Ethereum has successfully completed a major software upgrade that should make using the blockchain network ecosystem cheaper. The update enables transactions that previously cost $1 on linked Layer 2 networks such as Arbitrum, Polygon, and Coinbase’s Base to be executed for just a cent.

The Dencun upgrade, a combination of the “Deneb” and “Cancun” portions of the update, introduces a new data storage system for Ethereum. Currently, most Layer 2 blockchains store data on Ethereum, and because this data is stored permanently on every Ethereum node, storage costs often account for around 90% of Layer 2 expenses. These costs are typically passed on to applications, which in turn charge consumers. With Dencun, Layer 2s can now store data in a new type of repository called blobs, which will be cheaper as the data will only be stored for approximately 18 days.

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