Tenderly Co-founder Considers Ethereum Requires Multi-chain Solutions Besides Dencun Upgrade to Scale

Tenderly co-founder Nebojsa Urosevic observes that Ethereum confronts network capacity challenges in its quest for scaling. The platform’s research and development vice president supporting Web3 developers indicates that though the Dencun upgrade has the potential to assist, Ethereum requires a broader solution for successful scaling. 

Urosevic proposes that resolving the network capacity issue would necessitate implementing multi-chain solutions, namely rollups and appchains. The former blockchain engineer at Decenter admits that Ethereum has its fair share of limitations. 

The software engineer indicates that it was apparent from the start that the underlying technology for Ethereum was inadequate to handle vast transaction volume. The increasing load of use cases and their essence to various sectors implement innovative solutions imperative to scale the Ethereum network. 

Urosevic reflected on the Dencun upgrade slated for March 13 as a progressive move though a short-term patch that does not avert the need to generate sustainable and long-term solutions for the network. 

Striking a security-scalability balance without hampering decentralization is critical for any network, resulting in blockchain trilemma. Nonetheless, multi-chain solutions prioritize interoperability and security, thus harbouring the potential to optimize Ethereum’s potential. 

Dencun Upgrade Offers Temporary Solution

The Dencun upgrade is profiled to enhance the scalability as its implementation is ongoing across testnets. The developers announced its implementation on Holesky and Sepolia was smooth despite the bug causing delay on the Goerli testnet. 

Dencun brings a proto-dank sharding concept that developers designed to lower transaction costs using the blob format rather than the call data. 

Data blobs avail the transaction data in compressed format, thus becoming more cost-effective. In particular, the format lowers the cost by 80-90%, unlike Calldata. Rollups will become cost-efficient. 

Urosevic observes that the blob format is scheduled during the full sharding upgrade. The blockchain expert considers that the Dencun upgrade will yield improved storage efficiency, lower gas fees, and enhanced developer experience. 

Urosevic laments that the Dencun upgrade lacks permanency though a progressive step. It prioritizes realizing data storage efficiency. The University of Belgrade graduate in computer science considers that the Ethereum network faces a capacity challenge. 

Multichain Solutions and Appchains to Bolster Ethereum Capacity

The Cointelegraph publication on Monday, February 26, details Urosevic’s suggestion that implementing multi-chain solutions is the ideal solution to Ethereum capacity challenges. The software engineer considers application-specific blockchains (Appchains) to offer dedicated processing power using a single application. 

Urosevic considers that appchains are feasible when built on the larger mainnet and layer-2 chains. They offload the transactions from the mainnet and process them within the appchain, thus dramatically increasing the network’s capacity. 

Urosevic suggests that rollup technology could help in building the appchains. It deploys a unique mechanism by processing transactions off-chain, later rolled up and fed onto the mainnet as a single transaction. 

Urosevic admits that rollups are less efficient than appchains as they depend on the mainnet for their security. Besides, unlike the flexibility realized when deploying and managing appchains, they offer less customizable options.

Urosevic demonstrates that integrating rollup transaction efficiency and appchain flexible customization yields a synergistic effect. The developers leverage expansion beyond the layer-1 networks to realize a versatile and scalable environment. 

The exclusive Cointelegraph publication shows that scalable and versatile context supports designing and deploying blockchain-based applications that satisfy the user base demands without compromising efficiency and security levels. 

The resulting capacity increases while reducing latency. The multi-chain solutions will yield enhanced resource management to accommodate vast transaction volumes. 

Navigating the Challenges

The implementation of multi-chain solutions mandates the developers to navigate the exercise carefully. The greatest obstacle lies in overcoming the complexity of managing interoperability among the various chains. 

It compels a detailed understanding of the cross-chain communication protocols to design the integration techniques. The developers should ensure consistency in security measures across the chains.

Urosevic illustrates that implementing the Dencun upgrade constitutes a band-aid solution. The solution lies in fostering the network capacity. While Ethereum has an exciting future across various sectors, its achievement necessitates multi-chain solutions to deliver an accessible yet developer-friendly environment and efficient capacity.