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Vitalik Buterin Unveils Ethereum’s Bright Post Dencun Future: A Leap Towards Scalability and Efficiency

09 April 15:06

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## [TL; DR]
On 13 March <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> launched the Dencun hard fork which will improve the network’s efficiency.

The Dencun upgrade will improve the Ethereum network’s scalability, cost effectiveness and interoperability.

Still, Ethereum is looking forward to further enhancing its scalability and security.

## Introduction
For several years now, the Ethereum blockchain has been undergoing transformation through constant changes to overcome the challenges it has been experiencing such as scalability problems and high transaction costs. The real journey towards total transformation started with the Merge.

From there the blockchain had other upgrades such as the Shanghai Upgrade and  the Shapella upgrade. Lastly, on [13 March Ethereum launched the Dencun Hard Fork](https://www.gate.io/post/KQQDFis7c1RwWRIVGAoGBB5QX1sO0O0O/status/5006512 "13 March Ethereum launched the Dencun Hard Fork") which introduces several changes and lays a strong foundation for future developments. This article discusses the implications of the Dencun Upgrade and the future of the Ethereum blockchain.

## The Dencun Hard Fork: A Game Changer for Ethereum
The Ethereum future developments hinge on the Dencun hard fork which was launched on the Mainnet on 13 March. This upgrade is an important step towards [developing a layer-2 centric ecosystem Ethereum](https://www.gate.io/learn/articles/dencun-upgrades-impact-on-ethereum-l2-competition/2176 "developing a layer-2 centric ecosystem Ethereum").

Since the launch of the [Shapella upgrade in April 2023](https://www.gate.io/learn/articles/all-you-need-to-know-about-the-ethereum-shapella-upgrade/518 "Shapella upgrade in April 2023") which enabled the withdrawal of staked ETH, the Dencun hard fork is the most significant development on the Ethereum blockchain. Basically, the Dencun hard fork aims to improve network scalability and data availability sampling Ethereum through proto-danksharding.

Related news: [Dencun Will Make Ethereum Cypherpunk Again](https://www.gate.io/learn/articles/dencun-will-make-ethereum-cypherpunk-again/2197 "Dencun Will Make Ethereum Cypherpunk Again")

The Dencun upgrade will bring many remarkable changes on the Ethereum blockchain. For example, in addition to enhancing scalability it will lead to Ethereum transaction fees reduction across layer-2 networks. This will be possible through the use of rollups to post data on the blockchain. As a fact, the gas fees are likely to decrease by at least 10 times.

High transaction fees was the greatest concern the blockchain faced since its inception. Right now, that should be a thing of the past resulting in a more competitive network.

The Dencun Hard Fork which comprises 9 nine Improvement Proposals (EIPs) that include EIP-6780 EIP 7623 Ethereum, EIP-1153, EIP-4788, EIP-5656, EIP-6493 and EIP-4844 Ethereum merges elements from two important [upgrades Cancun, which focuses on the execution layer and the Deneb which targets the consensus layer](https://www.gate.io/learn/articles/community-views-on-ethereum-after-cancun-deneb-upgrade/2344 "upgrades Cancun, which focuses on the execution layer and the Deneb which targets the consensus layer").

These two upgrades will improve Ethereum’s scalability and overall functionality as they help to streamline transaction handling and the consensus mechanisms. In addition, the Dencun upgrade will result in Ethereum security improvements which enhance the functionalities of decentralized applications on the blockchain.

## The Shift Towards a layer-2 Centric Ecosystem and the implications for Ethereum 
The Ethereum network’s shift towards a Layer 2-centric ecosystem will further enhance decentralization and enable many layer-1 applications to transition to layer-2 ones. Vitalik Buterin Ethereum talked about the importance of separate data space which improves Ethereum applications scalability.

As a fact, separate data space enables L2 projects to store data in a section of a block that is inaccessible to Ethereum Virtual Machine (EVM). This feature allows the data to be broadcasted and verified separately from the blocks, making it an important innovation that lays the groundwork for scalability through data availability sampling.

Another important attribute of this innovation is that it will enable the expansion of Ethereum's data capacity without having negative impacts on the security of the Ethereum layer-2 protocols. Again, this does not require the developers to make serious changes to their systems.

## Proto-Danksharding: Revitalizing Ethereum’s Scalability 
Probably, Dencun’s most important Improvement Proposal (EIP) is EIP-4844 Ethereum or proto-danksharding which sets the stage for the use of rollups to post data on Ethereum. Currently, the rollups use calldata to post transactions onto Ethereum. Since the blockchain stores the calldata permanently and allows the execution layer or EVM to access it that contributes 90+% of the rollup costs. Nonetheless, proto-danksharding Ethereum will use a new transaction type called a blob.

A blob is similar to a block but the transaction data comes directly from a rollup. As a result, the verification of the data is based on a reference hash rather than the entire sharded data in blobs. The blobs, therefore, make transaction verifications off-chain and in a simple manner.

With proto-danksharding the Ethereum network will process bundled transactions that come from layer-2 rollups without storing them permanently. Therefore, [the key aspect of the EIP 4844 is that all the layer-2 rollups aggregate](https://www.gate.io/learn/articles/explore-ethereum-s-dencun-upgrade-and-potential-opportunities/1920 "the key aspect of the EIP 4844 is that all the layer-2 rollups aggregate") and process all transactions off-chain which reduces Ethereum network congestion. In all, this will enhance network speed, increase throughput and reduce user costs.

A Grayscale report confirms the view that the Dencun upgrade will increase Ethereum competitiveness within the blockchain ecosystem. The [reports says](https://www.grayscale.com/research/reports/ethereums-coming-of-age-dencun-and-eth-2.0 "reports says") that henceforth Ethereum “has the potential to enhance Ethereum’s scalability and competitiveness against faster chains”.

## Ethereum’s Roadmap: Focus on Efficiency and Security
Vitalik Buterin Ethereum has laid a clear roadmap to achieve several targets that include Ethereum decentralization and enhanced Ethereum staking. The team will also focus on preventing Ethereum blockchain bloat which is a source of great concern among developers.

First, Buterin said that the team has plans to optimize data compression in order to improve the network’s security. Also, Ethereum will introduce clever cryptography which will make the identity of the current block proposer private to prevent DOS attack.

The next stage will involve the implementation of data availability sampling Ethereum to improve the capacity of each blob to 16 MB per slot. At the same time the team will work on optimizing layer-2 solutions through optimistic execution and data compression among other techniques.

Ethereum’s next stage, the Scourge, will promote network decentralization, censorship resistance and reduce protocol risks from miner extractable value (MEV).

Later, the team will focus on Verkle trees, Ethereum user experience and single-slot finality, which Buterin views as less significant than the improvements on security and network decentralization. Such developments that complement PeerDAS Ethereum and ZKEVMs Ethereum will make it a blockchain of choice.

Related article: [Bitcoin VS Ethereum, Which Ecosystem Will Lead Next?](https://www.gate.io/learn/articles/bitcoin-ecosystem-vs-ethereum-ecosystem-who-will-be-the-next-leader/2376 "Bitcoin VS Ethereum, Which Ecosystem Will Lead Next?")

## Conclusion
Vitalik Buterin has envisioned a brighter future for the Ethereum blockchain following the successful launch of the Dencun hard fork on 13 March. The upgrade will usher in many benefits such as lower transaction costs, better user experience, greater network decentralization and protocol interoperability. Looking ahead, the Ethereum team is focusing on further enhancing the network security and censorship resistance.

## FAQs on Ethereum
### Who owns Ethereum blockchain?
Vitalik Buterin, Charles Hoskinson, Anthony Di Iorio and Mihai Alisie were the founders of Ethereum. However, since Ethereum is an open source decentralized network thousands of developers from around the world maintain it.
### When was Ethereum invented?
Ethereum was invented in 2013 and launched in 2015. Vitalik Buterin, a Russian-Canadian programmer conceived the idea of Ethereum.
### Is Ethereum decentralized?
Ethereum is an open-source and decentralized network since it is maintained by thousands of developers from different countries. Vitalik Buterin, Charles Hoskinson, Anthony Di Iorio and Mihai Alisie founded Ethereum in 2013.
### What is the native cryptocurrency for the Ethereum network?
Ether, popularly known as ETH, is Ethereum’s native cryptocurrency. It is the utility token used for making  payments on the network such as transaction fees.

<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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TL；DR

Introduction

The Dencun Hard Fork: A Game Changer for Ethereum

The Shift Towards a layer-2 Centric Eco_ and the implications for Ethereum

Proto-Danksharding: Revitalizing Ethereum’s Scalability

Ethereum’s Roadmap: Focus on Efficiency and Security

Conclusion

FAQs on Ethereum

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Vitalik Buterin Unveils Ethereum’s Bright Post Dencun Future: A Leap Towards Scalability and Efficiency

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