Although the test time of the Cancun upgrade has been delayed again and again, it has not affected the mentality of investors in the currency circle. The Cancun upgrade is mainly to promote Ethereum L2 to achieve the goals of cost reduction and speed improvement. So how many times will Cancun’s L2 price increase approximately? To achieve this goal, according to analysts’ predictions, it is very likely to increase by 100 times. For those who are new to the currency circle, they still don’t understand the significance of Cancun’s upgrade benefiting L2? It can attract widespread attention in the currency circle, and its main significance is high speed and low fees. This is the best news for traders. The editor below will tell you in detail.
According to data analysis, the Kakun upgrade will significantly increase the speed of the Ethereum Layer 2 network, which is expected to increase by 10 times or even 100 times, and reduce costs. The Kakun upgrade will introduce a "blob transaction" type implementation. In the past, the Layer 2 network would regularly store part of the data on the Layer 1 main chain. This step would consume a large amount of ETH GAS fees, and then these fees would be evenly distributed to users who transacted on Layer 2 to reduce the overall cost.
After the Cancun upgrade is completed, L2 transactions will be stored in blobs. Blob is more like the "external storage space" of Ethereum. Compared with the previous L1 on-chain storage method, blob storage cost is cheaper and the space is larger. 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 its goals of cost reduction and speed improvement.
After Cancun upgrades and implements EIP-4844, the scalability of the Ethereum L2 network will be significantly enhanced, and the network’s throughput and transaction speed will also be further improved. This will allow Ethereum to better adapt to high transaction volume applications such as DeFi and NFT, bringing more users and higher market value to these applications.
Allen, the founder of Ebunker, mentioned that after the Shanghai upgrade is completed, the most anticipated upgrade in 2023 is the upgrade in Cancun. It is expected that the Cancun upgrade will be successfully completed this fall, bringing significant performance improvements to Ethereum’s L2. Sharding didn't work out back then, but now alternatives are finally starting to show promise.
Deneb upgrade also considers other code upgrades. Among them, EIP-4788 can expose the status of the Ethereum consensus layer in the Ethereum execution layer, which will help minimize trust access and thus promote the development of pledge pools, re-staking protocols, MEV and other related applications. At the same time, EIP-6914 can reuse validator numbers that have completely exited the network and have been inactive for a period of time, which will bring more benefits to the validators.
Cancun’s upgrade to L2 is of great significance in terms of transaction speed, throughput, transaction fees, user experience and application scenarios. Next, the impact of these four aspects will be analyzed in detail.
1. Higher transaction speed and throughput:
In the future, L2 transactions processed using OptimisticRollup technology will greatly increase transaction speed and throughput without sacrificing security. This will help alleviate congestion issues on the Ethereum network and make applications in the Ethereum ecosystem more efficient.
2. Lower transaction fees:
As the transaction volume of the Ethereum network increases, transaction fees are becoming higher and higher. Cancun’s upgrade will significantly reduce L2 transaction fees, allowing more people to use Ethereum’s L2 network.
3. Better user experience:
The upgrade in Cancun will improve the L2 user experience of the Ethereum ecosystem. Increased transaction speeds and reduced transaction fees will allow users to use DeFi faster and cheaper to trade NFTs.
4. More application scenarios:
The upgrade in Cancun will provide more L2 application scenarios for the Ethereum ecosystem. Higher transaction speeds and lower transaction fees will make more people willing to use the Ethereum L2 network to develop and deploy applications, further promoting the development of the Ethereum ecosystem.
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