Ethereum: Problem still unsolved despite> 90% fee reduction rollups
The Ethereum ecosystem is never short of breaking news. Whether it’s a new collection of NFTs or sky-high gas charges, the second largest blockchain is always in the spotlight. However, during non-stop operations, it is easy to overlook Ethereum Layer 2 solutions such as the Smart Contract Rollup Chain.
Solve problems on Ethereum
Rollup is a Layer 2 solution that was developed with the aim of reducing the congestion on the Ethereum mainnet by processing external transactions. One report Arcane Research recently analyzed the difference this solution is making to the blockchain ecosystem.
In particular, rollups like Arbitrum One and Optimism reduce fees by 90% or more. For example, if transferring ETH costs $ 18.11 and a token swap requires $ 90.55, Optimism charges less than $ 0.01 for both operations.
However, the solutions come at the expense of speed.
“Both StarkNet and zKsync are planning to introduce EVM-compatible zK rollups soon. Compared to the removal of each asset in the optimistic rollup, which took more than a week, zK rollups were completed in about 10 minutes. “
At the Wanxiang Blockchain Summit, Vitalik Buterin spoke about how participants can pay in and pay out to roll-up networks that have already been launched. Additionally, he claims that one rollup allows for 10x expansion.
The source: Arcane research
Not entirely smooth
Despite these statistics, it is necessary to take a closer look at Arbitrum. The Total Value Locked (TVL) of Layer 2 solutions has exceeded $ 2 billion, but this is not the only indicator to consider. As previously reported, Arbitrum was unable to maintain its bullish momentum. While the growth rate reached 192.578% in September, it was 134% in October and in the single digits in the first week of November.
Put simply, Ethereum’s scaling challenge has yet to be fully resolved.
“Many roll-up projects are still in the initial phase and do not yet have tokens.”
What about bows?
The open protocol platform Loopring becomes a topic of conversation. A main reason is rumors that the protocol could work with GameStop to kickstart the NFT market.
Accordingly, Loopring’s TVL (with zk rollups) rose and almost hit the $ 600 million mark. Just a week ago, the protocol’s TVL hit an ATH of $ 459 million.
The source: l2beat.com
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