A popular crypto analyst, Ethereum (ETH) He stated that layer-2 projects built on it will dominate the crypto payments space in 2023. The analyst, known by the alias of Guy, is showing up for payments in a video he posted on his channel Coin Bureau. cryptocurrency He gave the signals that using it will become more common this year.
My prediction for 2023 is that crypto payments will become more common. This will again be due to better user interfaces, regulatory clarity that increases liquidity, and most importantly, the increase in scalability that finally makes crypto payments viable.
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Guy stated that layer-2s will play an important role in the increasing prevalence of crypto payments. Tier-2 solutionsare crypto projects designed to increase the number of transactions per second (TPS) a smart contract platform can process.
“This prediction was made after Vitalik Buterin, the founder of Ethereum, explained how layer-2s in Ethereum will power crypto payments. This makes sense considering that Ethereum is the most secure base layer to have for a payment system alongside Bitcoin.”
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It is possible to say that the rise of layer-2 dominance in crypto payments is more likely with an upgrade to the smart contract platform Ethereum. The planned EIP 4844 (Ethereum improvement proposal) aims to improve the scalability of the blockchain using “shard blob transactions”.
“Furthermore, the developers will implement the Ethereum improvement proposal, or EIP-4844, next summer. For those who don’t know, EIP 4844 will increase the scalability of Layer-2s on Ethereum by 10x to 100x. Given that most Tier-2s are already processing thousands of TPS, such an increase would put them on par with Visa.”
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