[Metis CEO: Dencun is a big step towards mass adoption]
Metis CEO Tom Ngo believes that Ethereum’s Dencun upgrade is a key step in promoting the large-scale adoption of blockchain, and will also be of great benefit to traditional financial companies entering the encryption space. In an interview with Cointelegraph, Ngo pointed out that transaction predictability is crucial for mass adoption, especially in the traditional financial industry where every penny of slippage in a transaction is extremely important.
The Dencun upgrade is a major update after Ethereum completed the Merge transition to the proof-of-stake consensus mechanism in September 2022. It was launched on the mainnet on March 13. The upgrade aims to reduce transaction fees on the Layer 2 blockchain network and improve the scalability of Ethereum, which is seen as a major solution for mainstream users facing barriers to entry due to high transaction costs.
The significant reduction in transaction fees after the Starknet upgrade, from $6 to $0.04, a 99% reduction, demonstrates the immediate benefits of the upgrade. Although the Dencun upgrade does not directly reduce the high gas fees of the Ethereum mainnet, it enhances the appeal of Layer 2 and is expected to attract more users and capital inflows.
Ngo further predicted that as users and projects become more familiar with Layer2 and more trustworthy platforms are built on Layer2, capital will continue to flow into Layer2, promoting the expansion of Ethereum. Currently, the total value locked in Layer 2 solutions has grown to $39.48 billion, up from $10.3 billion a year ago, according to L2beat.
Regarding the challenges faced by the mainstream adoption of decentralized finance (DeFi), Ngo believes that user experience and interoperability are two major issues that need to be urgently resolved.
