Ethereum’s Holesky Testnet Triumph with Dencun Upgrade

The Ethereum Dencun upgrade has today been successfully implemented on the Holesky testnet by Ethereum’s core developers in what will be seen as a massive stride in the final phase of the enhancement of the testnet before mainnet deployment, which is set for next month. Major Ethereum execution client Nethermind said the upgrade went live on the Holesky testnet at around 6:35 am ET and executed successfully without incident.

Ethereum Eyes March for Dencun Mainnet Launch

Dencun then integrates features that both Cancun and Deneb include, such as upgrades to enhance the execution and consensus layers of the Ethereum network. The most prominent feature in Dencun is Proto-danksharding (EIP-4844), which brings “blobs” into Ethereum. These blobs will facilitate the temporary storage and retrieval of large volumes of off-chain data by the network nodes in Ethereum to ease storage requirements and dramatically reduce transaction costs for decentralized applications (DApps) on Ethereum.

This is expected to enhance efficiency and scalability in the data processing across the network. Holesky, since it is the last testnet to simulate the Dencun upgrade, has drawn enormous attention. It comes with a larger validator set than the Ethereum mainnet, which implies that if things go right on Holesky, nothing should go wrong with the deployment on the mainnet.

The upgrade launch was staged, with deployments on the Goerli testnet on January 17 and the Sepolia testnet on January 30. Announcements for the mainnet deployment date are set to be tentatively announced during the next Ethereum All Core Developers call and are targeting the date to be early to mid-March.

ETH Price on the Rise Following Dencun Upgrade Launch

Following the Shapella upgrade in March 2023, where stakers could withdraw staked directly from the user’s EOA, the Dencun upgrade is another boon for blockchain rollups. The Dencun upgrade promises users greater block space and a reduced cost for Layer 2 scaling solutions.

Doing the data storage differently, including clearing it after two weeks on-chain, will lower gas fees and increase transaction throughput while reducing roll-up transaction costs. Hence, it can enable new and more complex DApps to develop Layer 2 solutions. A successful launch of the upgrade on the Ethereum mainnet would thus be a step among several other significant steps in addressing issues related to scalability and possibly causing innovations within the blockchain ecosystem to take off.

Following this recent upgrade on the Ethereum network, the ETH price has reacted, with the token recording a price increase of 2.46%. As of press time, ETH was priced at $2415.9132 with a 24-hour trading volume of $8,285,848,096 and a market cap of $290,349,702,094. 

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