Hello Indodax members!
How are you? I hope you are fine. Well, today, I want to talk about Ethereum 2.0.
The increasing number of applications and users on Ethereum increases the load on the network while, so far, the capacity of the Ethereum network is still limited. Therefore, the cost of using it increases markedly with more and more users competing with each other to add transactions to the Ethereum network.
So, guys, the solutions offered by the developers are out. Ethereum 2.0, commonly known as Eth2 or “Serenity”, is an upgrade/update of Ethereum that aims to increase the speed, efficiency, and scalability of the Ethereum network itself so that Ethereum can process more transactions reduce congestion.
One of the main reasons for this upgrade is scalability. With more and more crypto-literate people also transacting on Ethereum, this scalability is the most important reason. Why? Because the scalability that can be achieved by Ethereum 1.0 can only support about 30 transactions per second and causes a “delay”. In comparison, Ethereum 2.0 promises to be able to transact up to 100,000 transactions per second. The developers of Ethereum themselves introduced the concept of “sharding”, namely the existence of 64 new chains on the Ethereum network to be more secure and sustainable. With the Ethereum 2.0 upgrade, this network can be almost 100% energy efficient.
In addition to the impact of Ethereum 2.0, which promises to be able to process 100,000 transactions per second, other implications of this upgrade can also create a much more sustainable network without mining. They can introduce smart contracts even more widely.
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Ethereum Layer 2 solutions give a lot about them by name. Layer 2 is a distinct network that runs on top of the leading Ethereum network or layer 1. Ethereum layer 2 solutions remain on the Ethereum network in the form of Smart Contracts. This layer does not require any modifications in the base level protocol to interact with the main network. Ethereum layer 2 scaling solutions can serve different functions such as off-chain computing and payment scalability.
The various Ethereum layer two solutions introduced here have great potential for the blockchain landscape positively. Layer 2 solutions are the next big thing in ensuring the utilization of blockchain network resources. On the other hand, it is also important to note that many Ethereum layer two solutions are in the development or testing stages. So, it may be some time before we see a complete layer 2 solutions dominate the Ethereum landscape.
Well, after reading the article above, what do you think about Ethereum layer 2? Let’s write the answer in the comments column below.
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