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LAYER-2 SCALING SOLUTION ON ETHEREUM WILL BE CENTER OF ATTRACTION IN THE COMING MONTHS

LAYER-2 SCALING SOLUTION ON ETHEREUM WILL BE CENTER OF ATTRACTION IN THE COMING MONTHS

The incomprehensible Redditor made a data-driven prediction that the next major phase of development in the blockchain space would be in layer-2 solutions, particularly for Ethereum.


The May 22 post describes "We are in a state of transition" as the industry moves from a bridge between L1 blockchains to L2 "outside the gate, highly secured and separated above alt-L1 and built for use. Sound money in a neutral environment:"


“L2 detection is happening now, even if it is slow and explosive. Behind the scenes, L2s improve reliability, reduce costs, and increase accessibility. L2s are building and developing, and that’s great. "

The L2 rating solution uses L1 chain security like Ethereum and reduces traffic to it by "wrapping" the transaction amount in one package to be resolved simultaneously.


Other L1 chains like Solana, which boast of cheap and fast transactions, have received support from high-end users.


The average Solana (SOL) transaction costs approximately $ 0.0025, while the Ether (ETH) transaction costs approximately $ 1.30 at the time of writing. Despite the unusual differences, Ethereum's blockchain demand remains high as its total $ 73.89 billion (TVL) total exceeds $ 4.24 billion by Solana, according to blockchain tracker DefiLlama. In addition, Solana has been plagued by loyalty issues recently.


As of the time of writing, Arbitrum is the largest L2 in Ethereum with $ 2.65 billion in TVL, according to L2beat. The entire Ethereum L2 ecosystem has a $ 4.77 billion TVL. These numbers may be set to explode if positive forces conspire to lure users and money away from other L1s.


A few major suspended applications (DApps) are already in use on L2s. Decentralized exchange (DEX) SushiSwap and crop yield curve is on Arbitrum. At the moment, the crypto derivatives protocol Synthetix and DEX Uniswap are in Optimism.


Airdrop of incoming Optimism may signal the beginning of a rapid flow of users to L2s. This may be due to the effects of the same network that attracted users to Ethereum and Ethereum Virtual Machine (EVM) -based decentralized finance (DeFi) protocols over the past two years.


Optimism is a $ 474 million L2 on TVL. EVM chains are those that comply with Ethereum token standards such as Binance Chain (BNB), Polygon (MATIC) and Fantom (FTM).


Finally, if there is an increase in L2 service, Ethereum L1 will have a natural growth in use, which could strengthen Ethereum as the world's leading smart contract and application platform.

Source: cointelegraphy




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