Upgrade Cancun: A turning point for Ethereum's Layer 2 and 5 potential investment opportunities

Source: BITWU.ETH, encryption KOL

$ETH  On the other hand, a lot of you are asking about the latest news from Ethereum Cancun:

1, what is the Cancun Upgrade and IP-4844 

2, the impact of Cancun Upgrade on L2  

3. Technical process of Cancun Upgrade  .

4, Cancun upgraded agitating pattern  

5. Except Etherum  5 outside investment opportunities.  

1. What is the Cancun Upgrade?

 Ethereum Cancun 是继上海之后对 ETH 区块链的额外升级，具有 EIP-4844 和可能的 EIP-6969 主要是推动以太坊 L2 得以实现成本降低、速度提高的目标： 届时，将使得以太坊 Layer2 的速度提高 10x，甚至有机会提高 100 倍且成本更低。

2、坎昆升级核心：

EIP-4844 什么是 EIP-4844？ 

This is the first step in the expansion of ETH L1 Pro-Danksharding, also known as EIP-4844. EIP-4844 introduces a new transaction type, Blob, which moves the transaction data to a new temporary "blob" store to provide cheap storage costs and does not need to be kept permanently.  

在这之前，L2 会定期将一些数据存储在 L1 主链上，这个步骤会消耗大量的费用，坎昆升级后，L2 交易将存储在 blob 中，Blob 类似以太坊 L1 的「外部存储空间」，存储成本更便宜，空间更大。 坎昆升级的核心就是降低了存储成本。

3、坎昆升级将刺激 

L2 生态的爆发 用户在 L2 Rollups 支付的交易成本中有 90% 以上是由于数据存储造成的,EIP-4844 完全实施后，L2 的交易费用将降低一个数量级，每笔 L2 交易的成本将便宜数十倍。

Therefore, the Cancun upgrade is no less significant than the Shanghai upgrade. The cost of L2 Rollups has been reduced, even to ~ ~ lt. $0.001, and this is only the impact of the first step of ETH expansion and upgrade.  

Since the launch of Op Rollups and Arb, their TVL and network activity have ranked top 4 and top 6 in the whole public chain. With the cost of Cancun upgrade reduced by orders of magnitude, it is hard to imagine L2's space and influence.  

With lower transaction fees, a better transaction experience, and even more applications, the Cancun upgrade will be a turning point for Ethereum L2.      

4. Summary of the current technical process and stages of Cancun Upgrade

  A total of 18 discussions in 2023 (as of 10/5/23)@KiwiCryptoBigThe tweets discussed the proposals and possible progress, and the following is a summary from@KiwiCryptoBig

1. Shanghai's upgrade has been delayed for a long time, and Cancun's current development workload is also heavy. It is estimated that it will be some time behind the roadmap.

2. The scope of the development should be clear in the next few weeks, various minor upgrades may have to make way for 4844, and we expect some eip to be squeezed out of the current discussion.

The blob probability brought by 3.4844 is available, benefiting various large, medium and small l2 and modular blockchains.    

5, Cancun upgrade and BTC half resonance, the second half of the pattern will be stirred.

Cancun upgrade does not give the specific time at present, probably in the second half of 23 years, and the next half of BTC is in May 9, 24, half expected often hype in advance, just with the second half of the Cancun upgrade time resonance, a new round of reshuffle may come.  

The effect on L1 chain:  

Op and Arb alone have gone crazy in the public chain market. Arb TVL is second only to Wave Field and BSC, Op is weaker than Arb, but it also ranks in the top 6, ahead of Avax, FTM, Sol, etc.

After the upgrade of Cancun in the second half of the year, the competitive advantage of ETH L2 will be improved by another order of magnitude. Non-eth chain will become more and more difficult, and most of them will be eliminated by the market.

L2 itself competition:  

  Arb and Op occupy a dominant position in the L2 market with their first-mover advantage, but the Cancun upgrade in the second half of the year is approaching, the whole Rollup track will usher in a general uptrend, and the dispute between L2 program and L2 program will become more and more intense, which does not exclude the emergence of new dark horses.

6. In addition to ETH  In itself, five investment opportunities worth laying out under the Cancun upgrade

  No.1: L2 faucet -- Arb, Op 

These two L2 are currently TVL and L2 with the largest number of users. They have sufficient first-mover advantage and legitimacy, and have a certain ecological moat, which is the core standard of Cancun upgrade.  

No.2: Leading applications -- GMX, RDNT, Magic, Velo, Snx 

GMX, RDNT and Magic are Arb series, Velo and Snx are op series, and they are respectively supported by corresponding L2. L2 outbreak will also drive the outbreak of their ecology.  

No.3: L2 Alternative -- Polygon

Polygon is a side chain with its own independent consensus and does not count as L2, but Polygon has several ZK Layer2 solutions, including Polygon ZKEVM. Polygon is equivalent to moving from the public chain market to embrace ETH L2, with strong technical strength and market driving force.  

No.4: zkRollup application project -- LRC, IMX 

At present, general zkRollup has not issued coins, LRC, IMX is ZK L2 relatively easy to hype plate.  

No.5: Optimism forked -- Boba, Metis 

Lack of legitimacy, but similar performance, weak ecology, good odds, is the end of the Cancun upgrade plate.    

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