Upcoming Testnets Completion
The Ethereum Foundation recently confirmed that the next two stages of the awaited upgrade, named Sepolia and Holesky testnets, are set to be finished by early February.
Mainnet Upgrade Timeline
If the Sepolia and Holesky upgrades are successfully completed, the mainnet upgrade called Dencun is scheduled to go live on Ethereum in March.
Scalability Improvement
Ethereum has long faced scalability issues causing network congestion and high transaction costs.
The upcoming upgrade aims to tackle these challenges, making Ethereum faster and cheaper.
Proto-Danksharding (EIP-4844)
The key feature of the upgrade, known as proto-danksharding or EIP-4844, is designed to significantly improve scalability.
It is expected to allow the network to process over 100,000 transactions per second at a lower cost.
Layer-2 Solutions
The upgrade also aims to make Layer-2 solutions, including Optimism, more cost-effective.
Layer-2 solutions operate alongside the main Ethereum network, enabling quicker transactions by bypassing the main blockchain.
Network Transition
Ethereum has been consistently improving, notably transitioning from proof of work to proof of stake in 2022, referred to as “the merge.”
This transition is part of Ethereum’s ongoing efforts to enhance functionality and address existing limitations.
Current State of Ethereum
Ethereum, supporting the second-largest cryptocurrency (ETH), historically struggled with a congested network.
This congestion made it challenging and expensive for users to build apps or send funds.
The upcoming upgrade is expected to alleviate these issues, improving the overall efficiency of the Ethereum network.