Cancun upgrade opens the era of reduced fees. How to fully explore the Ethereum and L2 ecosystem through the OKX Web3 wallet?

Author: 0xming

On March 13, according to OKLink data, Ethereum officially activated the Dencun upgrade at block height 269568, entering the era of low fees for Layer 2. After reducing costs and increasing efficiency, can Ethereum make a comeback?

Ethereum was officially launched on July 30, 2015, ushering in a new era of smart contracts. It has thrived due to the prosperity of on-chain applications such as DeFi and NFT Summer, but has also faced challenges due to the low gas competition from high-performance public chains like Solana and the siphoning effect of the Bitcoin ecosystem. Although Ethereum has attempted to reverse the situation with version 2.0, the lengthy and complex process of technological iteration has left platform performance unsatisfactory in the short term, with high gas fees being one of the key reasons for user migration.

The immense pressure from Ethereum's congestion has directly driven the grand narrative of Layer 2. Vitalik Buterin began to support various scalability solutions. He profoundly wrote in an article, "Without Layer 2 and Rollup development, Ethereum will fail due to high transaction costs." How to solve the performance issues of "expensive and congested" has become the core theme of Ethereum's current development. According to OKLink data, the TVL of the Layer 2 ecosystem has shown a continuous upward trend, with the total TVL of the Layer 2 ecosystem reaching $38.31 billion.

Mainstream Layer 2 solutions like Arbitrum and Optimism share Ethereum's security. Although computation has moved off-chain, data is still processed by Ethereum nodes and permanently stored on-chain at a high cost, which ultimately transfers these expenses to users. Therefore, while Layer 2 alleviates Ethereum's transaction pressure and reduces gas fees to some extent, its effectiveness is limited compared to Web 2 users who are accustomed to free usage.

The success of the Cancun upgrade has officially opened the era of reduced fees for Layer 2, injecting new vitality into the Layer 2 ecosystem and Ethereum. On March 15, according to OKLink data, after the Cancun upgrade, transaction fees on Layer 2 networks like Starknet and OP plummeted by over 90%, with significant increases in active addresses and TPS. As a leading one-stop Web3 gateway, the OKX Web3 wallet now fully supports Ethereum and the Layer 2 ecosystem, providing an important foundation for users to better explore the on-chain world.

Data Source: OKLink

Understanding the Cancun Upgrade

The Dencun upgrade is a shorthand for the upgrades of Ethereum's execution client Cancun and consensus client Deneb. The community commonly refers to the Dencun upgrade as the Cancun upgrade, with the core purpose of optimizing the Ethereum staking experience for users while achieving cost reduction and efficiency improvement for Layer 2. The Cancun upgrade includes a total of 9 Ethereum Improvement Proposals (EIPs), including EIP-1153, EIP-4788, EIP-4844, EIP-5656, EIP-6780, EIP-7044, EIP-7045, EIP-7514, and EIP-7516, among which the most critical is EIP-4844, known as Proto-Danksharding.

The EIP-4844 proposal serves as the foundation for the full version of sharding expansion, Danksharding, introducing a new data storage structure called Blob to Ethereum, specifically for storing transaction data submitted from Layer 2 to Ethereum. This eliminates the need to compete for storage space in Calldata, making user transaction fees cheaper and the transaction experience more efficient.

Against the backdrop of Ethereum's prosperity and high gas fees being contradictory, the competition for limited block resources has led to inefficiency, congestion, and high costs, drawing criticism from the market. Previously, all transactions from Ethereum Layer 2 were stored in Ethereum's Calldata, but Calldata space is limited, and the stored data must be processed by Ethereum nodes and permanently stored on-chain. It is reported that 80% of Layer 2's transaction costs and gas fees come from Calldata data storage costs. The Blob significantly reduces Layer 2 data storage costs and achieves higher transaction throughput by creating additional temporary data storage space on Ethereum.

According to OKLink data, mainstream Layer 2 networks such as Arbitrum, Optimism, Starknet, and Base have integrated EIP-4844, with their network gas fees dropping by over 90%. More data can be viewed by clicking here.

Data Source: OKLink

However, it is worth noting that the data storage of Blob is temporary, with a usable time of 4,096 epochs, or about 18 days. Ethereum needs to ensure real-time data availability rather than data retrievability; the value and significance of permanently storing transaction data are not high. Regularly clearing Blob data can save storage space and overall help Ethereum maintain its core competitiveness, allowing it to sustain or even capture more market share in the public chain arena.

Nevertheless, some data discarded by the Blob still holds potential value for retrieval, such as preventing node malfeasance, protecting against rug pulls by public chain operators, and helping establish escape pod mechanisms or forced withdrawal mechanisms. To this end, OKLink will be responsible for securely storing all blob data, ensuring the safety and retrievability of historical data to support the healthy development of the Ethereum ecosystem and provide services to individuals and public chain teams that require Blob data at any time.

In addition, EIP-4844 will introduce a new fee market for Blob, which is more conducive to maintaining better pricing. The introduction of the Blob data storage structure will significantly reduce costs for Ethereum Layer 2, such as zkSync being the first Layer 2 to use Blob, with its sequencer costs reduced by about 88%, and Starknet's actual gas fees dropping to as low as $0.01, etc. However, the actual impact still depends on various factors of Layer 2 itself. Additionally, it will help speed up Layer 2 transactions by 10 times or even 100 times. Of course, besides EIP-4844, this upgrade also includes EIP-1153, EIP-6780, and others. In summary, the Cancun upgrade will encourage more trading activities and support the long-term development of Layer 2 and the Ethereum ecosystem.

How to Explore Ethereum and the Layer 2 Ecosystem through OKX Web3 Wallet?

After the Cancun upgrade, users can conduct on-chain transactions with very low gas fees. As a leading one-stop Web3 gateway, the OKX Web3 wallet now fully supports Ethereum and the Layer 2 ecosystem, providing an important foundation for users to better explore the on-chain world.

Currently, OKX Web3 offers comprehensive support for Ethereum and Ethereum Layer 2 ecosystems, having first integrated mainstream Layer 2 networks such as Blast, Optimism, Arbitrum, Starknet, zkSync Era, Manta Pacific, etc. Users do not need to manually configure anything and can switch to these networks with one click for managing corresponding tokens.

To enhance capital efficiency, users can interact with the OKX DeFi section and Ethereum restaking protocols. The concept of "restaking" was first proposed by Eigenlayer, allowing users to restake ETH that is staked on the Ethereum mainnet through Eigenlayer on other consensus protocols. This not only allows these protocols to share Ethereum's security but also enables users to earn additional rewards. The "restaking earning activity" launched by OKX Web3 DeFi has now integrated various types of restaking protocols, providing users with extra points or token rewards. Through "ETH restaking," "liquid staking," or "liquidity restaking," users can earn additional rewards. For example, participating in Kelp can earn an extra 30% in points, participating in Renzo can earn an extra 10% in points and up to 20% in interest rewards, etc. Click here to participate immediately.

Users can exchange Ethereum and Layer 2 assets and conduct cross-chain transactions through OKX DEX, enjoying the best on-chain liquidity, optimal prices, and zero transaction service fees, making it easy to trade any asset. Currently, OKX DEX supports multiple Ethereum Layer 2 networks, such as Avalanche C, Arbitrum, Optimism, zkSync Era, Polygon zkEVM, Linea, Base, Mantle, Starknet, Scroll, etc.

OKX DEX is a powerful DEX and cross-chain aggregator, now aggregating over 20 cross-chain networks, more than 20 public chains, and over 400 DEXs, while also featuring DEX market boards, limit orders, KYT security checks, and has introduced intent trading modes to help users enjoy a gas-free trading experience.

To help users lower the entry barrier to Web3 and reduce search costs while allowing for precise interactions during fragmented time, Cryptopedia has launched ecological interaction tasks for Layer 2 such as zkSync Era, aggregating and selecting high-quality DApps and setting interaction tasks to help users experience a smooth on-chain world while earning multiple rewards. For example, users can better explore the Layer 2 ecosystem and earn rewards by experiencing selected zkSync Era ecological DApps through OKX Cryptopedia. OKX Cryptopedia is a one-stop DApp exploration and reward interaction platform, which will regularly launch activities themed around different blockchain networks and set DApp interaction tasks in collaboration with relevant partners.

OKX Discover has taken the lead in launching Layer 2 ecosystem exploration, supporting the Ethereum Cancun upgrade in real-time, helping users quickly and safely participate in the Ethereum and Layer 2 ecosystem. Additionally, to explore the Ethereum and Layer 2 ecosystem more broadly and discover and interact with popular DApps, users can find and jump to popular DApps through the OKX Discover section, making it simpler and more convenient to explore the on-chain world. For instance, OKX Discover has added several hot zones such as restaking, Solana ecosystem, inscriptions, Bitcoin ecosystem, essential tools, and popular blockchain games, providing users with the latest and hottest on-chain dynamics.

Moreover, users can check Layer 2 network-related data anytime and anywhere through the OKX browser or the Dencun upgrade special page launched by OKLink, including the most intuitive data, such as the reduction in token prices and transaction fees; potential developments caused by changes in transaction fees and TPS; TVL, TVB, and the number of active addresses; as well as changes brought to Ethereum data by the upgrade, etc. Users can also view the complete development history of ETH, upgrade reviews, and more.

The OKX Web3 wallet supports Ethereum and Layer 2 ecosystems through various sections, helping users explore the on-chain world simply, safely, and efficiently, becoming an indispensable Web3 tool for users.

The Cancun Upgrade Injects Vitality into Ethereum and Layer 2

Ethereum has carved out a differentiated path from Bitcoin's peer-to-peer electronic cash system. As the world's largest open-source platform, Ethereum was the first to introduce smart contracts into the blockchain world, leading the development direction of the cryptocurrency industry and laying the foundation for a decentralized future. Ethereum has not only created a cryptocurrency but also a new type of financial infrastructure, providing people with a freer, safer, and more open trading environment, driving innovation and progress across the entire industry.

With the largest developer community among Layer 1s, Ethereum's legitimacy remains irreplaceable. Despite facing challenges due to its congested and expensive performance and fierce competition in the public chain arena, the innovations of Layer 2 and various scaling solutions like Rollup will undoubtedly bear the massive transaction pressure of the mainnet, buying time and space for the arrival of Ethereum 2.0.

Looking back at the iterative process, the OKX Web3 wallet, on one hand, supports the Ethereum and Layer 2 ecosystems, aiding the construction of the Ethereum community, while on the other hand, it brings massive liquidity to the Ethereum and Layer 2 ecosystems by connecting users, becoming an important builder of the Ethereum and Layer 2 ecosystems. The OKX Web3 wallet now fully supports Ethereum and Layer 2 ecosystems, leveraging solid technical accumulation and continuous innovation to provide the most advanced market tools, significantly lowering the participation threshold for users and helping them navigate the on-chain world seamlessly.

Although progress has been slow, Ethereum, this enormous creative machine, has never stopped. From borders, homes, and metropolises to tranquility, after several upgrades and numerous EIP proposals, each step brings it closer to the vision of becoming a scalable, decentralized, and globally accessible settlement layer. Furthermore, as market attention shifts from Bitcoin spot ETFs to Ethereum spot ETFs, it will bring more attention and vitality to Ethereum.