The Dencun upgrade, a major initiative for Ethereum, has recently concluded its deployment on the Sepolia testnet, showcasing progress in the journey toward proto-danksharding.

The latest significant update for the Ethereum decentralized blockchain, dubbed Dencun, has launched on the Sepolia test network. Initiated at 22:51 UTC on a Tuesday, the deployment wrapped up shortly after, leaving just one more testnet launch before the awaited realization of proto-danksharding.

"Blobs are finally making their way through Sepolia! When the testnet forks happen without any drama, that’s always a win!\" remarked Parithosh Jayanthi, a DevOps engineer at the Ethereum Foundation, in a post on the social media platform X.

Ethereum core developers implemented After an upgrade on the Goerli testnet earlier this month, the Ethereum team plans to roll out the upgrade on the final testnet, Holesky, on February 7th. Once that’s done successfully, they'll set their sights on a launch date for Dencun on the mainnet.

Among the most anticipated changes brought by Dencun is proto-danksharding, designed to cut gas fees and bolster scalability through a revolutionary data storage method called 'blobs.' With the Ethereum network rapidly expanding, this upgrade plays a pivotal role in facilitating its sustainable growth. Layer 2 Originally expected in late 2023, Dencun is positioned to be Ethereum’s most important upgrade since last March, which allowed for the withdrawal of its staked native currency, ETH.

“A blob-carrying transaction is like a regular transaction, except it also carries an extra piece of data called a blob. Blobs are extremely large (125 kB) and can be much cheaper than similar amounts of calldata,” explained Vitalik Buterin, co-founder of Ethereum in the blog. 

The Dencun upgrade is expected to significantly influence the supply of ETH. Shapella The installation of the Dencun upgrade will allow Layer 2 transactions to be processed on the Ethereum network through blobspace, providing a new alternative to the current transaction calldata method. This adjustment could lead to a reduction in gas consumption, subsequently lowering the amount of ETH burned.

As noted by Luke Nolan, a research associate at CoinShares focusing on Ethereum, the anticipated decrease in the burning of ETH could potentially slow the growth of its supply. However, it’s crucial to note that this effect might be balanced out by other variables, including demand on Layer 1, which typically drives deflation, alongside the limited impact of blob utilization on the circulating supply.

Recently, Ethereum's price rose over 1.39% within 24 hours, hitting $2,339, according to Coinmarketcap at the moment of writing.

The successful launch of Dencun on the Sepolia test network, along with its upcoming testnet deployment, indicates Ethereum’s strategic efforts to enhance scalability and efficiency within its ecosystem.

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