$1 billion is being locked in the Ethereum layer2 scaling solution

According to data tracker L2Beat Layer2 ecosystem, designed to ease the Ethernet Square network congestion Layer2 extension solutions is booming, with more than $ 1 billion it is locked in the extended protocol.

Number one is the cryptocurrency exchange dYdX , which has locked in $ 285.6 million.

The scaling solution enables decentralized applications (dapps) to use a variety of different technologies to avoid network congestion. L2Beat tracks Layer2 rollup, which is an extended solution on top of the Ethereum blockchain that processes a series of transactions in batches before submitting them to the main chain as a single transaction.

Different versions of rollup-including Optimistic, Plasma, Validium and ZK-rollup-bundle and verify these transactions in different ways; among the top ten agreements in value, half are based on ZK-rollup, with a total locked amount of 5.4756 One hundred million U.S. dollars.

Source: L2Beat

The key difference between the different types of rollups is whether they store data on the chain or off the chain, and whether they use fraud proofs (providing evidence that the block is incorrect) or validity proofs (it provides that a block is correct). evidence of).

ZK-rollup uses data stored on the chain for validity verification, while Validium uses data stored off the chain for validity verification. At the same time, Optimistic rollup uses data stored on the chain for fraud proof; Plasma and State Pools use off-chain data for fraud proof.

An extended solution not tracked by L2Beat is Polygon , which the author of the website defines as a proof-of-stake side chain (essentially a clone of the Ethereum main chain, in which assets can be processed and moved, and can be called back to the main chain).

L2Beat defines Layer2 as “a security chain derived entirely or in part from L1 Ethereum, so that users do not have to rely on the honesty of L2 verifiers to ensure the safety of funds.”

The future of Ethereum expansion

The Ethereum network is in the process of transitioning to Ethereum 2.0, which will bring a new consensus mechanism-proof of rights and interests-and a new expansion mechanism-sharding. Sharding involves dividing large amounts of data into smaller parts. 

However, rollup still has a place as an expansion mechanism. By combining sharding with rollup and other scaling solutions, the Ethereum network may reach about 100,000 transactions per second.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/1-billion-is-being-locked-in-the-ethereum-layer2-scaling-solution/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Leave a Reply