Ethereum developers are inching closer to shipping Dencun, but some experts are unsure whether the upgrade will deliver on its promise.
Days before Dencun was scheduled to be introduced to Ethereum's mainnet, two industry veterans offered differing opinions on the implications of this long-awaited upgrade as Ether (ETH) prices soared.
The hype and crypto market euphoria pushed ETH further to a two-year high, with the cryptocurrency surpassing $4,000 for the first time since the peak of the previous bull cycle in late 2021.
Core DAO, Wormhole Expert on Ethereum Upgrades
Ethereum developers said Dencun will implement enhanced data availability for layer 2 solutions such as Arbitrum and Optimism, allowing for increased transaction capacity with lower gas fees.
Rich Rines, an early contributor to Core DAO, said in a statement received by crypto.news that the focus on Ethereum L2 may have unforeseen issues with liquidity and on-chain fragmentation. He said that there is.
This should improve TPS across the network, but I doubt this will be a long-term fix. Over-reliance on Layer 2 can lead to ecosystem fragmentation and fluidity as activity tends to move away from the base layer. Additionally, Layer 2 may include more trust assumptions, which could have a suboptimal impact on the base layer if transactions and fees are increasingly removed from the base chain.
Rich Rines, early contributor to Core DAO
Lines noted that observers will need to closely monitor Denkun's progress after deployment, which is expected to be completed by March 13 barring any unforeseen delays. The Core DAO contributor also said that there could be questions about whether the purpose of the upgrade was the right goal in the first place.
Meanwhile, Wormhole Foundation co-founder and CCO Robin Varkey is optimistic about Denkun, predicting that the upgrade will result in a significant increase in cross-chain asset transfers. ing.
The Dencun upgrade is definitely a positive development for the crypto industry. This upgrade actually enhances Ethereum's scalability and security, which bodes well for defi and overall interoperability. This makes moving assets on Ethereum cheaper and easier, allowing for more affordable transactions.
Robin Varkey, co-founder and chief operating officer (CCO) of the Wormhole Foundation;
Barkey opined that the Dencun upgrade will enhance defi usage, accessibility, and dynamism, as lower fees will encourage on-chain participation in the largest decentralized ecosystem in crypto.
