Crucial Network Enhancement: Dencun Upgrade
Nebojsa Urosevic, the Co-Founder and SVP of Tenderly, expressed the need for Ethereum to adapt to the increasing transaction volumes without imposing high costs on users as global adoption continues to rise.
Ethereum (ETH) is preparing to implement the highly-debated Dencun upgrade, a technological overhaul at the blockchain’s core layer that aims to enhance network throughput and reduce transaction expenses by introducing proto-danksharding.
The Dencun upgrade will expand the data capacity for L2 solutions like Optimism by providing access to blobs. Urosevic, who has a decade of experience in software engineering and maintains a custom scalable Ethereum Virtual Machine (EVM) at Tenderly, believes that this upgrade is crucial for the future of decentralized finance (defi) and will help remove entry barriers for new users.
As Ethereum cannot be infinitely scaled without encountering the blockchain trilemma, layered multichain solutions have proven to be an effective approach for long-term scalability, according to Urosevic. He stated that Ethereum’s Dencun upgrade will incentivize the rollout of more general-purpose and application-specific chains, catering to different types of users. This seamless portability of tools, made more affordable by addressing throughput costs through Dencun, will be important for web2 companies as they onboard more traditional firms into defi, Urosevic explained.
Urosevic also highlighted the importance of improving developer infrastructure for widespread adoption. He mentioned that the evolving multichain ecosystems will bring additional complexity, but providing web3 developers with standardized tools and practices while lowering the entry barrier for web2 builders can create a frictionless community for innovators. If Dencun lives up to its promises, Urosevic believes that this solution would be easier to achieve.
The implementation of the Dencun upgrade has sparked divergent opinions from crypto executives. However, Urosevic remains optimistic about its potential.
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