future innovations.

Potential risks and challenges

It’s important to acknowledge possible difficulties. Transitioning to new mechanisms always involves technical risks:

• Compatibility with existing applications — not all smart contracts can immediately adapt to new conditions.
• Temporary fee fluctuations — during network adaptation, load spikes may occur.
• Validator centralization risks — ensuring that network evolution does not lead to power concentration among large players.

Final assessment: Dencun as a pivotal moment

Dencun is not a revolution overnight but a crucial step in Ethereum’s long-term transformation. The upgrade has proven that Proto-Danksharding concepts work in practice and has laid the foundation for future scaling.

Within two years of its launch (2024–2026), it’s clear that the upgrade has truly changed Layer-2 economics, making Ethereum more practical for everyday use. This has created conditions for increased user adoption and the development of new applications within the ecosystem.

Ethereum’s journey toward full scalability continues, and Dencun is not the end but a milestone on this path.