The Cancun upgrade is a topic that has once again aroused the popularity of the currency circle recently. Everyone is talking about it, and various big Vs are also writing various professional articles telling everyone about the specific content and implementation plan of the Cancun upgrade. But for many people in the currency circle, they are basically confused after reading those fancy articles, and even feel like they don’t understand what they are saying after reading them.
Today, Uncle Cat will talk about Cancun upgrade in the most understandable terms.
What is Cancun Upgrade? What is Cancun?
Simply put, the Cancun upgrade is a core step in the expansion and upgrade of the Ethereum ecosystem. This upgrade has occurred several times in the history of the Ethereum ecosystem, and each time it has brought more benign changes to the Ethereum ecosystem.
BRC-20 has become popular recently. It is a derivative extension protocol of the Bitcoin chain. It took a short time for it to become popular, and it also attracted a lot of attention and funds from the market. Everyone’s enthusiasm for it comes from the bright prospects for the expansion of Bitcoin. But when it comes to the ecological king of the entire currency circle, let’s look at the Ethereum chain.
In layman’s terms, Ethereum is like a top technological product in the currency circle. Whether it is decentralization or blockchain technology, its ecological development and derivative speed are at the forefront of the encryption market. There are also a large number of technical personnel who are constantly developing and researching Ethereum's blockchain technology. These technologies are the evolution of the Ethereum ecosystem. In fact, we don’t understand the specific content of the evolution. After all, they are all blockchain technologies, which are difficult for ordinary people to access, but we can simply understand them as constantly improving their block transfer speed. , increase the speed of currency withdrawal and transfer, reduce fees, improve the system, reduce loopholes, and become more decentralized. Of course, if you don’t even know what decentralization is, I suggest you read my previous articles.
What is Cancun?
A place name, a seaside tourist resort city in Mexico, is a world-famous holiday destination.
What does this Ethereum upgrade have to do with Cancun? Why is it called "Cancun" upgrade?
It’s very simple. Every Ethereum upgrade will be named after the place where the Ethereum Creator Development Conference is held. There was Shanghai before, and this time it is Cancun.
What are the specific contents of the Cancun upgrade?
The Cancun upgrade, which is expected to be carried out at the end of this year, will activate the EIP-4844 proposal, which will greatly enhance Ethereum’s expansion capabilities and TPS. Everyone knows about capacity expansion. What is TPS? I don’t know either. I can look up the meaning of such professional knowledge terms, but it’s really not necessary, because for me as a currency circle person, whether I know it or not doesn’t change anything.
The Cancun upgrade plan mainly introduces the following improvements:
● Improve the off-chain data storage and retrieval capabilities of Ethereum nodes and reduce the cost of the L2 Rollup solution
● Enable sharding to increase TPS and reduce gas fees
● Activate multiple EIPs that optimize Ethereum governance and security
Let’s look at the key points. Several keywords in the upgrade plan are simple and easy to understand: storage capacity, retrieval ability, reducing gas fees, and improving the governance and security of Ethereum. These are the key points that ordinary people can easily understand.
Regardless of the complicated and professional terminology, as a currency circle person, what are the benefits of this upgrade?
Here are 5 points to note:
Promote the vigorous development of L2 ecology
The Cancun upgrade will ignite the development of the L2 ecosystem by reducing L2 rollup costs and improving performance. Massive L2 DEX, DeFi products and NFT markets will emerge. Generally speaking, after the Cancun upgrade, more projects will emerge in the Ethereum ecosystem, and there will be more sickles.
Large-scale activation of cross-chain projects
Efficient L1 and L2 channels will power cross-chain solutions. Projects like LayerZero will usher in more use cases.
Stimulating decentralized storage applications
Blob storage reduces the availability of historical data and will promote the development of decentralized storage protocols.
Empower L1 storage expansion network
Infrastructure that can efficiently store large amounts of data is being built.
Further enhance the competitiveness of Ethereum
Low cost and high efficiency make the Ethereum ecosystem more valuable and dynamic.
To sum up the above points, it is faster, cheaper, more efficient, and safer. To put it simply, Ethereum will be even more awesome in the future.
Let’s talk about the core focus that we as currency circle people are concerned about, which tracks will be benefited by the Cancun upgrade:
The most direct benefit of the Cancun upgrade is the Ethereum L2 track, and OP ZK is representative.
The OP ecosystem will be more diverse, and the ZK ecosystem will be more usable due to enhanced data availability.
On-chain futures DXE: GMX GNS, etc.,
Decentralized options DXE
DeFi application representative of Ethereum L2, leading derivative: Dydx
Convenient exchange of NFT asset projects on Ethereum: IMX
Cross-chain track: layerzero
