Ethereum’s Vitalik Buterin urges power users to move to Layer 2 scaling

In light of the recent soaring transaction fees from Ethereum, its founder and chief scientist Vitalik Buterin urged users of the second largest blockchain to move to scaling solutions that “are already there for many application classes”.

Buterin took the opportunity to speak at the opening keynote of the virtual conference invest: ethereum economy from CoinDesk to confirm his enthusiasm for so-called Layer 2 scaling solutions such as “rollups”, which essentially means adding transaction data in the chain hold and at the same time increase the computing power to relieve the chain.

Given that Ethereum’s roadmap to scaling the base layer of its blockchain using a technique called sharding seems a few years away, Buterin said it was imperative that users support rollups.

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“If you’re listening to this and you’re an exchange or a wallet or a mining pool or a power user – even just a normal one – then you should be aware of what rollups are and what they do. “Said Buterin. “Basically what’s your strategy for moving on to them.”

The explosion in decentralized financial platforms (DeFi) running on Ethereum has skyrocketed transaction fees in recent months (transaction fees rose from 8 cents at the beginning of this year to highs of around $ 14 in September) . In the meantime, there is pressure from other competing base layer protocols like Polkadot, Cosmos, and Blockstack.

Buterin praised both “optimistic rollup solutions” and ZK rollups that use zero-knowledge-proof technology.

“As for us now, we are actually there for simple payments like you can roll up ETH transactions. The challenge is to get everyone to actually move, ”said Buterin. “Generic EVM” [Ethereum Virtual Machine] Application Smart Contracts are a little further back. “

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Buterin has not elaborated on when the switch from Ethereum to Proof-of-Stake (PoS) would actually take place, except that phase 0 with an independent beacon chain as a test site will take place “very soon”.

The operator of the Zinken test network recently said that after a test in mid-October, a beacon chain would start within about six weeks.

Turning to PoS, Buterin said that stakers could expect to be net profitable as long as they stay online at least 50-60% of the time. “Some of the other proof-of-stake chains that are coming out [are] saying if you’re offline for 12 hours you get sliced ​​open which I think is absolutely crazy, ”he said.

The more coins that are used, the more resources and complexity are to be expected, Buterin said. That’s because the 10,000 ETH staker will participate in many more parts of the chain than someone who only stakes out 32 ETH, for example.

“This is a natural consequence of how sharding works and a feature we really like,” he said. “ETH 2.0 strives to be as little-guy-friendly as possible.”

Buterin was also enthusiastic about Ethereum’s proposed fee market reform (EIP 1559), which will experiment with a flexible block size cap. That’ll make fees a little less volatile and block sizes a little more volatile, he said.

In addition, Buterin said, it is “very likely that the amount of ether burned through charges will exceed the amount of ether burned through charges,” Buterin told Staker edition, “at current usage levels.

Comparing Ethereum in this regard to Bitcoin’s reduced supply of mining rewards over time, Buterin added:

“If this is new in the last three months, the ETH offer will decrease after the proof-of-stake.”

“The running joke here is that if a fixed supply currency is solid money, a decreasing supply cryptocurrency is supersonic,” he said.

Read more: Opinion: Tokenized Staked ETH will replace ETH – and that’s a good thing

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