Ethereum Foundation is taking major steps on the development of the cryptocurrency network, working on the next major upgrade: Dencun. Besides introducing new features and improvements to the ecosystem, Dencun looks to reduce the costs of Layer 2 transactions, halving or even downgrading them by an order of magnitude. To this end, it has identified 4 main Ethereum Improvement Proposals (EIPs), such as EIP-4844 and EIP-6780, that form the basis of the upgrade.

EIP-4844 will feature temporary “data-blobs” that are used by Layer 2 solutions instead of CALLDATA. This will lead to reduced gas costs since data is not stored permanently on the blockchain, but temporarily. Along with that, EIP-6780 deactivates the SELFDESTRUCT opcode for most cases, but preserving its functionality. To complete the changes, there is EIP-1153, introducing two new opcodes to enable re-entry locks and single-transaction ERC20 approvals, as well as EIP-6475, defining one of the SSZ elements that are part of the 4844 transaction format.

Alongside these four, development teams may still add other EIPs to Dencun, like the Precompile for BLS12-381 curve operations, which has been discussed since 2019. Modifications to the EIPs are still possible while Ethereum reviews the best long-term SSZ formats for transactions. Once ready, Dencun will be a major milestone on the cryptocurrency network, allowing for new use cases and greater cost efficiency in Layer 2 transactions.



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