Summary
TLDR: Ethereum’s upcoming network upgrade, Dencun, will drastically reduce gas fees on layer-2 networks, making transactions cheaper and more efficient. This shift will likely lead to a significant decrease in on-chain transactions on the Ethereum mainnet, with most retail user traffic moving to layer-2 networks. Dencun is expected to revolutionize application development and on-chain existence by removing barriers to entry and enabling seamless integration across various platforms at effectively zero cost.
Key Points
1. Ethereum is set to undergo the Dencun network upgrade on March 13, which is expected to revolutionize the blockchain’s operations and make gas fees a thing of the past on scaling networks.
2. Dencun will introduce “blobs” and proto-danksharding, which will significantly reduce gas fees on layer-2 networks by allowing temporary data storage for about a month, making transactions cheaper and easier to validate.
3. Post-Dencun, the majority of retail user traffic is likely to shift to layer-2 networks like Arbitrum, Optimism, and Polygon, leading to a gas-free future and a significant shift in how users interact with Ethereum, with the mainnet fading into the background.