Decun — How the Ethereum upgrade in 2024 has reshaped blockchain scalability

When the Ethereum network implemented the long-awaited Dencun upgrade in March 2024, the crypto community felt a real shift in the blockchain landscape. It was not just another technical upgrade — it was a milestone in the network’s multi-year journey to address one of its most pressing issues: unbearably high gas fees. So, what actually happened, and how did the Dencun upgrade change the situation? Let’s take a closer look.

Why the Dencun upgrade became a turning point

The Ethereum Cancun-Deneb upgrade, known as Dencun, was designed to solve the fundamental scalability problem. Instead of simply increasing the amount of data processed, engineers proposed a revolutionary approach — changing the very architecture of data storage through a mechanism called Proto-Danksharding.

The innovation centered around the concept of “blobs” (large data packets). Imagine that if previously each transaction was a building material that had to be carefully laid into the main network structure, now temporary data could be packed into separate, easily removable containers. This made data processing much more efficient.

How Proto-Danksharding improved user experience

After the Dencun upgrade was implemented in the first quarter of 2024, users noticed real changes in their wallets. According to L2fees data, which tracks expenses across various Layer-2 networks, fees began dropping by more than 90% compared to pre-upgrade levels.

At the time of the upgrade:

• Transferring ETH to Arbitrum cost about $0.24
• The same in Optimism was around $0.47
• On Polygon, it required $0.78

By the end of 2024, these figures had decreased somewhat, although fluctuations still depended on network activity. But the main point was clear — the trend was downward.

Revolution in the Layer-2 ecosystem

Layer-2 networks have always been a painful compromise: they promised speed and low cost but required users to move funds back and forth between layers. The Dencun upgrade allowed this compromise to work much better.

EIP-4844, a key technical element of the upgrade, directly targeted the main cost driver for Layer-2 networks. Instead of recording all transaction data on the Ethereum main chain in full, Proto-Danksharding allowed storing it in these very “blobs” — which are automatically deleted after a certain period. It’s like switching from mailing letters through postal service to using email: information is delivered, confirmed, but it doesn’t clutter your physical space.

Impact on developers and new opportunities

For decentralized application (dApp) creators, the upgrade opened new horizons. Thanks to an increase of 1 MB in data storage per block slot, developers gained the ability to work with complex scenarios that were previously economically unfeasible.

Data availability layers such as Celestia, EigenDA, and Avail — once experimental ideas — began to see practical use. Cheap and reliable off-chain data storage enabled the building of an ecosystem that previously seemed theoretical.

From Proto-Danksharding to full Danksharding: something bigger on the horizon

It’s important to understand that the Dencun upgrade was only the first step. Proto-Danksharding functions as a transitional phase, preparing the infrastructure for full Danksharding — a technical solution that will split the Ethereum network into multiple parallel chains.

While Proto-Danksharding addressed the cost of data storage, full Danksharding promises to increase Ethereum’s throughput from a modest 15 transactions per second to an impressive 1000+ TPS. These aren’t just numbers — it means Ethereum will be able to handle global financial flows at the same speed as centralized platforms.

Remaining challenges and risks

However, Ethereum’s path to scalability has not been without difficulties. After the Dencun upgrade, some unexpected interactions between system components emerged. Some smart contracts required modifications to optimally utilize the new features, and gas fees showed volatility during the transition period.

Additionally, the compatibility of all existing Layer-2 solutions remains an open question. While Arbitrum, Optimism, and Polygon quickly adapted, more experimental projects faced difficulties integrating the new mechanisms.

Looking ahead: Ethereum’s evolution continues

The Ethereum roadmap does not end with the Dencun upgrade. Future phases (Electra, Prague, upcoming updates) promise to introduce data structures like Verkle Trees, which will further optimize data storage and transmission.

The Dencun upgrade demonstrated a key principle of Ethereum development: instead of radical overhauls, architectural improvements are implemented gradually, tested, and then scaled. This approach has allowed the network to adapt to growing user and developer demands while maintaining stability and security.

For traders and crypto enthusiasts, the significance of the Dencun upgrade lies not only in reduced fees but also in confirming that Ethereum can evolve and solve critical issues. This instills confidence in the network’s long-term potential as the foundation of a global decentralized economy.