Ethereum EIP-4844 Full Explanation: Dencun Upgrade Timeline and Technological Innovation

On the path of Ethereum’s development, 2024 is a pivotal turning point. EIP-4844, as the core innovation of the Dencun upgrade, introduces Proto-Danksharding technology, fundamentally changing the way the Ethereum network handles data. This upgrade not only addresses the long-standing high fee issues plaguing Ethereum but also brings unprecedented scalability improvements to the entire blockchain ecosystem.

The Big Picture of the Dencun Upgrade: How EIP-4844 Reshapes Ethereum

The Ethereum Dencun upgrade (also known as the Cancun-Deneb upgrade) is a key milestone in Ethereum 2.0’s roadmap. EIP-4844 is the central proposal of this upgrade, introducing a new data structure called “blobs” to store Layer 2 transaction data. This innovation directly targets Ethereum’s long-standing network congestion and high fee problems.

Compared to traditional calldata storage methods, EIP-4844 provides temporary storage space through blobs, significantly reducing Layer 2 operation costs. These data are temporarily stored on the beacon chain and are automatically cleaned up by the network, ensuring a balance between blockchain efficiency and security.

EIP-4844 Timeline: From Testnet to Mainnet Launch

The deployment of EIP-4844 has gone through multiple phases, reflecting the Ethereum development team’s rigorous approach:

• January 17, 2024: Goerli testnet begins testing EIP-4844 features
• January 30, 2024: Sepolia testnet officially deployed
• February 7, 2024: Holesky testnet activated
• March 13, 2024: Dencun upgrade officially launched on Ethereum mainnet

After extensive testing, EIP-4844 has been stably operating on the mainnet for nearly two years. The successful rollout marks an important step toward Ethereum’s full Danksharding implementation.

Other Key Innovations Included in the Dencun Upgrade

In addition to Proto-Danksharding with EIP-4844, this upgrade also features several important improvements:

EIP-1153 – Introduces transient storage operation codes, allowing smart contracts to perform temporary data storage during execution, further reducing network fees.

EIP-4788 – Enhances interaction efficiency between execution layer and consensus layer by introducing the Beacon Block Root.

EIP-5656 – Launches the MCOPY opcode, enabling smart contracts to copy data within memory more efficiently.

EIP-6780 – Restricts the SELFDESTRUCT function, strengthening network security and stability.

Real-World Impact After Dencun Launch: Lower Fees and Performance Boosts

Sharp Drop in Layer 2 Fees

Since the launch of EIP-4844, transaction fees on Layer 2 solutions like Arbitrum and Optimism have dropped by over 90%. Some high-frequency trading transactions on Layer 2 now cost less than a cent, making microtransactions and DeFi applications feasible.

Significant Increase in Transaction Throughput

Before the upgrade, Ethereum mainnet’s transaction throughput was about 15 transactions per second. After Dencun, Layer 2 platforms now reach around 4,000 transactions per second. This enhancement allows the Ethereum ecosystem to support more complex applications.

Network Capacity Expansion

With the introduction of 1 MB blob data bandwidth per slot, Ethereum can handle more Layer 2 transactions while maintaining security and decentralization of the mainnet.

Milestones in Ethereum 2.0 Development

Launch of the Beacon Chain (December 1, 2020)

The Beacon Chain introduced proof-of-stake (PoS) for the first time, laying the foundation for Ethereum’s transition from proof-of-work.

The Historic Merge (September 15, 2022)

Ethereum mainnet merged with the Beacon Chain, reducing network energy consumption by over 99.5%, marking the official start of the PoS era.

Shanghai/Capella Upgrade (April 2023)

Enabled stakers to withdraw ETH rewards, encouraging broader participation in staking.

Completion of the Dencun Upgrade (March 2024)

Implementation of EIP-4844 made scalability a reality and laid the groundwork for full Danksharding.

From Proto-Danksharding to Full Danksharding: Future Outlook

EIP-4844 is just a transitional phase. Full Danksharding will partition the Ethereum network into 64 shards, each processing transactions independently. Compared to Proto-Danksharding’s temporary blob storage, the full solution will provide more persistent data availability, boosting scalability by over 10,000 times.

Practical Significance of Dencun for Developers and Users

New Opportunities for Developers

The lower-cost environment enabled by Proto-Danksharding allows developers to build more complex applications on Layer 2, including high-frequency trading systems, real-time gaming, and streaming services.

Fundamental Improvement in User Experience

The significant reduction in transaction costs makes small payments, NFT trading, and DeFi operations economically viable. Users no longer need to wait hours for transaction confirmations; Layer 2 networks now offer near-instant settlement.

Rapid Growth of Layer 2 Ecosystems

Following the EIP-4844 rollout, platforms like Arbitrum, Optimism, Starknet, and others have experienced explosive growth in users and developers, with total value locked (TVL) increasing by 500% over two years.

Challenges and Risks Facing the Dencun Upgrade

Technical Complexity

EIP-4844 involves complex cryptography and network protocol changes, posing potential vulnerabilities during the upgrade process.

Application Layer Adaptation

Some older smart contracts may need redeployment or upgrades to fully utilize new features, which could cause temporary compatibility issues.

Centralization Risks

The centralization of Layer 2 operators could become a new bottleneck, requiring further decentralization solutions.

Conclusion: How EIP-4844 Opens a New Era for Ethereum

The successful implementation of EIP-4844 demonstrates the Ethereum community’s determination to solve scalability issues. From proposal to mainnet deployment, this journey showcases the power of open collaboration. Dencun has become a reality, not just a promise for the future.

With the full deployment of Proto-Danksharding, Ethereum is gradually evolving into a foundational layer supporting global economic activity. EIP-4844 not only reduces transaction costs but also unlocks new possibilities for the Ethereum ecosystem. The ultimate realization of full Danksharding will make Ethereum truly the “world computer.”

For traders, developers, and investors, the Dencun upgrade represents a new opportunity window. The rapid growth of Layer 2 applications, the sharp decline in DeFi costs, and the emergence of new use cases all stem from the success of this key technological innovation.