Source: https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A6961375836197306368
#Scaling Ethereum: The Role of Rollups #DeFi #Crypto #Ethereum: The growth of #DecentralizedFinance and more recently NFTs exposed Ethereum’s lack of scaling solutions for all to see. During the Bored Ape Yacht Club land sale only a few months ago, buyers paid over $10,000 in #transaction #fees per #NFT, which surpassed the $6,000 or so price tag of the NFT itself. These transaction costs rear their ugly head every time the Ethereum network becomes congested — think times of extreme volatility like the Terra collapse or the Celsius crisis recently. Whatever your thoughts on Ether as an investment, the fact that the #cost of using the #network can exceed the price of the item being bought is a clear sign that the #Ethereum #blockchain isn’t fit for purpose in its current state. This Deep Dive will take a look at the data behind #Layer2 #rollups, Ethereum’s quickest solution for scaling the network in the short term.
There are two main ways to scale Ethereum:
Improve the #transaction #capacity of the blockchain itself. The most effective way to upgrade the blockchain but also the most complicated. #Sharding and other upgrades may not be seen for another year or more.
Move to Layer 2. Instead of doing all the computational work on #Layer1 (Ethereum blockchain), a solution is to move the bulk of the work to #Layer2 — an off-chain network that reduces the computational strain on the Ethereum mainchain. The Layer 2 protocols responsible for achieving this scalability solution are called #rollups. Layer 2 rollups are the fastest way to help Ethereum scale in the short term.
IN-DEPTH
#Ethereum #Blockchain: https://lnkd.in/gCeM7279
#Ethereum #Scaling: https://lnkd.in/gV-kkFDa
#Ethereum #NFT: https://lnkd.in/gVkrrUUR
#Ethereum #Transaction #Fee: https://lnkd.in/gPtWcKvc
#Ethereum #Layer1 https://lnkd.in/ggcFKRGZ
#Ethereum #Layer2
https://lnkd.in/giKUazUF
#Ethereum #Layer2 #Rollup
https://lnkd.in/gYEF9h6X
Future of AI-Computer Science-Data Science-Finance Are All Here: Global Risk Management Network, LLC
