What benefits will the Cancun upgrade on March 13 bring to the cryptocurrency community?

The long-awaited Cancun upgrade is finally here, and you no longer have to worry about expensive gas fees!

Seeing that fans still don’t understand the benefits of the Cancun upgrade, today we are dedicated to popularizing science Let’s take a look

1. Ethereum’s network evolution journey

Ethereum has experienced several major network upgrades in recent years, including the famous London upgrade, Shanghai upgrade, and the upcoming one this week Kun upgrades. Among these upgrades, the Kun upgrade is expected to bring the most significant improvement in user experience, especially in terms of transaction fees.

2. The challenge of high handling fees

In the past, the high handling fees of the Ethereum network became a major burden for users. The fee for exchanging tokens is up to $57 equivalent in ETH, while buying and selling NFTs can cost up to $97. These expensive fees stem from the limitations of the Ethereum network, which can only handle 13 transactions per second. In order to obtain transaction priority, users have to pay higher handling fees, which has led to Ethereum being vividly called the "aristocratic chain."

3.The rise of L2 solutions

However , with the development of second-layer solutions (Layer2, L2) such as Optimism (OP), Arbitrum or Base, the cost of using the Ethereum network has dropped significantly. By using these L2 solutions for transfers, the handling fee can be reduced to $0.2 to US$1, which is more than 50 times cheaper than the cost of the native Ethereum network (Layer1, L1).

4. Cancun Upgrade: Moving towards low fees

This Zhou’s eye-catching Kun upgrade is expected to further reduce handling fees on the basis of L2, and the drop is expected to be between 10 and 100 times. This means that the handling fees for using Ethereum L2 will become extremely low, and Compared with other blockchain platforms such as Polygon and Solana, it is almost negligible.

The Kun upgrade marks an important step for Ethereum in solving the problem of high handling fees and is expected to greatly improve the user experience. Promote broader network usage and application development.

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