The Ethereum network is gearing up for its upcoming Dencun update, anticipated to bring a significant enhancement known as “proto-danksharding” through Ethereum Improvement Proposal (EIP) 4844. This upgrade, scheduled for mid-March, is designed to extend data capacity for Ethereum transactions by incorporating off-chain ‘data blobs’. Such an innovation is crucial for improving the scalability of Layer 2 solutions like Polygon (MATIC), which is poised to experience a profound impact due to this development.
Ethereum’s Scalability Leap with EIP-4844
Polygon’s developers, with a keen focus on its zkEVM network, are looking forward to the expected reductions in gas fees and enhanced data availability post-update. The Dencun update is set to offer cost-effective data storage for Layer 2 solutions, potentially transforming the landscape of Ethereum-based applications by improving their scalability.
Using solutions such as Polygon PoS and zkEVM, Polygon aims to slash transaction fees and scale Ethereum-based applications effectively. The zkEVM, in particular, stands to gain directly from the Dencun update, with improvements expected in data accessibility and fee reduction.
Anticipating Drastic Fee Reductions
Polygon zkEVM’s co-founder, Jordi Baylina, points out the current high costs of data availability for ZK rollups. However, he predicts a dramatic drop in transaction fees—by as much as 10 to 50 times—when the Dencun update’s expansion in data capacity merges with data compression. This is seen as a game-changer for ZK rollups in terms of data capacity and transaction costs. The anticipated fee reduction is expected to drive users towards the low-cost altcoin network, potentially increasing MATIC’s adoption rate.
To harness the benefits of EIP-4844, Polygon zkEVM will undergo technical modifications, including the integration of BLS pairings and the implementation of precompiled smart contracts, as outlined in the recent Etrog hard fork. A new proof system is also in development to further leverage data compression within zkEVM.
Ethereum’s developers are diligently working to assemble the necessary components for the mainnet launch of the Dencun update, paralleled by Polygon’s efforts to adapt and capitalize on the improvements for greater scalability and efficiency.