Technology
Ethereum Software Upgrade Is All About Cost Cutting This Time
- Transaction fees should decline for ‘Layer-2’ networks
- Change may spur development of new blockchains, applications
This article is for subscribers only.
Using the world’s most commercially successful blockchain ecosystem is about to get much cheaper after the latest software upgrade of the Ethereum network.
Referred by developers as Dencun, the update slated for March 13 is expected to dramatically lower expenses for so-called Layer 2 networks — dozens of chains like Arbitrum, Polygon and Coinbase Global Inc.’s Base that link to Ethereum. A transaction that might have previously cost $1 to post may now cost one cent; another that used to cost cents would now be a fraction of a cent.