The Dencun update to the Ethereum network is the basis for global blockchain adoption that could benefit TradFi companies in the crypto space. This was stated by Metis CEO Tom Ngo in an interview with Cointelegraph.
“This is a big step towards mass adoption by companies of more predictable transactions in their accounts. Even for TradFi, all this slippage matters within their trades and asset management […]. Overall, this is one of the biggest updates for L2, as it reduces gas fees,” he noted.
On March 13, blockchain developers activated the Dencun (Deneb-Cancun) hard fork on the main network. One of the main components of the update is EIP-4844. It includes the Proto-Danksharding option, designed for network scaling.
https://forklog.com/news/obnovlenie-dencun-v-razy-snizilo-komissii-v-l2-setyahAccording to Ngo, the high transaction costs associated with Ethereum are one of the biggest problems of adoption of the network by users for whom even a few cents matter.
“Ordinary users are accustomed to free messaging and the Internet. I think blockchain will do the same and continue to lower the barrier to entry. This will allow organizations and companies to take responsibility for fluctuations in gas quotations and prices,” says Metis CEO.
Despite reducing transaction fees on L2 networks, Dencun has not solved the problem of high costs on the main network. This may be one reason why second-tier solutions are attracting more users and capital, Ngo noted.
According to L2Beat, the total value of assets locked in L2 protocols has reached $39.6 billion. The figure is almost four times more than $10.3 billion a year ago.
The volume of blocked funds in L2 networks. Data: L2Beat.When asked about mass adoption of DeFi, Ngo emphasized that user experience and interoperability are the two most pressing issues.
Recall that, according to Grayscale experts, the launch of Dencun will help Ethereum “grow up” by increasing the scalability of the network.
Glassnode noted that the update affected the monetary policy of the blockchain due to the new architecture of second-level solutions and changes in the staking pool.