Summary: The anticipated Ethereum Cancun upgrade, scheduled for late 2023, aims to enhance network scalability and security through vital Ethereum Improvement Proposals (EIPs). Notably, EIP-4844 lays the groundwork for DankSharding implementations. The inclusion of EIP-7514, altering the validator growth rate, has sparked significant debate within the community. Stakeholders are advised to stay tuned to official channels for precise rollout dates and ongoing discussions.
What is the Ethereum Cancun Upgrade?
The Ethereum Cancun is a significant forthcoming upgrade on the Ethereum blockchain, slated to enhance the network's scalability and security features. Part of a dual upgrade alongside the Deneb update on the Consensus Layer (CL), the Cancun upgrade focuses on the Execution Layer (EL) and includes a series of Ethereum Improvement Proposals (EIPs) designed to optimize data storage and reduce costs. A notable inclusion is the EIP-4844, also known as Proto-DankSharding, which lays the foundation for future DankSharding implementations.
Projected to launch by the end of 2023, this upgrade aims to fortify the existing structure of the Ethereum network, fostering improvements in various area, including cross-chain bridge designs, stake pool functionalities, and smart contract security. The developments are keenly discussed and analyzed in the Ethereum community, showcasing a collaborative effort towards a more efficient and robust blockchain network.
What EIPs are in Ethereum Cancun?
The Ethereum Cancun upgrade is a substantial move to enhance the network's operational efficiency and security. This upgrade is composed of six pivotal Ethereum Improvement Proposals (EIPs), each bringing unique advancements to the system. These are:
- EIP-4844 (Proto-DankSharding): A groundbreaking proposal that lays the foundation for the complete implementation of DankSharding, aiming to boost the network's scalability significantly.
- EIP-1153: Focuses on decreasing the cost associated with storing data on the blockchain, which in turn amplifies the block space availability, facilitating smoother transactions.
- EIP-4788: Aims to bolster the architecture of cross-chain bridges and stake pools, thereby enhancing interoperability and fostering a more secure and efficient staking process.
- EIP-5656: Incorporates minor code modifications in the Ethereum Virtual Machine, making the network more adaptable and streamlined.
- EIP-6780: Takes steps to remove certain codes that have the potential to terminate smart contracts, thereby increasing the overall security and reliability of the network.
- EIP-7514: This EIP was added in September and aims to implement a max epoch churn limit, shifting the validator growth rate from an exponential to a linear trajectory, thereby capping the epoch churn limit.
These EIPs are orchestrated to work synergistically, setting the stage for a more resilient, secure, and user-friendly Ethereum blockchain.
What is EIP-4844 and Danksharding?
EIP-4844, popularly known as "Danksharding", is a significant proposal in the upcoming Ethereum Cancun upgrade that primarily focuses on enhancing the network's scalability and data storage capabilities. This proposal introduces a novel data structure known as "blobs", which are essentially small chunks of data that are distributed across various shards, effectively optimizing the way data is stored and accessed within the network.
The introduction of blobs is expected to significantly reduce the costs associated with data storage on the blockchain, making the network more efficient and faster. Furthermore, by laying the groundwork for the full implementation of Danksharding, it facilitates a more seamless integration of shards, thereby enhancing the overall performance and scalability of the Ethereum blockchain. The technical community eagerly anticipates further details and the eventual rollout of this initiative, as it represents a substantial step towards achieving a more scalable and cost-effective Ethereum network.
Why is EIP-7514 Controversial?
EIP-7514, introduced in the latter stages before the anticipated Cancun upgrade, has stirred much discussion and controversy within the Ethereum community. The proposal, spearheaded by dapplion and Tim Beiko, seeks to amend the rate of validator growth, transitioning from an exponential to a linear pattern by establishing a cap on the epoch churn limit. This significant change to the monetary policy aims to curb the rapid growth of the ETH supply being staked, elongating the timeline to hit pivotal milestones of total ETH supply staked.
The late inclusion of this EIP has been a cause for concern, as many feel it doesn't allow sufficient time for comprehensive community discourse and consensus building. Furthermore, it presents a shift in the economic dynamics of the Ethereum network, possibly influencing aspects like staking rewards and network security. While designed to mitigate potential negative externalities associated with a high level of staked ETH, it remains a contentious topic, necessitating thorough evaluation and discussions in the community.
Ethereum Cancun Expected Date
As of the latest updates, the Deneb-Cancun upgrade is anticipated to be rolled out by the end of 2023. However, a fixed date has not been confirmed. Notably, Alex Stokes, a researcher at the Ethereum Foundation, has mentioned that October 2023 might be a plausible target date for initiating the Cancun segment of the upgrade. It's recommended to keep an eye on official announcements for a precise rollout date.
Final Thoughts
As we approach the end of 2023, the Ethereum community is abuzz with anticipation for the forthcoming Deneb-Cancun upgrade, a pivotal move aimed at bolstering the network's scalability and security. This milestone features several notable Ethereum Improvement Proposals (EIPs), including the groundbreaking EIP-4844, paving the way for future DankSharding implementations.
While the inclusion of EIP-7514, which proposes a shift in the economic dynamics of the network, has sparked substantial debate, it highlights the collaborative and evolving spirit of the Ethereum ecosystem. As discussions continue and the expected date draws near, stakeholders and enthusiasts are encouraged to stay tuned to official channels for the most accurate and up-to-date information on this significant development in the Ethereum landscape.
Dylan Matthews is the Co-Founder and head of operations at Buy Bitcoin Bank, with a background in engineering and experience as a Prop Trader. He has leveraged his knowledge and skills to build and scale the platform, providing users with a seamless experience for buying and selling cryptocurrency.
