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Ethereum Could Top $14,000 Next Year Alongside Bitcoin Boom: Standard Chartered – Decrypt

British multinational Standard Chartered isnt just bullish on BitcoinEthereum is also going to the moon, its analysts say.

A Monday report from the bank claimed that the second-biggest digital asset could hit $8,000 by the end of this year, and $14,000 is possible by the time 2025 is up.

If, that is, spot Ethereum exchange-traded funds (ETFs) get approved, Geoffrey Kendrick, head of forex and crypto research at the firm, said in the note.

The price of Ethereumis currently hovering slightly above $3,500 per coin, CoinGecko data shows.

Several high-profile fund managers have filed paperwork with the Securities and Exchange Commission (SEC) to release Ethereum ETFs. Such investment vehicles would expose traditional investors to the cryptocurrency via shares that trade on a stock exchange.

Kendrick wrote in the note that the bank expects the ETFs to get the green light from the SEC by the summer.

Ethereum is currently between two important events that we see driving price upside, wrote Kendrick. It has just had a structurally significant upgrade, and U.S. regulatory approval of ETH ETFs is expected in May.

Kendrick also said that the networks recent Dencun upgrade could be the reason for Ethereum shooting up rapidly.

The network behind the second-biggest cryptocurrency was upgraded last week. Developers say the improvement will make transaction fees on the blockchain super cheap.

Kendrick added that the upgrade and lower costs on the network make Ethereum more competitive.

Standard Chartered said in a different research note Monday that Bitcoin could hit $150,000 per coin by the end of this year if the newly approved ETFs continue to be popular.

In January, the U.S. Securities and Exchange Commission in January approved 11 of the investment vehicles.

They have so far been hugely popular with investorsand the massive inflows have pushed the price of Bitcoin up significantly.

Edited by Ryan Ozawa.

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Ethereum Could Top $14,000 Next Year Alongside Bitcoin Boom: Standard Chartered - Decrypt

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SOL From $9 to $200: Can Solana Repeat Ethereum’s 2020-2021 Rally? – TradingView

Key points:

Amidst Bitcoins ongoing cryptocurrency market boom Solana (SOL) has climbed to $204 with a staggering 2000% growth from $9 at the beginning of 2023. An independent analyst with the X handle Hansolar speculated that Solana could repeat the great ETH surge of 2020-2021 bull market.

When SOL takeoff?

SOL

Assuming SOL is the new ETH this cycle, I think SOL really takes off later than BTC and ETH.

Previously ETH took off when BTC actually broke out into ATHs.

It's then when retail buys into SOL as the high beta catch up play.

Currently SOL is at around pic.twitter.com/mwyhJ5DO6m

Hansolar has sparked optimism in the community suggesting that Solanas price could soar to $600, drawing parallels to Ethereums remarkable ascent during the previous crypto market bull run. Ethereums price surged from around $85 to a staggering $4,935 following Bitcoins uptrend in 2020-2021, a surge of approximately 1,400%.

Bitcoin is set for an extended bull run above its November 2021 ATH of $69,000 and Hansolar believes Solana stands to benefit similarly.

Assuming SOL is the new ETH this cycle, I think SOL takes off later than BTC and ETH. Previously ETH took off when BTC broke out into ATHs.

The fundamentals of Solana indicate a promising outlook. The total-value-locked (TVL) across its ecosystem has reached 20.51 million SOL, its highest level since January 2023. Solana also surpassed Ethereum and other Ethereum Virtual Machine (EVM)-based Layer-2 solutions in 24-hour transaction volume, with Solanas $3.654 billion outdoing Ethereums $2.397 billion.

Solana broke the $200 band earlier on Monday morning. With a bullish outlook, the chart indicates $257 as its next target.

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SOL From $9 to $200: Can Solana Repeat Ethereum's 2020-2021 Rally? - TradingView

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What Will Come First for ETH: $3,000 or $4,000? (Ethereum Price Analysis) – CryptoPotato

Our website is a comprehensive guide to digital currency investing & trading.Here are a few suggestions to get started, and get the most from us:

Begin with Bitcoin for Beginners.

Get the edge with our exclusive Bitcoin and cryptoguides.

Check out our Crypto YouTube channel, that includes beginners and advanced tutorial videos and market updates. Dont forget to subscribe!

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What Will Come First for ETH: $3,000 or $4,000? (Ethereum Price Analysis) - CryptoPotato

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Ethereum (ETH) Price Prediction For 2023, 2025 And 2030 Forbes Advisor INDIA – Forbes

In the world of virtual or digital assets, people often talk most about the trending and most popular cryptocurrency Bitcoin, but also closely keep an eye on Ethereum which is regarded as the worlds second largest cryptocurrency. There is no doubt that ETH is overshadowed by the worlds largest cryptocurrency BTC, but surely it has plenty to offer.

Crypto enthusiasts generally look at ETH as much more than just a digital token and believe it has a huge intrinsic value that offers unique earning opportunities for its investors.

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Lets dig deep into this guide to see what Ethereums future holds and whether it will continue to gain momentum in the coming years.

The worlds largest altcoin and the second-largest cryptocurrency, Ethereum, holds significance beyond being just a crypto token. It is widely recognized outside the crypto community for its advanced features and innovative blockchain solutions.

ETH operates as an open-source blockchain with smart contract functionality, primarily applied in the realm of decentralized finance (DeFi). Ethereum functions more like a network that is continually updated and maintained by validators who receive ETH as compensation for their contributions and efforts.

Many experts envision ETH reaching a valuation of $40,000 by 2030. While this might seem ambitious, it is not entirely implausible. Several compelling factors, such as its comprehensive market strategy, unique model, scalability solutions, and leadership in various decentralized applications, have positioned ETH at the forefront of the cryptocurrency landscape.

Ethereum has played a vital role in expanding blockchain technology, offering blockchain projects, faster transactions, enhanced efficiency and decentralized applications to industries across the globe. Lets take a look at the key use cases of ETH which are extensive and expanding at a very fast pace:

In short, there are many sectors in which Ethereum is creating value and offering utility. Industries from entertainment to real estate and even the healthcare sector, are creating apps and tools based on the blockchain solutions provided by ETH.

To understand where Ethereum will go next and to gain a better understanding of its forecast, you need to first comprehend its unique model, which is unlike other cryptocurrencies.

The network began its operation by using a consensus mechanism which initially involved proof-of-work, but in 2022 it switched to proof-of-stake. The PoS consensus mechanism is considered to be extra secure which tends to use less energy and is much more efficient for implementing scaling solutions as compared to the previous model.

The validators are allowed to stake capital in the form of Ethereum in the current model and join the network where this stake ETH acts as collateral. Once it is activated, validators receive new blocks from their peers on the ETH network, then they are responsible for sending it out to other nodes on the network.

Furthermore, validator nodes vote on the validity of a new block of transactions, thus it collectively ensures that new blocks are authentic and in force before adding them permanently to the main blockchain. Then, out of these nodes, one node is selected as the block proposer for the current time slot, which is highly responsible for building the new block of transactions.

A PoS is much better than PoW, as it does not use heavy computational power to solve a riddle. But, in the PoS system, the node validates the new transactions itself and stakes its value as collateral. These nodes then run competently to avoid losing that collateral.

With the merge now complete after years of hard work, Ethereums transition to PoS is finally active. Now with this crucial change, the Ethereum network instead of using miners started to use validators to approve, create and add blocks to the blockchain.

Ethereum holds a bright future as it is not just a transactional currency but eventually, it is on the path of establishing itself as a store of value for those entities which are looking to optimize their wealth. ETH functions very well with DApps, NFTs, smart contracts, and DeFi and the list keeps growing every year.

As long as the network keeps becoming stronger and the ETH team continues to develop innovative features, its investors will likely continue to grow in the years to come. Lets check out the long-term price predictions of Ethereum.

As of March 13, 2024, Ethereum is trading at $4,053, boasting a market capitalization of $486.33 billion. The currency has exhibited significant growth following the Shapella upgrade in April 2023, experiencing a substantial increase from $2,100 to $4,000. The ongoing interest in Spot Bitcoin ETFs, spurring anticipation Ethereum ETFs may also get an approval, the Bitcoin halving event and the Dencun upgrade that is live at around 7:30 PM IST are factors that have fanned the growth of ETH.

The average trading price for Ethereum is anticipated to be around $4,000, with the potential to surpass its all-time high by the end of the month.

Read more about the Dencun upgrade: Why is Ethereum Going Up Today?

According to Cryptonewz, by the end of the current year 2024, ETH will touch $5,000. By the year 2025, Ethereum is expected to reach the maximum level of $6,500 with a minimum of $ 4,500 and an average of $5,500. And by the year 2030, it is expected that it may go up to a maximum of $20,500.

The current year will witness the Dencun upgrade, which is anticipated to positively boost the value of ETH. Also, Bitcoin Halving can also be a contributing element to the growth of the ETH trading value. If ETH keeps on growing, it has the potential to overcome its all-time high.

According to the CoinDCX blog, it is anticipated that 2024- a bullish year-end may lay a firm foundation for ETHs upward movement. The upswing could intensify, potentially pushing prices to surpass the crucial $10,000 and setting a new all-time high. But, bearish activity could increase as these levels are breached leading to promoting a modest pullback. By the year-end, the pullback will witness a downtrend and eventually the year will close in the range of $5,000.

At the beginning of the year 2030, ETH price could reclaim its position of $10,000 and probably above the level, establishing a robust upward trend. ETH might even bypass this all-time high of around $12,000 levels and set a new record. But, again after reaching this peak, a crucial pullback might ensue. The year for ETH will reflect the dynamic interplay of encompassing bullish surges, market forces and bearish adjustments. By the end of the year, it might range around $9,000 to $9,500.

Given the highly volatile nature of the crypto market, various possibilities exist in the realm of cryptocurrencies, including the potential for Ethereum to surpass Bitcoin. As witnessed in 2021, ETH outperformed BTC, gaining nearly 400% compared to Bitcoins 66%.

Experts acknowledge that due to several use cases and its unique blockchain, Ethereum has a stable future, and there is a chance it may perform exceptionally well compared to Bitcoin. However, it is considered highly unlikely for Ethereum to surpass the price of Bitcoin. Nevertheless, ETH has the potential to reach a comparable market capitalization with BTC, notably due to its uncapped supply, unlike Bitcoin.

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Several crypto experts have analyzed the performance of Ethereum since its inception and knowing its capabilities they strongly believe that ETH is here to stay because of its firm fundamentals and potentiality.

The continuous growth of Ethereum and its constant upgrades has led many to predict that this year 2024 and upcoming years will be great for the token as rising confidence in the technology and blockchain solutions will surely let ETH to the moon and investors holding ETH for long will not be wrecked.

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Ethereum (ETH) Price Prediction For 2023, 2025 And 2030 Forbes Advisor INDIA - Forbes

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Solana Tops Ethereum in Volume: Is This the Real Flippening? – CCN.com

Key Takeaways

Solanas performance is making headlines as it has outpaced Ethereum in terms of trading volume. Users associate flippening with a hypothetical scenario where Ethereum will surpass Bitcoin in terms of market capitalization. Is the ETH competitor signaling a shift in dominance before that happens?

Solanas trading volumes and network activity are competing to be on the top. Market data has revealed that Solana has seen a dramatic increase in daily active addresses, surpassing every other blockchain in this metric. The uptick in activity is largely attributed to the widespread interest in memecoins. Meanwhile, the on-chain volume for Solana has exceeded that of Ethereum.

Accordingto Dexscreener, Solanas 24-hour volumes on March 18 are over $5.3b while Ethereum stands at 1.85b. In terms of transactions, ETH is way behind close to 250k while Solana has exceeded 7.6m during the same period.

At the time of writing, Solana has 4.3b dollars locked based on DefiLlamadata. Ethereum is the dominating chain with $51.8b TVL. However, Solana has emerged as the top non-EVM chain. A non-EVM chain operates without the Ethereum Virtual Machine, employing alternative systems for smart contract execution.

In terms of price, Solana has also surpassed the Binance Coin (BNB). Based on CoinGeckodata, SOL has secured the position as the fourth-largest crypto by market capitalization.

At press time, the market capitalization has gone north of $91b, almost $6b above BNB.

Databy Token Terminal reveal that Solanas 30-day fee collection and revenue, both have seen over 75% increase. The numbers are positive for the annualized fees for the chain as well. Daily active users at 2m have seen almost a 380% increase.

Transactions per second (TPS) or the number of transactions SOL can process in one second is over 2,300 on March 18.

Tristan Frizza, co-founder of Zeta Markets, a crypto perpetual exchange powered by Solana remarked on the chains achievements.

Frizza said, Solanas all-time high in daily new addresses and transactions surpassing that of Ethereum and its L2s, is a testament to the blockchains resilience, speed, and the faith of its community.

The executive added, This isnt merely about one blockchain outperforming another; its about the democratization of access to DeFi, the realization of blockchains true potential, and the dawning of a new era where speed, security, and ease of use become the bedrock of digital finance.

He believes this milestone is not just about one blockchain outperforming another but represents a broader shift towards the democratization of DeFi and a new era of digital finance. Frizza said, Just as weve witnessed institutional interest drive Bitcoins ETF approvals, Solanas robust fundamentals and genuine user activity position it as a frontrunner in the race for broader adoption.

While decentralized exchange (DEX) trading volume underpins Solanas surge, the Google Trends are also in its favor.

Solanas search interest hasreportedlyreached an all-time high.

Despite the opportunities presented by trading memecoins on the eco-friendly chain, users should pay attention that not all ventures end in profit.

Solanas overtaking of Ethereum in trading volume marks a potential flippening event. With its swift growth and rising adoption, SOL challenges Ethereums dominance in the smart contracts front, already securing fourth place with favorable returns for investors. However, the aftermath of Ethereums Dencun upgrade which promises lower fees is ensuring the competition between these two chains remains fierce.

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Solana Tops Ethereum in Volume: Is This the Real Flippening? - CCN.com

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Standard Chartered Predicts Up To $45 Billion Inflows To Ethereum ETFs Within 1 Year – Cryptonews

Last updated: March 18, 2024 16:16 EDT | 1 min read

British multinational bank Standard Chartered expects Ethereum (ETH) to outperform Bitcoin (BTC) after spot ETFs for the former are approved by regulators in May of this year.

In a Monday research note, the bank waxed extra bullish on both assets, upping its previous Bitcoin cycle top prediction from $150,000 to $250,000 in 2025. Ethereum could climb over 4X to $14,000 per unit, following a 12-month tsunami of up to $45 billion in ETF inflows.

We estimate that spot ETFs will drive inflows of 2.39-9.15 million ETH in the first twelve months after approval, wrote the banks analyst Geoff Kendrick. In USD terms, that equates to roughly $15 billion to $45 billion.

The figure, Kendrick noted, mirrors his inflow expectations for Bitcoin spot ETFs in market cap-adjusted terms. Since launching on January 11 following a split-decision SEC approval, net inflows to the U.S. Bitcoin spot ETFs have totaled over $11.9 billion despite non-stop outflows from the Grayscale Bitcoin Trust (GBTC).

Given the current pace, the bank has revised its end-of-2024 Bitcoin price prediction from $100,000 to $150,000, with $200,000 marking the new midpoint for a sideways trading range at the end of 2025. This price would align with a two-asset optimization scenario where Bitcoin takes up 20% of investors allocation to gold within their portfolios.

Meanwhile, Ethereum is expected to either keep pace with or outpace BTC over the next two years, moving from its current 5.4% price ratio against the leading crypto in 2024, to the 7% ratio in the following year, which it held in 2021 and 2022.

This would imply a USD level of 8000 for ETH, the bank wrote as its end-of-2024, price prediction. For 2025, based on its BTC expectation of 200,000, it expects an ETH price of $14,000.

While Standard Chartered anticipates Ethereum ETF approval by May, several analysts have grown much less optimistic about the idea given regulators seeming lack of communication on the matter.

Our odds of ETH ETF approval by May deadline are down to 35%, wrote Bloomberg ETF analyst Eric Balchunas to X last week. All the signs/sources that were making us bullish 2.5mo out for BTC spot are not there this time.

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What You Need To Know Ahead of Ethereum’s Dencun Update Wednesday – Investopedia

Key Takeaways

Ethereum is scheduled to undergo a network update called the Deneb-Cancun, or Dencun, on Wednesday, aimed at improving user experience and lowering transaction fees for some users on the the network's Layer 2 blockchains.

Ether (ETH), the native coin of the Ethereum blockchain, soared past $4,000 early Wednesday, but gave up some of those gains to trade a shade under that threshold at 10:30 a.m. Eastern.

The Dencun update prioritizes scalability, efficiency, and security through the implementation of various Ethereum Improvement Proposals (EIPs).

According to the Ethereum Foundation, the most notable change is EIP-4844 for proto-danksharding, which seeks to optimize gas fees for Layer 2 network (L2) data and enhance the network's ability to handle greater transaction volumes via those secondary layers.

Exchanges may face delays in processing Ethereum transactions on Wednesday as the update rolls out. Coinbase (COIN) said Monday that it expects disruption due to the update to last for at least an hour on or around 9:45 a.m. Eastern time, although that could change. Kraken, meanwhile, is budgeting for about 15 mins of delay for maintenance around 4:00 a.m. Eastern time and recommends users "not to place or cancel orders during this timeframe."

Layer 2 networks, such as rollups, are secondary blockchains built on top of the base Ethereum network. In a bid to scale transaction volumes, rollups compress transactions by bundling them. The initial verification for those transactions happens off the chain, but the transactions are settled on the main Ethereum blockchain.

However, even with the compression, nodes processing transactions hold on to Layer 2 data forever, expanding their hardware requirements, which are then passed on to users via higher transaction or gas fees. More than 90% of the fees paid by users on rollups are because of this data storage.

The Dencun upgrade will alter that, allowing information related to Layer 2 networks to be added to the base Ethereum blockchain via temporary, more efficiently stored "blobs" rather than as permanent data. As of this writing, blob data will be available for 18 days. This is intended to lower costs.

"Each byte of data that L2s store on Ethereum costs roughly 16 gas. The introduction of blobs and a new fee market designed for blob data drops the gas cost down to 1 per byte of data stored," noted Fidelity Digital Assets in a report about the upgrade. "This is a maximum gas cost reduction of 94%!"

However, it is important to note that Ethereum users on the main blockchain or Layer 1 users won't stand to benefit much from the lower fees found on Layer 2 networks after the upgrade.

"Currently, Ethereums performance is hindered by its slow transaction speed, low throughput, and high costs for users. With average transaction fees of $2.3 as of February 22nd, Ethereum is significantly more expensive versus alternatives like Solana. This threatens to drive away end users to other chains," said crypto asset manager Grayscale in a report.

The Dencun upgrade "could help Ethereum compete in terms of scalability with faster chains," the Grayscale report said.

Fidelity also points out that in addition to differentiating it from competitors, the latest changes to the Ethereum network could help transition from being a general-purpose blockchain to a global database for Layer 2 networks. The best way to gauge the success of the Dencun upgrade will be to track the number of Layer 2 users via a metric such as active addresses," Fidelity said.

(UpdateMarch 13, 2024: This story has been updated with more recent ETH price information.)

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What You Need To Know Ahead of Ethereum's Dencun Update Wednesday - Investopedia

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Solana and Ethereum backers pour into DeeStream presale – crypto.news

Disclosure: This content is provided by a third party. crypto.news does not endorse any product mentioned on this page. Users must do their own research before taking any actions related to the company.

Investors from Solana (SOL) and Ethereum (ETH) pour into the DeeStream presale, eyeing the platforms growth potential.

Investing in a presale allows engaging with a project beyond just financial contribution. Active participation in the projects development, providing feedback and promoting the project within the investors network can enhance the value of the investment.

This deeper level of engagement creates a stronger connection between investors and the project, potentially influencing its success and the investors returns.

Backers from Solana (SOL) and Ethereum (ETH) pour into the DeeStream (DST) presale, eyeing the platforms growth potential.

Solanas emergence as a leader in providing fast and scalable blockchain solutions has caught the attention of developers and investors worldwide.

The Solana communitys enthusiasm for supporting projects that leverage Solanas technical prowess underscores their commitment to fostering innovation within the blockchain space.

Despite facing challenges related to scalability and fees, Ethereum remains at the forefront of blockchain innovation, hosting a vast array of projects and applications.

The Ethereum communitys ongoing support for new ventures reflects their belief in Ethereums potential to drive forward the decentralized revolution.

The DeeStream presale has ignited global excitement, particularly among backers of Solana and Ethereum, who recognize the transformative potential of applying blockchain technology to the streaming sector.

DeeStreams strategic emphasis on reducing transaction fees and offering a swap service with 0% commission charges showcases its dedication to creating a user-friendly economic ecosystem.

The platform aims to democratize content creation, making it accessible to a wider audience. The second stage of the presale offers entry at $0.055.

DeeStreams vision to disrupt traditional media distribution mechanisms with a decentralized model has deeply resonated with the Solana and Ethereum communities.

Disclosure: This content is provided by a third party. crypto.news does not endorse any product mentioned on this page. Users must do their own research before taking any actions related to the company.

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What is the Ethereum Dencun upgrade, and why is it important? – Cointelegraph

Ethereum Cancun-Deneb (Dencun) upgrade, explained

Dencun, an amalgamation of two separate upgrades Deneb and Cancun tackles both Ethereums consensus and execution layers in a single upgrade.

Technically a hard fork in blockchain terminology, the upgrade rolled out at Ethereum epoch 269,568 at 1:55 pm UTC and finalized at 2:10 pm. The upgrade is set to significantly slash the transaction fees of layer-2 solutions and boost the scalability of Ethereum.

The objective of the Deneb upgrade is to augment the consensus layer, which deals with how network participants agree on the state of the blockchain. Cancun, on the other hand, improves the way transactions are managed and processed on the execution layer. The Dencun upgrade came nearly a year after the Shanghai upgrade in April 2023, which enabled Ether (ETH) holders to unstake ETH, which was locked into the network.

Burgeoning gas fees on Ethereum have necessitated remedial measures on the part of Ethereum developers. While layer-2 solutions offered Ethereum a path to scalability by processing transactions off the main chain, gas prices on L2 solutions remained a hurdle for widespread adoption.

Dencun unveils proto-danksharding, which will benefit L2 networks such as Polygon, Arbitrum and Optimism, among others. The key feature of Dencun, proto-danksharding focuses on making layer-2 transactions significantly cheaper, paving the way for massive scalability improvements on Ethereum. It is also important to note that shard chains are no longer part of the Ethereum roadmap.

Proto-danksharding, a stepping stone toward full danksharding, lets layer-2 solutions on Ethereum store bulky transaction data off-chain like in a temporary storage locker lowering fees for users on L2 solutions by keeping the main Ethereum network free for essential transactions.

Proto-danksharding, which has introduced data blobs via Ethereum improvement proposal (EIP)-4844, is the most notable feature of the upgrade.

Data blobs are a novel solution intended to improve the efficacy of L2 transaction data storage. Currently, L2 solutions use transaction calldata, which the upgrade will replace with blob data. Calldata stores limited transaction data on-chain, which needs to be retained by the nodes forever, significantly increasing the burden on validators.

Proto-danksharding is a novel technique that removes the limitations of the present on-chain data storage system, opening up a vastly more effective data management system. By utilizing data blobs specifically designed to manage large volumes of data outside the Ethereum blockchain, rollups benefit from more scalable data storage.

The new rollup transaction storage method is expected to reduce the data overhand on Ethereum nodes. It reduces network congestion and optimizes network size for better performance. Additionally, lower gas prices will increase the usability and efficacy of L2 applications. Moreover, as blobs are pruned after about two weeks, Ethereum validator nodes can optimize disc space usage.

EIP-4844 also introduces cryptographic tools like the KZG commitment scheme. These tools ensure the off-chain data stored in blobs can be efficiently verified as valid (without actually revealing the data itself), maintaining the networks security.

Although Ethers price dipped following the upgrade, Dencun is regarded as a significant advancement toward resolving Ethereums scalability issues.

Dencun paves the way for a more affordable and accessible Ethereum ecosystem. There are various reasons behind why it is important, including:

Dencun introduced a technique for layer-2 scaling solutions based on Ethereum that reduces transaction fees. These layer-2 networks bundle transactions to cut expenses before transferring them to the main Ethereum blockchain. The primary functionality of Dencun, proto-danksharding, proposed via EIP-4844, lowers the costs of layer-2s by enabling them to keep specific transaction data off-chain.

Dencuns proto-danksharding introduces essential concepts necessary for full danksharding, the ultimate sharding solution for Ethereum, even though it does not implement sharding itself. As mentioned, it introduces blob transactions with off-chain storage to handle bulky data and reduce fees. Additionally, cryptographic schemes allow efficient verification of this off-chain data.

Moreover, Dencun implements fee-reduction algorithms for layer-2 solutions, which are essential for later fee management within shards. Lastly, it lays the groundwork for a future where transaction data and processing are separated, a core principle of sharded systems.

With significantly lower transaction fees, layer-2 solutions on Ethereum will become more attractive to users, which could lead to broader adoption of Ethereum for various applications, such as nonfungible tokens (NFTs) and decentralized finance (DeFi). Additionally, reduced fees on layer-2 solutions demonstrate how Ethereum constantly evolves and helps it remain competitive with other blockchains.

Dencun simplifies consensus processes and transaction handling. As a result, developers may find it simpler to create and implement decentralized apps (DApps) on Ethereum. A more seamless development process may encourage increased innovative projects on the Ethereum network.

Although security improvements were not the Dencun upgrades primary emphasis, it includes several upgrades to improve Ethereums security posture. One aspect of Dencun involves EIP-4788, which serves as a communication link between Ethereums consensus layer, where validators safeguard the network, and the execution layer, where transactions are processed. It might be more challenging for attackers to take advantage of weaknesses in either layer in the presence of robust communication between these layers.

EIP-6780, also part of Dencun, changes how smart contracts SELFDESTRUCT function operates. A smart contract can practically destroy itself because of this feature. By making it more difficult for attackers to abuse this feature for nefarious ends, the modification may increase the general security of Ethereum smart contracts.

The Dencun upgrade marks a significant step forward for the Ethereum ecosystem, benefiting both users and developers.

Proto-danksharding lowers costs for layer-2 scaling solutions based on Ethereum, offering users a more cost-effective experience, especially when using NFTs and DeFi services.

Layer-2 solutions bundle transactions before sending them to the main Ethereum blockchain, and Dencun enables them to keep some transaction data off-chain to save costs.

Dencun streamlines transaction handling and consensus mechanisms for developers, which translates to a smoother development experience, making it easier and faster to build and deploy DApps on Ethereum. Enhanced developer experience further unlocks a wave of innovative projects, further enriching the Ethereum ecosystem.

In addition to its immediate advantages, Dencun sets the stage for further developments by introducing critical concepts needed for full Danksharding (as discussed above), which is the ideal way to address Ethereums scalability issues.

Sharding essentially splits the Ethereum blockchain into smaller partitions, allowing for parallel processing of transactions and significantly increasing throughput. In essence, Dencun brings Ethereum closer to becoming a truly scalable and user-friendly platform, poised for broader adoption and a more vibrant future.

Ethereums roadmap to full danksharding is a staged approach, with Dencun being a crucial first step. The following milestones will involve building upon the concepts introduced by proto-danksharding.

Developers will concentrate on innovations simplifying block production, such as proposer-builder separation. They will also work on data availability solutions, ensuring that off-chain data may still be verified if certain validators are offline. Finally, a complete Danksharding system will divide the Ethereum blockchain into shards, each of which will handle a distinct set of transactions. This parallelization will make massive scalability possible.

Up next on Ethereums roadmap is the Petra upgrade, merging Prague and Electra. While specifics are still under discussion, potential features include Verkle trees for efficient data storage and laying the foundation for The Verge, which aims to simplify block verification. This focus on scalability paves the way for a more user-friendly Ethereum.

The precise time to full danksharding is unknown; estimates range from a few years to a decade. Nonetheless, Dencuns successful implementation shows the Ethereum communitys commitment to ongoing development. Like Dencun, every milestone along the journey offers advancements and prepares the road for a scalable and future-proof Ethereum.

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What is the Ethereum Dencun upgrade, and why is it important? - Cointelegraph

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