Ethereum co-founder Vitalik Buterin recently announced that the highly anticipated Proto-danksharding upgrade has officially entered the testing phase. This significant technological breakthrough is expected to greatly enhance the performance and scalability of the Ethereum network, opening up new possibilities for blockchain applications.

The core goal of the Proto-danksharding upgrade is to increase Ethereum's transaction processing capacity from the current 15 transactions per second to an astonishing 3000 transactions per second. This 200-fold performance leap is expected to completely change the application prospects of blockchain technology.

Unlike traditional sharding technology, Proto-danksharding adopts an innovative approach to achieve network scalability. It utilizes advanced cryptographic techniques such as data availability sampling and KZG commitments to significantly enhance data processing capabilities while maintaining network consistency and security. This method introduces a new transaction type — blob transactions, which can carry large amounts of data without increasing the burden on the Ethereum virtual machine.

It is worth noting that this upgrade coincides with the booming development of the decentralized finance (DeFi) ecosystem. The total locked value (TVL) of DeFi protocols has surpassed a historical high of 80 billion USD, providing a strong demand foundation for the implementation of Proto-danksharding. Data shows that for every additional 1 billion USD in TVL, approximately 23,000 ETH is needed as collateral, to pay gas fees, and to provide liquidity, which exceeds the daily output of Ethereum.

This change in the supply and demand relationship is driving ETH from a mere digital currency towards a productive asset. With the advancement of Proto-danksharding, the Ethereum network is expected to usher in a new wave of innovation, providing a more solid infrastructure support for the development of decentralized applications.