Ethereum’s Dencun upgrade, implemented on Wednesday, has delivered promising results by significantly reducing transactionTransaction Exchange of value, property, or data between two parties. costs associated with layer 2 solutions. The upgrade introduced Binary Large Objects (blobs), which allow for the attachment of large data chunks to regular transactionsTransaction Exchange of value, property, or data between two parties., stored off-chain and inaccessible after three weeks. This mechanism enables layer 2 rollups like Optimism, Arbitrum, and zkSync to process transactions more efficiently and cost-effectively. According to blockchain analyst Marcov’s Dune-based tracker, average transaction costs on scaling solutions like Optimism and Coinbase’s layer 2 solution Base have dropped substantially. The consensus among experts is that the blob mechanism could lead to a 90% reduction in transaction costs on layer 2 solutions. Despite these positive developments, the Dencun upgrade has not yet sparked increased investor interest in the native tokens of rollups, which are expected to benefit from the lower transaction costs facilitated by blobs. (Source: CoinDesk)