first level title

The impact of the Cancun upgrade

The Cancun upgrade will enable the implementation of the "blob transaction" type. What is a blob transaction? In the past, L2 would periodically store some data on the L1 main chain. This step would consume a lot of ETH GAS fees, which would then be evenly distributed to users who traded on L2 in the past period of time to achieve cost reduction.

And after the Cancun upgrade is complete, L2 transactions will be stored in blobs. Blob is more like the "external storage space" of Ethereum. Compared with the previous L1 chain storage method, blob storage cost is cheaper and the space is larger, and the cost of each L2 transaction will be dozens of times cheaper. This will bring major changes to Ethereum L2, and promote Ethereum L2 to achieve the goal of cost reduction and speed improvement.

The Cancun upgrade will be an important turning point for the Ethereum ecosystem for the following reasons:

• Higher transaction speed and throughput: In the future, L2 transactions processed using Optimistic Rollup technology will greatly increase transaction speed and throughput without sacrificing security. This will help alleviate the congestion problem of the Ethereum network and make the application of the Ethereum ecosystem more efficient.

• Lower Transaction Fees: Due to the increased transaction volume on the Ethereum network, transaction fees are also getting higher. The Cancún upgrade will result in significantly lower L2 transaction fees, allowing more people to use Ethereum’s L2 network.

• Better User Experience: The Cancun upgrade will improve the L2 user experience of the Ethereum ecosystem. The increase in transaction speed and reduction in transaction fees will allow users to use DeFi faster and cheaper to trade NFT.

• More application scenarios: The Cancun upgrade will provide more L2 application scenarios for the Ethereum ecosystem. Higher transaction speed and lower transaction fees will make more people willing to use the Ethereum L2 network to develop and deploy applications, thereby further promoting the development of the Ethereum ecosystem.

first level title

L2 projects that may benefit

Arbitrum and Optimism

Arbitrum and Optimism are the current leading Ethereum L2 projects, with the highest TVL and the largest number of users, have been running for many years, have a mature ecosystem, and are characterized by low risk and medium return.

Boba and Metis

Boba and Metis are early Optimism fork projects, and their performance is not inferior to the main L2, but the ecology has just started and there are still few applications.

Loopring、Immutable、dYdX

Loopring, Immutable, dYdX are early app-specific zkRollup projects that would be a good target for zk Layer 2 when general purpose zkRollups don't have tokens.

Polygon

Polygon is not L2, but they have several ZK Layer 2 solutions, including Polygon ZKEVM, which have launched the main network and are rapidly iterating.

SHIB and CULT

first level title

Prospects for Cancun's upgrade

The Cancun upgrade will implement EIP-4844, the implementation of the blob transaction type. This change will greatly enhance the scalability of the Ethereum L2 network, further improving the throughput and transaction speed of the network. This means that Ethereum will be able to better support applications with high transaction loads, such as DeFi and NFT, thereby bringing more users and higher market value to these applications.

Allen, the founder of Ebunker, talked about the Cancun upgrade and said that after the completion of the Shanghai upgrade, the most anticipated thing in 2023 is the Cancun upgrade. Big performance boost. Sharding was a pity back then, and today's alternatives are finally starting to emerge.

Second, the Deneb upgrade also takes into account other code upgrades. Among them, EIP-4788 can disclose the status of the Ethereum consensus layer in the Ethereum execution layer, which will help to minimize trust access, thereby promoting the development of related applications such as pledge pools, re-pledging protocols, and MEV. At the same time, EIP-6914 can reuse validator codes that have completely withdrawn from the network and have not been active for a period of time, which will bring more benefits to validators.

In addition, the Cancun upgrade also proposed a potential code change involving backfilling data from the Beacon Chain genesis block and creating a new "historical summary" content, which may lead to increased storage requirements for the Ethereum network. However, it also lays the foundation for future development of Ethereum, providing better services for more applications.

Finally, the Cancun upgrade also includes several other proposals, such as PR 3175 and EIP-6493, which will further strengthen the security and consistency of the Ethereum network and provide strong support for the long-term development of the Ethereum ecosystem.

In short, the Cancun upgrade will be an important milestone in the development of Ethereum, which will further improve the performance, security and scalability of the Ethereum network, and provide better services for more applications.

Ebunker official website:https://www.ebunker.io