TL; DR
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The Dencun upgrade will reduce fees on Ethereum Layer 2s by up to 75%, and is an important step in improving the Ethereum user experience (next step: account abstraction).
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Ethereum is getting a major upgrade today!
The ‘Dencun’ upgrade aims to reduce transaction fees on Ethereum Layer 2s (L2s) by up to 75%.
(L2s are a type of third-party apps/use cases built on top of Ethereum, just like you have third-party apps on your smartphone).
“Okay, cheaper cost – is that it?”
Rather, but also not. This is one step in a broader plan.
Right now, L2 costs are in what we’d call the “I think that’s OK” territory (the $0.10 – $0.50 range). What Dencun aims to do is bring these fees into the “I really don’t care” range (think: $0.02 – $0.12).
It’s a step in the right direction, but there’s more on the core Ethereum developer’s to-do list…
In particular, ‘account abstraction’ – which is just a more concise way of saying:
“The process of making sure the user experience isn’t bad, and making the broader functionality feel more like a polished Web2 banking app.”
That is, allow users to set up automated transfers, purchase subscriptions, and set up joint accounts on Ethereum – just as they would with a traditional bank account.
And the Dencun upgrade brings us one step closer to that reality!
