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 transition 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.
The shift could promote the use of artificial intelligence in games, where non-player characters will now be able to exhibit sophisticated behavior driven by an AI model — something that would have been prohibitively expensive before, Felten said. In decentralized finance, where users can trade and borrow directly from one another, automated market makers may also start embedding complex, AI-driven trading strategies.
The upgrade could also spur the launch of more Layer 2 chains, which can now be operated much more cheaply. Whereas a Layer 2 project previously needed to garner millions of dollars in venture-capital backing to launch and operate, it may now be able to accomplish the same feat with a skeletal crew. It may be cost-effective to launch new Layer 2 chains for a single vote, for a single day, said Jim McDonald, co-founder of Attestant, which helps operate the Ethereum network. A chain could be created for purposes such as to issue tickets for a single event.
