Ethereum founder Vitalik Buterin offered a solution to the scalability and high transaction fee problems in layer-2 chains.
Buterin’s proposed updates could be implemented in the Shanghai hard fork.
Ethereum’s developer roadmap continues to be constantly renewed. With the new update, ETH founder Vitalik Buterin proposed to solve the problems of layer-2 scaling solutions prior to Sharding.
Layer-2 chains, also called rollups, are known for having all the security, decentralization and liquidity capabilities of the Ethereum network.
Rollups such as Optimism, Arbitrum and Startnet, which are early layer-2 solutions, expect to be optimized in 2022.
If Vitalik Buterin’s proposal for Ethereum is implemented, there will be a decrease in transaction fees
Along with Buterin’s proposal for changes to the Ethereum network, a new transaction format will be created to handle transactions carrying large amounts of data.
Thanks to the update, transaction fees can be reduced by more than 5 times by the end of 2022.
Some proposals to add “blob-carrying transactions” in a near-future hard fork, bringing higher scalability to rollups before full sharding is complete. https://t.co/oRTSwAC1oD
— vitalik.eth (@VitalikButerin) February 5, 2022
However, Ethereum layer-1 transactions can remain expensive. Layer-2 solutions are basically divided into two as “Optimistic” and “Zero-Knowledge”.
Thanks to Zero-Knowledge solutions cryptocurrency Its users use layer-2 networks instead of transacting directly on the Ethereum network. This means that transactions made with ETH are completed with a lower transaction fee.
In addition, layer-2 solutions are capable of processing faster than the ETH network. When the ETH network is slow due to high demand, such layer-2 solutions allow users to perform their transactions on the ETH Blockchain.