Gnosis Chain, formerly known as xDai Chain, is at the forefront with its recent Dencun hard fork. This update, activated around 2:30 pm ET, marks a significant step forward for the network while maintaining full compatibility with Ethereum.

The sophisticated design of Gnosis Chain, which incorporates a “Beacon” chain and an Ethereum-like execution layer, allows for the direct implementation of all hard forks planned for Ethereum, a fact that does not go unnoticed by industry enthusiasts and developers.

According to Phillippe Schommers, infrastructure director at Gnosis, the network aspires to be a kind of laboratory to test innovations in the real world. “We really want to stay exactly like Ethereum, so that an application built for Ethereum can seamlessly land on the Gnosis Chain,” Schommers stated in an interview, highlighting Gnosis’ intention to serve as a bridge to new possibilities within the Ethereum ecosystem.

The essence of the Dencun hard fork is scaling Ethereum through layer 2 networks by introducing a new data storage channel known as blobs. This innovation promises to significantly lower transaction costs for Ethereum rollups, which rely on Ethereum for data availability. After activating the fork, Ethereum’s main developers reported that no errors were found on the Gnosis Chain, which now operates with the new blob functionality, a milestone celebrated in the community.

Martin Koeppelmann, co-founder of Gnosis, shared during the live stream that while transaction fees on rollups may not reach sub-cents immediately, Gnosis Chain represents an important “horizontal scale” for the ecosystem. With this update, technologies that support the launch of rollups on Ethereum can be immediately applied to the Gnosis Chain.

Even at tier 1, gas costs on Gnosis, paid in xDAI — a derivative of the DAI stablecoin — are well below $0.01. One of the first layer 2 implementations on Gnosis Chain will be for Gnosis Pay, a payments network currently in development, which aims to migrate to layer 2 to meet data protection regulations among others.

As the infrastructure develops, the goal is to provide abundant block space, shifting the focus to developing applications that appeal to non-technical users. Schommers highlights the importance of simplifying the transition of Ethereum users to layer 2 solutions or other chains, emphasizing the need to improve the user experience in applications.


The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.


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