Following the implementation of the Dencun upgrade on Ethereum, Layer-2 (L2) networks such as Optimism, Zora, and Base have experienced a remarkable decrease in transaction costs, marking a significant milestone in achieving scalability for the Ethereum ecosystem.
Jesse Pollak, head of the L2 Base project incubated by Coinbase, emphasised the drastic reduction in transaction fees, with some fees now appearing as less than a penny on wallets due to the increased efficiency brought about by the Dencun upgrade.
In a demonstration shared on social media platform X, Pollak showcased how transaction costs, previously amounting to $0.31, now display as $0.00 but actually cost $0.0005—a testament to the tangible impact of the upgrade.
after 2 years of hard work, blobs are now live on @base
before: $0.31
after: $0.00 (but actually $0.0005)wallets need to update to handle these cost reductions! pic.twitter.com/solIX9D4HM
— Jesse Pollak (jesse.xyz) 🛡️ (@jessepollak) March 14, 2024
Coinbase CEO Brian Armstrong echoed these sentiments, highlighting the importance of reduced transaction fees and confirmation times on Layer 2 networks, stating that Ethereum is finally achieving scalability.
However, it’s important to note that not all Layer 2 networks are fully optimised to leverage the benefits of the Dencun upgrade at this time.
Optimism, one of the leading Layer 2 networks, showcased its significantly reduced transaction fees, positioning itself as one of the most cost-effective options for users in the current landscape.
👀We can’t believe our eyes.
We’re seeing <$0.001 transactions right now.
— Optimism (@Optimism) March 14, 2024
The Dencun upgrade introduced proto-danksharding, leveraging blobs to process large amounts of data more efficiently. This innovation translates into lower operational costs for Layer 2 networks, resulting in reduced transaction costs for end users.
Blobs, which are used to carry large amounts of data without direct interaction with smart contracts or Layer 2 networks, offer a more efficient solution compared to previous methods involving calldata.
While the current transaction costs on blob-enabled Layer 2 networks are exceptionally low, Anthony Sassano, a core Ethereum developer, cautioned that costs may increase over time as demand for blobs grows. Nevertheless, he emphasised that blobs are part of the broader danksharding roadmap, signalling ongoing improvements and optimizations for Ethereum scalability.