What to Expect with Ethereum’s Upcoming Denune Upgrade

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Ethereum’s journey towards scalability and improved functionality has been an ongoing process, with milestones such as the launch of the beacon chain and the historic merge event already achieved. However, the project’s most significant upgrade yet is just around the corner, and it promises to change Ethereum forever. This upgrade is none other than Denune, and in this blog, we will explore what this upgrade entails and how it will benefit Ethereum and its entire layer 2 ecosystem.

Firstly, let’s start with a brief overview of what Denune is all about. Denune upgrade is due to launch in Q1 2024. The name is a portmanteau of “denb” and “Cancun,” which are the names given to the consensus layer and execution layer, respectively. It focuses on data availability through a process called Proto sharding. Essentially, Proto sharding allows for the splitting of data into smaller chunks, allowing for more efficient processing and storage. This process is crucial for achieving scalability, which is one of the main objectives of Denune.

The deployment of Denune has been divided into multiple phases, with the first phase taking place on January 17th, 2021, on the Goerli test network. This initial deployment encountered a slight delay due to a bug in Ethereum’s prism implementation. However, the bug was quickly identified and fixed within four hours, showcasing the dedication and skill of Ethereum’s development team.

So what exactly does Denune bring to the table? Let’s dive into some of its key features and how they will benefit Ethereum and its users.

Improved Scalability

Scalability has been a pressing concern for Ethereum for years now, with high gas fees hindering its growth and adoption. The implementation of Denune is the first step towards addressing this issue. Through Proto sharding, data can be processed and stored more efficiently, allowing for increased scalability. This means that more transactions can be processed simultaneously, leading to faster and cheaper transactions for users.

Better Layer 2 Functionality

In addition to improving scalability, Denune also has significant implications for Ethereum’s entire layer 2 ecosystem. Layer 2 solutions, such as Arbitrum and Optimism, are already being used to alleviate Ethereum’s scalability issues. However, with the deployment of Denune, these solutions will become even more effective. This is because Proto sharding will allow for a more efficient and seamless interaction between the main Ethereum chain and layer 2 protocols. This, in turn, will lead to improved performance, lower costs, and better user experience.

EIPs Included in Denune

Denune will introduce several new Ethereum Improvement Proposals (EIPs) that will have a significant impact on the network’s functionality. Some of these include:

– EIP-7569: This EIP introduces changes to the Ethereum Virtual Machine (EVM) that will improve its efficiency and make it more compatible with layer 2 solutions.
– EIP-734: This EIP allows for a more flexible and accurate definition of contract code in the EVM.
– EIP-3541: This EIP addresses a vulnerability in smart contracts that can be exploited by malicious actors to manipulate transaction results.

The introduction of these EIPs will enhance Ethereum’s overall performance and security, making it more attractive to developers and users alike.

Danksharding Roadmap

Denune is just one part of Ethereum’s long-term roadmap towards scalability. The next step is the implementation of Danksharding, which is scheduled for release in 2024. Danksharding involves further enhancements to Proto sharding, allowing for even greater scalability and improved functionality. With Danksharding, Ethereum aims to achieve a transaction throughput of up to 100,000 transactions per second (TPS), a significant improvement from its current capacity of around 14 TPS.

How This Benefits Ethereum and Layer 2s

The implementation of Denune will bring significant benefits to Ethereum and its layer 2 protocols. With improved scalability, cheaper gas fees, and better layer 2 functionality, Ethereum will become more attractive for developers and users. This, in turn, will lead to increased adoption and usage, further driving the network’s growth and success. Additionally, with the upcoming Eth2 merge, which will see Ethereum transition from a proof-of-work to a proof-of-stake consensus algorithm, the implementation of Denune is crucial in ensuring the network’s smooth operation and continued success.


As with any major upgrade, there are bound to be concerns and potential challenges that may arise. Some critics have raised concerns about the complexity of Proto sharding and its potential impact on Ethereum’s security. However, the development team has thoroughly tested and addressed these concerns, ensuring that the deployment of Denune will not compromise the network’s security or stability.


The upcoming Denune upgrade is undoubtedly a game-changer for Ethereum. With improved scalability, better layer 2 functionality, and the introduction of critical EIPs, Denune has the potential to bring about a new era of growth and success for Ethereum. While there may be some concerns about its implementation, overall, the benefits far outweigh any potential challenges. The future looks bright for Ethereum and its entire ecosystem, and Denune is just one step towards achieving its ultimate goals. As investors and users, we can’t wait to see how this upgrade will transform the network and its capabilities.

The content provided on our site is for informational purposes only and not intended as financial advice. It aims to enhance understanding of the cryptocurrency market, but readers should always conduct their own research and consult with a financial professional before making an investment decision. 

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