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The Dencun upgrade was successfully rolled out on the Ethereum mainnet at 1:55 pm UTC on March 13.

Dencun is the most anticipated hard fork since the Merge and is expected to significantly reduce the transaction fees of layer-2 networks and enhance Ethereums overall scalability.

While the Dencun upgrade is a step in the right direction, it wont improve all the shortcomings of layer-2 solutions, according to Arthur Breitman, the co-founder of the Tezos blockchain. He told Cointelegraph:

Dencuns launch comes nearly a year after the Shanghai upgrade in April 2023, which enabled network participants to unstake their Ether (ETH) for the first time after the network transition to a proof-of-stake network following the Merge.

The Dencun hard fork incorporates nine different Ethereum Improvement Proposals (EIPs). The upgrades name combines the Cancun upgrade of Ethereums execution layer and the Deneb upgrade on its consensus layer. The first part, Cancun, focuses on improving how transactions are managed and processed on the execution layer, while the second part, Deneb, aims to improve the consensus layer, which refers to how network participants agree on the state of the blockchain.

The introduction of data blobs via EIP-4844, also known as proto-danksharding, is among the most notable features of the upgrade, according to James Wo, the CEO and founder of Digital Finance Group. He told Cointelegraph:

However, the promised fee reductions wont affect Ethereum mainnet users,according to a March 6 report by Max Wadington, a research analyst at Fidelity Investments. He wrote:

Gas fees on the Ethereum mainnet remain high, above 72 gwei. An average swap would cost users $86.15 in gas fees, while nonfungible token sales average $145.60 in gas, according to Etherscan data.

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Dencun upgrade goes live on Ethereum mainnet - Cointelegraph