Cryptocurrencies

Ethereum Network Finishes Cost-Cutting ‘Dencun’ Software Upgrade

  • Software upgrade reduces costs for so-called Layer 2 chains
  • Upgrade expected to spur on development of new apps and chains

A customer buys Ethereum at a cryptocurrency ATM in Bratislava, Slovakia.

Photographer: Michaela Nagyidaiova/Bloomberg
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Ethereum has successfully completed a major software upgrade that should make using the blockchain network ecosystem cheaper.

Referred by developers as Dencun, the update lowers 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 used to cost $1 can now be done for a cent, while a transaction that used to cost a few cents will now cost a fraction of a cent.