ETH Pump Incoming?! Dencun Could Change Ethereum Forever!

Ethereum is about to change forever That's because the imminent denune Upgrade will be ethereum's biggest Milestone since the merge denune will See critical changes not just to Ethereum itself but to its entire layer 2 ecosystem that's why in today's video We'll be looking at denune in detail Examining how it will benefit ethereum And its layer tws and considering what It could all mean for your portfolio so If you hold eth or any layer 2 tokens Then this is a video you have to Watch I'll start of course by saying That I am not a financial adviser and Nothing in this video should be Considered Financial or investment Advice and you're in no position to give Financial advice it's purely for Educational purposes and is meant to be Used to assist you in your quest for Crypto knowledge I'll also add that many Of the team here at coin Bureau hold eth As part of their portfolio myself Included I also hold both ARB and IMX And some of my colleagues hold other Layer 2 tokens besides don't worry Though we promis to remain objective in Our review and if you want to see what Else we hold you can see our portfolios And so much more by becoming a member of The coin Bureau Club the link is in the Description and if you're looking to Trade eth or layer 2 tokens be sure to

Check out the coin Bureau deals page It's got exclusive trading fee discounts Of up to 60% sign up bonuses of up to $50,000 and some of the best discounts On Hardware wallets for you to store it All on these offers are time limited so Get in while you still can the link will Be down below okay so with all that said 2024 is shaping up to be one of the Biggest years for ethereum's development Now we covered what's ahead for the Project in our recent Rec ethereum Update which I'll leave link to down in The description for you to check out Later for now though let's zoom in on Something we touched on in that review That's scheduled to take place Imminently and that is of course Denon before we dive into the denune Upgrade though it's important to Understand the timeline of Milestones That ethereum has already achieved first The beacon chain now this was a separate Chain that was launched alongside the Ethereum main net on the 1st of December 2020 and was used on various test Nets To ensure that any bugs and glitches Could be identified and patched without Affecting ethereum itself the beacon Chain was built as the first step to Ethereum's all important transition from A proof of work to a proof of stake Blockchain with the beacon chain serving As ethereum's all new consensus layer

After almost 2 years of testing the Historic merge event took place the 15th Of September 2022 saw the ethereum main Net adopt the beacon chains method of Consensus in one of the most impressive Feats in the history of software Development it was an extremely complex Process and yet ethereum devs managed to Pull it off without a hitch then on the 12th of April 20123 the chappella Upgrade was deployed this allowed Stakers to start with withdrawing their Staked eth and any staking rewards Acquired over time there were some Concerns in the leadup to chappella that This unstaking would tank eth's price But in fact the upgrade boosted Confidence in the network and allowed More users to feel comfortable with Staking their eth the next Milestone was The launch of the hsky test net which Went live on the 28th of September 2023 Now hsky is intended to replace the Girly test net after its final use for Context Gurley was launched back in 2019 As the first multic client test net hsky On the other hand was introduced to Address gle's test net eth supply issues And provides an environment for Developers to test their ambitious Staking plans and develop other protocol Level ethereum infrastructure and this Brings us nicely to the final upgrade to Be implemented on gurly before Holi

Takes over denune itself now if you're Wondering where the term Denon comes From it's a portmanto of denb and Cancun Both of which are names given to the Consensus layer and the execution layer Respectively as a fun fact each Consensus layer upgrade gets its name From a star chosen in alphabetical order Alter Bellatrix capella and in this Instance denb the next consensus upgrade Will be named Electra the more you know Can on the other hand follows the Tradition of naming execution layer Upgrades after cities that have Previously hosted Devcon so think London Prague and Shanghai to name but a few so The name Denon is analogous to the Previous chappella upgrade which was Itself a portmanto of Shanghai and Capella ethereum devs sure do love Giving those upgrades some weird names And by the way if you're enjoying this Video so far show it by hitting that Like button to give it a boost anywh who Denune is the data upgrade that focuses On data availability incorporating a Process called Proto sharding we'll come Back to that later but for now just know That the deployment of this upgrade is The first step towards scaling ethereum And yes this scalability will mean Cheaper gas fees Finally now the first step towards the Implementation of denune took place on

The 17th of January this year in an Event that was live streamed on Ethereum's official YouTube channel it Was originally supposed to take place Back in 2023 but was delayed in October It was deployed on the girly test net And Incorporated much of the Functionality needed for sharding with The long-term goal for ethereum to meet Those ever Rising scalability Demands now unfortunately this test net Deployment of denune wasn't exactly Smooth sailing it experienced a delay of Around 4 hours but to the developer's Credit did still go ahead on the day Planned the delay was attributed to a Bug in ethereum's prism Implementation this bug had the Potential to cause a chain split which Would have prevented the chain from Sinking with other nodes impressively Though this issue was identified and Patched in under 4 hours meaning that The deployment could still still go Ahead as scheduled Tim boo one of the Lead developers at the ethereum Foundation noted on X that the fork Occurred at around 0600 UTC after the Issue was promptly addressed by the Development team paritosh gyin a devops Engineer at the ethereum foundation also Commented on the efficiency of the patch Saying quote we went from Fork to issue To triage to fix to finality in under 4

Hours nice work sir And this just goes to show why triing Any major changes on test Nets is such a Crucial step as denon's goly deployment Showed issues can quickly be spotted and Rectified without affecting the main Chain or in theory the confidence of eth Investors what's strange though is that It appears confidence was in fact shaken Despite this brief issue only being at The test net level eth's price took a Bit of a dip with when it was reported This doesn't really make much sense Considering that this is exactly what Test Nets were designed For denon's sapoia deployment on the Other hand was far less eventful for all The right reasons it was finalized Exactly as scheduled on the 30th of January and experienced no hiccups or Delays of any kind in fact ethereum Developer Terren even took to X to Apologize for how straightforward it was He was joking obviously but it does make You wonder what would have happened to Eth's price had there been another bump In the road so this leaves just one more Test net to go the deployment to the Hsky network this is due to take place On the 7th of February just a week after Sepolia it is important to note however That the deployment of the hsky test net Itself wasn't straightforward hsky was Originally due to go live on the 15 of

September last year which would have Marked the first anniversary of the Merge however hsky was delayed by 2 Weeks to the 28th after it initially Experienced a Mis launch according to Paratos the initial launch failed due to A misconfiguration in the Genesis files What this essentially means is that if Hsky has any further undetected bugs Then denon's deployment there could face Some difficulties just as it did when Deploying to logically this would Have a similar effect on eth's price However assuming all goes well ethereum Devs will then group together on the Following day for an all core developers Call or ACDC due to take place on the 8th of February this will be the call Where the team selects the date for the Main event itself denon's main net Rollout exciting times now ethereum's Denon upgrade is actually a simultaneous Rollout of nine different ethereum Improvement proposals more commonly Referred to as eips each individual EIP Is fairly complicated which isn't all That surprising considering the Complexity of ethereum as a whole as Such however explaining each of them in Detail is outside the scope of this Video for now though here's a quick Overview in order to help you understand Denon's many moving parts now these are All fairly technical but stick with me

Here and note that I'll be listing these In numerical order for Simplicity sake Okay so first we have EIP 1153 which Allows data to be discarded after every Transaction thereby making storage Cheaper and smart contracts more Efficient next is EIP 4788 which creates A sort of inbuilt Oracle protocol it Does this by exposing information from Beacon chain blocks to the ethereum Virtual machine or evm and stores them In a smart contract on the execution Layer this new Oracle means that External thirdparty oracles are no Longer needed and as a cherry on top Platforms that offer staking pools Raking Arrangements smart contract Bridges and so on can now benefit from This enhanced data availability to Become even more fluid in their Operation okay the next EIP is 5656 Which provides a more streamlined method Of copying areas of memory within the Evm significantly reducing the gas costs Involved then we have EIP 6780 which Alters the self-destruct smart contract To only operate under specific Conditions which in turn improves the Overall stability of the network now the Next three eips all work in tandem with The target of supporting validator Management and efficiency by Collectively improving node operations On

Ethereum these eips are 7044 745 and 7514 and finally we have EIP 7516 which allows ethereum smart Contracts to access the current base fee For data blobs directly on chain more About those blobs later for now though Just know that this EIP helps rollup Contracts to manage the costs of these Blobs more effectively pH okay that was Quite a lot of information to digest There give yourself a well-deserved pat On the back I'll leave a handy link Below to the list of all the eips I've Just mentioned by the way in case you Want to do a deeper dive into each of Them on your own fair warning though There is a lot lot of technical computer Science mumbo jumbo in There now the eagle eyed and ow among You may have noticed that I mentioned That there were nine proposals but I Only listed eight and that's because There's one more EIP that takes Center Stage when it comes to ethereum's denune Upgrade the EIP in question here is 4844 so EIP 4844 is the implementation Of a process dubbed Proto sharding as The name suggests Proto sharding is part Of the overall sharding process that Ethereum is aiming towards as most of You will know ethereum sharding is a Concept that's been around since 2016

And is the process that we'll see the Ethereum blockchain broken down into Smaller portions known as shards these Shards are much easier to process and Therefore will greatly enhance the per Performance of the overall Network Proto Dan sharding is named after two key Ethereum Foundation researchers protol Lamba and danrad Feist yep it's another Wacky name created by splicing two very Different words together nerds eh anyway EIP 4844 will bring Proto Dan sharding With the introduction of binary large Objects or blobs now these blobs are What makes tenun so important as they Serve as the critical first step towards Sharding now blobs are collections of Data that are stored offchain and Attached to other blocks as ethereum Developer Ben Edington puts it in a not Confusing at all way quote EIP 4844 Bolts blobs onto blocks try saying that After a few dry martinis anyway blobs Are a new type of persistent memory on Ethereum the current persistent memory Being used is call data now where blobs Will be faster and cheaper call data is Slower and more expensive this is Because it needs to be kept on every Single node forever naturally this Involves a lot of storage requirements And is subsequently expensive and Inefficient blobs on the other hand are Temporarily stored although blobs are

Also stored on every node of the Blockchain they're automatically deleted After around 2 weeks logically this Greatly reduces those storage Requirements now to allow these blobs to Be processed EIP 4844 also introduces a New transaction type called blob Carrying Transactions data blobs themselves are Quite large in size but only a hash of The Blob is attached to the blog which Serves as an identifier to that blob as The name suggests blob carrying Transactions allow blocks to be Processed on ethereum's consensus layer With the additional data blob attached To them as blobs are processed along With blocks they're also stored on every Node and therefore need paying for However blobs and blocks aren't the same Thing and as such the already existing Fee market for blocks isn't really Suitable for blobs this is why EIP 4844 Also introduces a mult multidimensional Fee Market which operates under the same Structure as the existing fee Market Used to set gas fees on blocks now Proto Dan sharding is the first major step Towards sharding as it introduces a lot Of the necessary functionality needed For sharding but without actually Introducing sharding itself this is Because the path to sharding involves a Multitude of complex upgrades and if all

Those were rolled out at once it would Greatly increase the chances of one of These going wrong recall that the denune Upgrade is a collection of nine highly Technical eips and that's just the start Of the journey that lies ahead now Proto Dank sharding serves as the precursor to Dank sharding itself which will be the Method of sharding that ethereum will Undergo for reference dank sharding and Regular sharding are interrelated but Different dank sharding is the sharding Process named after ethereum researcher Danrad Feist who proposed his vision of How sharding should be rolled out there Have been other sharding propositions Put forward by others in the past but Dank RADS was somewhat simpler in Comparison and thus dank sharding was Given the green light key Innovations of Dank sharding include the introduction Of a new specialized class of network Participants called block Builders who Process blocks and bid on the right to Choose their contents another key Innovation is the introduction of a Merged fee Market which involves a Single proposer that selects all the Data and transactions for a particular Slot as opposed to having multiple Shards that each have their own blocks And Proposers to make sure this doesn't Bring new system requirement challenges

To validators dank sharding will Separate block proposal and block Builders without getting too technical Here this will streamline the block Verification and data availability Sampling for these validators and will Accelerate the overall handling of data EIP 4844 Proto dank sharding acts as the Framework to make dank sharding possible Which sets the stage for ethereum to Become truly scalable okay so as you'll Have heard a lot of complex sounding Stuff is happening on ethereum but what Does it all mean for eth well put simply The denune upgrade will have profound Benefits for ethereum but in particular Its layer 2 rollup Solutions layer 2os Use storage on the layer one in order to Operate while leveraging ethereum's Security currently layer tws are Ethereum's only trustless scaling Solution now this method of storage is Expensive however in fact approximately 90% of all layer 2 transaction fees are Paid towards this particular overhead Layer 2 transactions are much cheaper Than transactions on the ethereum main Net but there's still room for Improvement here which denune aims to Address because denune provides more Block space and temporary data storage As well as blobs that take up less space And can be processed faster than blocks This results in reduced costs and faster

Transactions a real win-win scenario and It's not not just a small difference Either the supercharge inefficiency for Rollup layer 2os means that transactions Are predicted to be 10 to 100 times Cheaper on top of this a coin shares Report we recently summarized estimates That layer 2 could be anywhere between 45 and 100x faster this is bigger than You may think take a second to consider That denune is just one stage of Ethereum's overall goal of sharding if Layer 2 transaction costs can already be Reduced by 10 to 100 times their price At this stage just imagine how much Cheaper eth transactions will be once Full sharding is rolled out it is Important to note however that denune Will not reduce eth gas fees at this Stage something that was confirmed by Tim B on an episode of the bankless Podcast linked Below how however ethereum will Nevertheless see the benefits of denune At the layer one level with ethereum Already relying on layer 2 solutions to Operate more efficiency the layer one Main net will benefit from an increased Level of scalability after all the more That layer 2os benefit from Denon Scalability the more efficiently the Transactions on the main net can be Processed and there's more with layer 2 Solutions having a much lower overhead

And a greatly reduced workload this Could free up developers to work on more Advanced applications and Protocols this could see a surge in Various sectors such as blockchain Gaming social media networks brand new Daps and much much more besides this Will help further accelerate the overall Adoption of the ethereum network as Usability is improved over time what's More ethereum's impressive Tech and its Popularity as the second largest crypto Could also see more new users adopt Cryptocurrency on a wider scale so Denune is set to benefit not only Ethereum's layer 2os but ethereum itself What's not to like well as it happens There are a few concerns around Denon The first concern is eth's Supply while Denune itself won't affect gas fees Sharding will shard will see a massive Reduction in the amount of eth required To pay for transactions and this means a Lot less eth will be burned the flip Side to this Supply challenge is an Increase in demand however as ethereum Becomes much cheaper to use more and More people will feel confident in using It especially as it maintains its Position as the second largest crypto by Market cap when you consider that e is Still in second place despite its high Transaction costs it becomes almost Certain that ethereum's adoption will be

Supercharged when those fees are Eventually lowered this ties into our Second concern and that's how long it Will take for dank sharding to be Finalized this Milestone is still Several years away according to Ethereum's official website the problem Here is that crypto moves fast something I'm sure you folks are all too familiar With what happens between now and then Is anyone guess but it's almost certain That ethereum will see some very stiff Competition from other projects that can In many cases already offer what Ethereum is still working towards in Fact this process is already well Underway this brings us to the third Concern and that is of course Competition from other layer one Blockchains if you've been paying any Attention to the crypto Market in recent Months you'll know that eth has been Lagging its price in fat has gone up Much slower than most and it has Particularly struggled against BTC the Same however cannot be said for some Other layer ones which have seen Exponential growth and Rapid adoption The most notable example here is of Course salana which has seen a constant Influx of buying pressure for many Reasons one of them being its impressive Transaction speeds and much cheaper fees We recently did a video comparing salana

And ethereum by the way so you can see Which one came out on top using the link Below the point here is that although Ethereum has made multiple technological Leaps to improve its blockchain it still Has a long way to go before it reaches The promised land of scalability for now Ethereum is second only to Bitcoin in a Few years who knows the landscape could Have changed Entirely nevertheless despite these Concerns it's safe to say that when it Comes to the denune upgrade there is a Lot to be excited about while denune Isn't a complete solution for ethereum Scalability concerns it's another leap In the right direction and with the Increasing competition from other layer One blockchains the steps taken towards Ethereum scalability will only solidify Its position as the second largest Cryptocurrency out there sure there may Have been a bump in the road when Deploying denune to the gurly test net However this also highlighted two Important things to keep in mind first It gave us a prime example of just how Important test Nets really are and why The roll out of upgrades can take some Time to perfect and second it showed us That ethereum developers are at the top Of their game to discover a major bug Like a chains split and then have it Patched and deployed in less than 4

Hours is a testament to their ability This alone is a sign that ethereum eum Will likely be robust enough to overcome Many of the challenges it may face in The future remember as well that Ethereum has the most active developers Of any crypto Blockchain tenun is a pivotal moment in Ethereum's overall road map and it will Be fascinating to see how this will all Play a part in The Wider adoption of not Just ethereum but cryptocurrency as a Whole as we approach the next bull Market we'll see a fresh wave of brand New users hit the space if these new Users are no longer being put off by the Prospect of paying ridiculous fees to do Basic transactions on ethereum they will Be more inclined to stay to learn and to Adopt crypto more widely and at the end Of the day that is what it's all About and that is all for today's video Folks so if you found it insightful let Us know by Smashing that like button if You want to see more educational crypto Content subscribe to the channel and Ping that notification Bell if you want To help others gain some insight into This particular topic consider sharing This video with them if you want some of The hottest crypto info delivered Straight to your inbox why not sign up To our free Weekly Newsletter and if You'd like to join our fast growing

Community then good news the coin Bureau Now has a Discord server with a growing Community of our fans and supporters the Invite link can be found below okay Thank you all so much for watching and I'll see you next time this is Guy Signing [Music] Off