Ethereum Cancun upgrade is coming, what substantial benefits will it bring?
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Source: nansen
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History of ETH Upgrades
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Source: @trent_vanepps
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Important upgrades in recent years
On August 5, 2020, London was upgraded, introducing the EIP-1599 proposal, increasing the burning of ETH, and dynamically adjusting the Base Fee of each order.
On September 15, 2022, Paris was upgraded, the consensus mechanism of Ethereum was changed from POW to POS, and the era of machine mining ended.
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Cancun upgrade content and impact
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1. Upgrade content
According to the summary of the 160th Ethereum Executive Layer Core Developer Conference (ACDE), the contents that have been included in the upgrade scope are as follows:
Upgraded lead EIP-4844:
EIP-4844 aims to enable temporary storage and retrieval of off-chain data through Ethereum nodes to meet the data and storage needs of blockchain applications. If successfully activated, EIP-4844 is expected to reduce the cost of layer 2 rollup solutions. It is reported that EIP-4844 has completed testing on four development networks. During the call, the developers announced that a fifth test network will be launched.
EIP-4844 was supposed to be completed in the Shanghai upgrade, but was eventually postponed to the Cancun upgrade.
The developers also agree to incorporate the following EIPs into the upgrade:
EIP-6780 (preparation for the future application of Verkle trees);
· EIP-1153 (introduction of transient store opcodes).
· EIP-1153 (introduction of transient store opcodes).
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These proposals will help ETH achieve better functions.
principle:
The essential purpose of Ethereum’s expansion is to increase the data processing volume and processing speed. Currently, there are two simultaneous directions, one is the rollup of layer 2, and the other is the sharding scheme of the main network. The complete sharding scheme is divided into three steps, and EIP-4844 is the first step.
The principle of rollup has been written a lot before, so I won't repeat it here. The main purpose of the sharding of the main network is to split the data to be stored on the main network to save space, and adopt a flexible access method to temporarily store and retrieve the required data. It’s like watching videos. Originally, you downloaded all the videos and found which one you want to watch. However, many videos may not be needed, which takes up a lot of memory and causes the system to crash. Now it is a video website, just click to watch when you need to watch it, it is temporarily cached to save space.
Before the Cancun upgrade, L2 information was stored in Calldata of L1 information. But this way is costly, and the space of Calldata is limited.
After the Cancun upgrade, L1 will be stored in a new location called "Blob". Blob storage costs less and offers more space. It can allow Ethereum to carry more data, increase the TPS of Ethereum, and reduce costs at the same time, and because the blob is a temporary data package, it can be cleared once for a fixed number of days (currently 30 days), so in fact, nodes only need to download fixed A month's worth of data is sufficient, reducing the burden on nodes.
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2. Good track
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Source: L 2b eat
On-chain futures DEX: GMX, GNS, etc.
Before the vigorous development of L2, the futures DEX on the chain has been limited by the low TPS of Ethereum, because leveraged transactions require higher speed, so there has been no good development before. After L2 can gradually build an ecology, GMX, GNS, etc. rose rapidly, and soon GMX became the project with the highest TVL on Arbitrum. In the future, with the implementation of the Cancun upgrade, the futures DEX on the chain will further develop.
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Source: defillama
Decentralized option DEX: dopex, etc.
Options are the most commonly used trading tools for institutional users. According to data from WFE (World Federation of Trading Platforms), 60% of the trading volume of derivatives orders in traditional financial markets are options. Therefore, once Cancun is successfully upgraded, options on the chain will The development potential of the platform is greater, but it has been limited by the low capital utilization efficiency at present. After the infrastructure is improved, there will be more out-of-the-box applications.
Optimism and its ecology
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Source: defillama
Zk rollup protocol that does not issue Token at present
At present, the Op series is leading and currently occupies the vast majority of the market, but ZK has great potential, and the timing of ZK's outbreak may be at the moment when the complete sharding of Ethereum is implemented.
Zksync: The leading ZK series Layer 2 protocol. It has just been launched on the main network, but the ZK series solutions are more recognized and more advanced in the industry.
Starknet: The use of STARKs is different from Zksync's proof method, which is conducive to processing large orders, but the compatibility is poor.
The Zk rollup related agreement of issued Token:
Dydx: DeFi representative application of Ethereum Layer 2, leading derivative DEX.
Loopring (Loopring Protocol): Token IRC, launched at the end of 2019, is more like an application than a network, supporting DEX, NFT orders, etc.
Immutable: Token IMX, a Layer 2 that facilitates the exchange of game NFT assets.
Cross-chain track: layerzero, etc.
Layer 2 is essentially a multi-chain operation, so I am also optimistic about the cross-chain protocol layerzero, which is currently the hottest cross-chain protocol. In "National "Wool Party", which is the next "big hair" worth paying attention to?" "Introduced in detail in the article, its competing products include well-known DOT and so on.
DA track
Since blob data can only be stored for a short period of time, there are problems with the call of historical data. Then there will be a new development channel for decentralized storage protocols. At the same time, the Layer 2 expansion solution also needs to use the data availability layer.
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