Debating Dencun: Will Ethereum's Big Update Help or Harm the Network?

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Sam is CoinDesk's deputy managing editor for tech and protocols. He reports on decentralized technology, infrastructure and governance. He owns ETH and BTC.

Proto-danksharding, the main change coming with the Dencun update , marks Ethereum's first step down the road of"sharding," a method for increasing the chain's transaction capacity by adding new lanes to its proverbial blockchain highway.

"The Dencun upgrade is Ethereum’s response to clear needs for greater scalability," Rich Rines, an initial contributor at Core DAO, which develops blockchain infrastructure, said in a message to CoinDesk. With Dencun, Ethereum is"focusing on empowering Layer 2 solutions," but"questions remain whether this is a long-term fix."

Instead of bringing down Ethereum's gas fees, which could take years to plan and implement, the network's co-founder, Vitalik Buterin, has been among the leading voices to push the network towards a"rollup-centric" roadmap that places the onus of scaling primarily into the lap of third-party layer-2 networks.

"The natural outcome of wanting to push users from Ethereum to other L2s means that you are ceding your dominance as a general purpose platform for general purpose compute," said Kim."You're saying that other protocols should do that responsibility of general purpose computation." Not all layer-2 rulesets are created equal: Despite billions of dollars in transaction volumes, all of today's biggest rollups have"training wheels" – things like

 

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