Upcoming Ethereum Upgrade To Reduce Fees – Details

The second largest crypto blockchain Ethereum is preparing for a new upgrade that will reduce transaction fees on the network. The upgrade tagged “Dencun” will also introduce more use cases for Ethereum. 

Notably, Ethereum Foundation made the announcement of Dencun upgrade just three weeks after the Shapella upgrade.

With the upcoming Dencun upgrade, Ethereum network users can now transact with lower fees. 

The upcoming Dencun upgrade will feature Ethereum Improvement Proposals (EIPs). These are proposals that aim to bring changes to the network. The Ethereum community usually reviews the proposals to accept or reject them.

If the community accepts the EIPs, they become a part of the Ethereum network codes. The Dencun upgrades have four proposals, including EIP-1153, EIP-6475, EIP-4844, and EIP-6748. 

The first proposal is EIP-4844 or Proto-Danksharding or The Surge. The Surge aims to bring in “data blobs” for Layer 2 solutions to post transaction and proof data instead of CALLDATA. 

The blobs offer lower gas costs since they’re never stored on the blockchain permanently. The blob aims to lower the transaction fee on Ethereum. 

The second important proposal for review is the EIP-6780. This proposal is to deactivate the SELFDESTRUCT opcode but still preserve its functionality. EIP-6780 proposal will allow the creation and erasure of contracts in a single transaction but not delete the contract code or storage.

The third proposal is EIP-1153 which will bring two new opcodes, TSTORE and TLOAD, to the network. The developers aim to provide transient storage that will be cleared once a transaction ends. This will add more use cases, from re-entry locks to single-transaction ERC20 approvals.

The fourth proposal is EIP-6475: SSZ Optionals. This change supports EIP-4844 since it defines one of its SSZ elements in the transaction format. The aim is to facilitate forward compatibility with SSZ objects that will be introduced to the network. 

While the four proposals above remain the major ones, the development team has others that might be considered too. One of the probable ones is EIP-2537: Precompile for BLS12-381 curve operations.

-Featured image from Pexels and chart from Tradingview