Ethereum Rollups Start Reaping Dencun Benefits: 99% Fee Drops Reported in Some Cases
ETH CRYPTO_NEWS
Ethereum rollups, the layer 2 scaling structures, have started reaping the benefits of the recently applied Dencun upgrade. The update, which included EIP-4844, also known as Proto-Danksharding, has allowed transaction fees to decrease by 99% in some cases, with Arbitrum, Base, Optimism, and Starknet becoming cheaper across the board.
Ethereum Dencun Upgrade Reduced Rollup Fees Drastically
Ethereum has made using its scaling solutions cheaper with Dencun. The recently applied upgrade, which implemented EIP-4844, also known as Proto-Danksharding, to make rollup transactions cheaper, is already being praised by users who can now transact by paying more affordable fees. Improvements were reported in several operations using solutions like Arbitrum, Base, Optimism, and Starknet.
Brian Armstrong, CEO of Coinbase, praised the changes brought by Dencun, noticing that a simple transaction with a cost of $0.3 now had a cost of $0.005 in Base. Armstrong stated:
Reducing transaction fees and confirmation times on Layer 2 will open up so many more use cases for crypto. We’re finally getting scalability.
Hayden Adam, the founder of the decentralized exchange Uniswap, also noted the vast reduction in fees while using Uniswap to make a currency swap using Optimism, which now costs $0.01. Hayden stressed:
Let’s f**king go, we’re scaling ethereum. Huge shoutout to everyone involved in shipping Dencun.
Using Starknet, another Ethereum rollup, to make an in-app swap with Argent X, a Starknet wallet, also reduced its cost by 99%, going from $6.82 to $0.04. These fee reductions might open Ethereum’s doors for new users priced out of the network due to the massive fees of using L1 and rollups compared to other smart contracts-enabled blockchains, like Solana and Avalanche.
However, some have pointed out that these solutions are centralized and present dangers for the users parking their funds on them. Nikita Zhavoronkov, the lead developer of Blockchair, explained that Dencun constituted a big gain for companies while exposing users to L2-centric risks.
Before, Zhavoronkov had warned about the risks of holding funds in Arbitrum One, as these “could be instantly rug-pulled by the “security council” via an “emergency action” at any moment.”
Source : Bitcoin News by Sergio Goschenko / Mar 15, 2024