The much-awaited Dencun update on Ethereum is said to happen in the first quarter of the year. 

(Read more: 24+ Potential Crypto Airdrops to Watch Out For in 2024)

The Dencun Upgrade: A Brief Overview

While Dencun is expected to fix some of the major issues with the Ethereum network, one of the most anticipated benefits of this update is to significantly improve Ethereum’s scalability and efficiency that will reduce the fees on all the layer two protocols built on top of the network. 

This is a plus for Ethereum L2 users as transactions will be cost-effective, mostly because Ethereum L2s are known for being dapp developer-friendly through smart contracts and more use cases like NFTs, lending, staking, and even web3 games. 

Other highlights of the upgrade include: 

• The introduction of proto-danksharding, which will enhance the throughput and efficiency of L2s through data blobs, thus, improved data availability is expected. 
• The introduction of temporary data storage on smart contracts, which will allow immediate clearing of intermediate data after transaction completion, thus, reducing permanent storage overheads. 
• The restriction of the “SELF DESTRUCT” function for smart contracts, thus, improving a contract’s stability and predictability. 
• The activation of Beacon Chain’s block roots to be accessible to the EVM, which will allow smart contracts to directly access the network’s consensus state without needing external oracles, thus, reducing external dependence. 
• The joint cooperation of multiple EIPs to collectively contribute to optimizing the validator lifecycle and operations on Ethereum. 

With this, BitPinas has listed a list of Ethereum L2s that could soar alongside the Dencun update. 

Ethereum Layer 2s

Polygon 

Polygon (https://polygon.technology/), formerly known as the Matic Network, is known as the “Ethereum Boster” because it seeks to solve Ethereum’s scalability and poor user experience challenges by scaling the network. 

It provides a platform for building and connecting Ethereum-compatible networks and allows developers to build dApps that can benefit from faster and cheaper transactions than the Ethereum blockchain while still being able to benefit from the security and network effects of its mainnet. 

Read: Polygon (Formerly) MATIC Philippines Guide And Usecases

What to Watch Out For? 

Some of the Polygon developers are pushing to transition from $MATIC to $POL, which will function as the lone token within the Polygon ecosystem. 

Arbitrum

Arbitrum (https://arbitrum.io/) is another L2 solution that seeks to scale Ethereum.

It basically allows users to build and access web3 apps and deploy smart contracts in a cheaper and faster transaction. 

It recently introduced its flagship product, the Arbitrum Rollup, which is an Optimistic rollup protocol that inherits Ethereum-level security.

What to Watch Out For? 

Arbitrum One is the number one L2 by TVL and has the highest transaction value in the Ethereum ecosystem.

Optimism

Optimism (https://www.optimism.io/) is a blockchain that claims to be low-cost and lightning-fast. 

It has three features: the OP Mainnet, which is an EVM-equivalent Layer 2 blockchain connected to Ethereum; the OP Stack, which is the standardized, shared, and open-source development stack that makes it easy to spin up production-ready Layer 2 blockchain just like OP Mainnet; and the Superchain, which is a network of OP Stack chains that share a bridging protocol, governance system, and more.

What to Watch Out For? 

The OP Mainnet is the second L2 2in terms of TVL among the Ethereum ecosystem. 

COTI

COTI (https://coti.io/) is a Privacy Centric L2 on Ethereum, which claims to be built with a groundbreaking privacy technology that is fast, secure, and can run on any device.

It eyes to solve Ethereum’s data sensitivity issue by enabling end-to-end encryption across web3 applications.

What to Watch Out For? 

COTI’s privacy preservation solution is the first-ever solution to exist in the industry.

Mantle

Mantle Network (https://www.mantle.xyz/) is a technology stack for scaling Ethereum that is EVM-compatible, which means all the contracts and tools that work on Ethereum also work on Mantle Network with minimal modifications. 

It has two audiences: users that can experiment with web3 apps and developers that can deploy smart contracts in an efficient, low-fee environment.

What to Watch Out For? 

Mantle is the third largest liquidity staking derivatives protocol in terms of volumes staked. 

Metis

Metis (https://www.metis.io/) is an Ethereum L2 Rollup platform that claims to offer simple and fast smart contract deployment within the network. 

“Metis offers an exclusive list of products to blockchain project developers, app developers, and everyone who is interested in obtaining modern solutions for Ethereum challenges.Select a product to start with Ethereum Layer 2 and access an extended range of opportunities,” the team advertised. 

What to Watch Out For? 

Its centralized sequencer alpha mainnet launch is set to happen in March.

This article is published on BitPinas: Ethereum Dencun Upgrade: Tokens To Watch Out For

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