Ethereum “Layer 2 Scaling” Trends

The concept of Layer 2 expansion has been around for a long time. It is a technical solution to improve and expand the transaction performance of the main chain of the blockchain. The core idea of ​​the second layer expansion is to take high-frequency and cumbersome transactions from the main chain of the blockchain to the off-chain as much as possible, and execute them in other systems off the chain to reduce the resource consumption on the main chain.

Layer 2 scaling is easily confused with sidechains. The core difference between the two schemes is that the security of the second layer extension must be guaranteed by the blockchain main chain, while the side chain does not need it.

From this point of view, currently widely used public chains such as BSC, HECO, OKEX, Polygon, FTM, etc. are self-contained because they have their own consensus mechanisms and verification nodes, and on the other hand, they are all compatible with Ethereum Virtual Machines (EVMs), so they can be counted as Ethereum sidechains.

The final transaction results of Optimism, Arbitrum, ZK-Sync, StarkWare, etc. still have to be submitted to Ethereum for verification, so they are the second layer extension of Ethereum.

Among the existing blockchains, the second-layer expansion ecology of Ethereum is the most abundant, so I mainly focus on the second-layer expansion of the Ethereum ecology.

What Ethereum is most criticized for and is likely to be criticized forever is performance issues: this is determined by its basic characteristics – in the impossible triangle, the Ethereum core team chose decentralization and security, Then its inherent short board must be performance. Therefore, the expansion of Ethereum’s performance will be its eternal issue.

It is also its inherent shortcomings in performance that have given countless competitors to use performance as a breakthrough to erode its ecology and undertake its ecological overflow value: the most typical of the last wave is EOS, the most typical of this wave is BSC, Solana et al. I believe that there will be new competitors in the future that will still compete with Ethereum based on performance.

At the moment, the fastest and most effective way to improve Ethereum’s performance is layer 2 scaling. The development of the second-layer expansion technology and ecology is not only the need for the development of Ethereum itself, but also the main way to expand the Ethereum for a long period of time in the future. Its importance and urgency have somehow surpassed the sharding technology originally planned for Ethereum 2.0.

So not only in 2022, but I even think that the development of Ethereum’s second layer scaling will always be a hot topic and focus as long as the sharding technology is not fully formed.

The most popular second-layer expansion technology is Rollup, which can be subdivided into two types: Op-Rollup and ZK-Rollup.

Due to its relatively simple technical implementation and very good compatibility with EVM, Op-Rollup is currently the fastest and has the highest penetration rate. Typical projects are Optimism and Arbitrum. I believe this momentum will continue. In 2022, these two projects will continue to conquer cities and attract more projects from the Ethereum ecosystem.

It is worth noting that these two projects currently do not have their own generation bi, so once they release bi, it will definitely attract quite a wave of popularity, so these two projects are the focus of attention in 2022.

But I think the ultimate solution for Rollup, or the technology most promising to occupy the mainstream market share in the long run, is most likely ZK-Rollup. It is technically more secure, but it is much more difficult to implement than Op-Rollup, especially when it is compatible with EVM. It is this difficulty that makes its implementation and landing progress far less than that of Op-type projects. But the good news is that ZKSync and StarkWare, two top projects in this field, are making great strides. In addition, there is a Chinese team in this field, which is also quite popular and worthy of attention.

The development of ZK technology is much faster than the industry imagined. I believe that in 2022, ZK technology is very likely to achieve major breakthroughs and rapidly rise in the market.

ZK projects such as ZKSync and StarkWare have not released their own code bi, which is also a highly anticipated event in the circle. If they make significant progress and issue tokens in 2022, it will also drive a huge wave of popularity.

Therefore, the second layer expansion technology in 2022 will be one of the focuses of my attention, and the ZK technology is the focus of the focus.

There is another point worth paying attention to here: At present, some teams have begun to pay attention to the cross-chain technology between the second-layer extensions. In my opinion, this cross-chain is far more meaningful than the cross-chain of Polkadot, COSMOS and the current cross-chain bridge between different blockchains. Because it is very likely that there will be a large number of second-layer extension sub-ecologies in the future Ethereum ecosystem, there must be cross-chain requirements between these sub-ecologies. Therefore, this kind of cross-chain is an inevitable rigid need.

As for the cross-chain requirements between other blockchains, I am cautious.

As I wrote in the previous article, I believe that many blockchains will still exist in the future, even EOS will continue to exist, but if their ecology is not prosperous, the meaning of cross-chain in those ecology is quite limited .

Let’s take an analogy from a real-life case: state-of-the-art transportation technology is always used between several large cities. No matter how developed the transportation facilities between several big cities are, once there is faster and more convenient intercommunication technology, the first ones to be put into use are always between several big cities. So we see that in Beijing, Shanghai, Guangzhou, and Shenzhen, there are expressways, and airports, and airports, and high-speed rail. With high-speed rail, there may be maglev in the future.

why? Because their ecology is the most developed, traffic is always blocked, and the need for intercommunication is always just a need.

The traffic between fourth- and fifth-tier cities may always stay at the level of county-level highways, because the ecology of those cities is quite sluggish, and the demand for intercommunication between them is not strong and not important.

Posted by:CoinYuppie,Reprinted with attribution to:
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