To dive deeper, check out the complete article from original source:
https://droomdroom.com/role-of-dencun-upgrade-in-reducing-eth-gas-fee/
The Dencun Upgrade for Ethereum significantly reduced gas fees by incorporating “blobs” 🟦, a new storage concept that processes multiple transactions at the cost of one. This innovation is part of the Surge series of upgrades aimed at enhancing Ethereum’s efficiency.
Key Points:
Purpose: The upgrade was necessary to tackle the blockchain congestion problem, which slowed down transaction speeds to 10–15 TPS and raised gas fees to over 300 Gwei at times, hindering Ethereum’s wider adoption.
Concept: Blobs are temporary on-chain storage used to bundle transactions. They are validated by summarizing the data into a Merkle root, which is then verified. Once validated, the individual transactions are deleted, leaving only the summary.
Implementation: Blobs primarily benefit protocols that use significant gas, such as Layer-2 (L2) and Layer-3 (L3) solutions. These protocols can now post multiple transactions at once, drastically lowering their costs and thus reducing overall gas demand and prices.
Impact: After the upgrade, gas prices dropped from an average of 98 Gwei to just 8 Gwei, with minimum fees hitting 1 Gwei. This reduction in fees has also boosted security by ensuring data is stored on the Ethereum blockchain, making it more credible and secure.
Network Congestion: The upgrade alleviated congestion, enabling bulk transaction processors to switch to a more cost-effective method. This freed up gas for individual users, promoting higher usage of Ethereum due to the lower fees.
Overall, the Dencun Upgrade has made Ethereum more efficient and affordable, paving the way for broader adoption and usage 🚀.
