Ethereum’s Buterin Highlights Layer-Two Rollups as Potential Scaling Solution

Ethereum’s Buterin Highlights Layer-Two Rollups as Potential Scaling Solution

Ethereum’s Buterin Highlights Layer-Two Rollups as Potential Scaling Solution

Ethereum founder Vitalik Buterin believes Layer 2 solutions can help the network grow 100-fold in a few months to meet growing demand.

Bypass of current network congestion

Ethereum has reached many milestones in the past 12 months and can be credited as the protocol responsible for popularizing the defi revolution with its smart-contracting capabilities. However, when at the same time the demand for network services increased, this created a new headache for users, as rising petrol prices made it much more expensive to enter into contracts.

These developments coincided with the current implementation of ETH2, effectively upgrading the original infrastructure to support better performance through improved scalability, efficiency and transaction throughput. However, recent activities have degraded network performance and sparked a debate on how best to address these issues.

In a recent interview with Naval Ravikant on The Tim Ferriss Show, Vitalik Buterin, the 27-year-old co-founder of Ethereum, explained that one of the answers to this congestion lies in Layer 2 scaling solutions that can be implemented in a matter of months. According to Buterin, roll-ups like the ZKS can play a key role in reducing network costs and improving productivity.

ETH2 Upgrade Sewing Plan Add-ons

Unlike a traditional Ethereum transaction where the network must confirm the transaction, sidechain layer 2 folding allows all transactions to be recorded and verified before folding into one. Then this single transaction must be approved by the main chain, in this case Ethereum.

Unlike previous delays in confirmation, Rolls can provide an immediate confirmation, bypassing the congestion that has plagued the Ethereum network for months. Buterin estimates that this Level 2 scalability solution can deliver 100x scalability in a matter of months. In combination with Level 1 scaling solutions, such as. B. Sharding, which are also configured for use in the network, increases this value to 1000 times.

Moreover, sidechains can address the high transaction costs that annoy users by providing accessibility already used by new defi apps looking to expand their presence.

Transition to decentralised level – 2

Decentralized exchanges (dex) and defi protocols like Uniswap have been the unfortunate victims of congestion in Ethereum due to their tier 1 design. To address this shortcoming, ZKSwap’s ZK Rollups, a Level 2 token exchange and automated market maker (AMM) protocol, has developed a side chain rollup to solve this problem.

This rollup can support Defy, but without the high gas costs that Defy participants sought. Buterin believes this rollup could be the solution to achieve the 100x scalability he mentions, and the solution has already shown demonstrable results.

According to a post by the 10 on Twitter. March through the Tier 2 Dex competition, ZKSwap is currently ranked first among these solutions and has recorded a 24-hour trading volume of over $66,000,000.

L2 DEX trading volume over last 24 hours :

1 @ZKSwapOfficial $70,717,033 (7% $ZKS)
2 @QuickswapDEX 32,014,977 (25% $QUICK)
3 @loopringorg $8,447,643 (63% $LRC)
4 @nashsocial
5 @deversifi $763,514
6 @Leverj_io $234,417
Powered by @coingecko API

– L2_Dex_Wars (@L2Wars) 10. March 2021

The total value of blocked (TVL) in dex (decentralized exchange) at the time of writing is over $813 million.

Do you think the Ethereum network will take advantage of the current surge to grow by 100% as Vitalik predicts? Let us know your comments in the section below.

Photo credit: Shutterstock, Pixabay, Wiki Commons, Fortune.com

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