Ethereum suffers from high gas costs for a long time. So what is the development of Layer 2’s Arbitium ecosystem?

When the gas fee skyrocketed again, a discussion about the scalability of the Ethereum blockchain came back to the center of the stage.

In fact, the high gas fee is only the tip of the existing problem of Ethereum. The demand for transactions is still more than the amount that the Ethereum blockchain can actually bear each time is the root cause.

This article attempts to start from what the expansion plan is, the types of current expansion plans for popular science, and finally introduce the ecosystem of the Arbitium expansion plan.

Ethereum suffers from high gas costs for a long time. So what is the development of Layer 2's Arbitium ecosystem?

Ethereum Gas Fee

What is the expansion plan?

Scaling refers to increasing transaction throughput (the number of transactions that can be processed) and increasing transaction speed. The following figure lists all the current feasible expansion plans

Ethereum suffers from high gas costs for a long time. So what is the development of Layer 2's Arbitium ecosystem?

All current expansion plans @yasminekarimi_

It can be seen from the figure that the extension scheme is divided into two types, layer1 (first layer) and layer2 (second layer). What are they?

  • layer1 extension scheme

The layer1 extension solution deals with the underlying protocol, which is the code of the main network blockchain itself, to improve the transaction capabilities of the blockchain.

The Layer1 extension scheme itself can be divided into two types: protocol improvement and fragmentation.

Protocol improvements:

Protocol improvements are changes to the underlying protocol to expand transaction throughput.

Specifically, by increasing the number of transactions that can be placed in a block (only sustainable in the short term), reducing the time difference between block creation, or by the structural transformation from the proof-of-work consensus model to the proof-of-stake POS accomplish

Fragmentation:

Sharding divides the computing tasks and data space of a blockchain into multiple chains (there are more than 63 in Ethereum 2.0).

The sharding blockchain protocol naturally means dividing the nodes of the initial network into smaller groups, each of which is responsible for approving a unique subset of pending transactions and storing a subset of the global state.

  • layer2 extension scheme

Layer2 refers to a network or technology that runs on top of the underlying blockchain protocol to improve its scalability and efficiency.

For example, the relationship between Bitcoin and Lightning Network, to put it bluntly, is the same as the Ethereum mainnet, but faster!

This type of extended solution requires that part of the transaction burden of the blockchain protocol be transferred to the adjacent system architecture (Pharaoh next door), and the Pharaoh next door handles it before reporting to the main blockchain to finalize its results.

By abstracting most of the data processing into auxiliary architectures, the underlying blockchain becomes less crowded-ultimately more scalable.

Layer2 expansion scheme can be more! Because the change of the stack protocol is bound to be limited, but the “Jenga” method can be more.

Side chain: A side chain is a transaction chain adjacent to the blockchain, which is usually used for large-volume transactions. The side chain uses an independent consensus mechanism—that is, separated from the original chain—that can be optimized for speed and scalability. The transactions are all done by the side chain, and the main network Ethereum only needs to maintain the overall security and confirm the batch transaction records, which is much smoother, such as Polygon.

Nested blockchain (Plasma):

The nested second-level blockchain runs on top of the main chain. Basically, the first layer sets the parameters, and the nested second layer blockchain executes the process.

There can be multiple blockchain levels on a main chain. Think of it as a typical company structure. Instead of having one person (for example, the manager) complete all the work, the manager assigns tasks to subordinates, who report to the manager after completing their tasks.

By doing so, the burden on managers is reduced while improving scalability.

Status channel:

The state channel allows two-way communication between blockchain participants. In doing so, participants can reduce waiting time because no third party (such as miners) participates in the process, and after completing the entire transaction set, they add the final channel state to the blockchain. This type of extension is typically Lightning Network.

Rollups:

Rollups aggregates transactions in a single “batch”, uses compression tools (for example, scientific symbols to reduce the length of value, in bytes) and verifies them off-chain, and then stores the state data in the layer 1 extension scheme To expand the main network.

Compression and batch processing bring higher throughput, making each transaction faster and minimizing costs.

  • The relationship between layer1 and layer2

The difference between layer1 and layer2 can be clearly observed from the figure below. Layer1 is to make changes on the main chain, while layer2 is to superimpose the chain on the main chain.

Ethereum suffers from high gas costs for a long time. So what is the development of Layer 2's Arbitium ecosystem?

Schematic diagram of the relationship between Layer1 and layer2

Arbitium expansion plan

Arbitrum technology is one of many layer2 solutions, belonging to the Rollups solution mentioned above. But Arbitrum is Optimistic Rollup, that is, optimistic Rollups.

This optimism is reflected in the fact that only when a node suspects that a transaction is fraudulent, will the proof calculation be performed, thereby further improving the transaction speed and throughput. In other words, Optimistic Rollup follows the principle of “human-oriented goodness”.

Simply expanding the scale is not enough. While increasing its transaction throughput, the blockchain must retain the two basic properties of blockchain technology: decentralization and security. This is the so-called blockchain trilemma.

As of now, the only Ethereum expansion plan that can meet these three elements is rollups like Arbitrum.

In terms of processing power, Arbitrum should be able to achieve 40,000 TPS, which is 5 times the average cost advantage compared to using the underlying Ethereum expansion.

In addition, Arbitrum is actually working hard to further reduce costs by 90%-95%.

Arbitrum is by far the most compatible layer 2 expansion solution for EVM. This makes it almost effortless for developers to migrate existing Ethereum applications to rollups because they do not need to rewrite the code.

Arbitrum can currently support countless dApps and is the largest Ethereum second layer network.

Arbitrum’s daily transaction volume has been rising, as of today, November 30, 2021, the number of transactions reached 2,902.

Ethereum suffers from high gas costs for a long time. So what is the development of Layer 2's Arbitium ecosystem?

Arbitrum daily transactions

As of November 30, 2021, the total lock-up volume on Arbitrum has reached 2.43 billion USD

Ethereum suffers from high gas costs for a long time. So what is the development of Layer 2's Arbitium ecosystem?

Arbitrum lock-up volume

Arbitrum’s daily number of new wallets has also continued to rise, reaching 186 new wallets per day, and the total wallet address has reached 291,876.

Ethereum suffers from high gas costs for a long time. So what is the development of Layer 2's Arbitium ecosystem?

Number of new wallets added on Arbitrum Day

Arbitrum ecology

Since the launch of Arbitrum One on August 31, more and more projects have announced cooperation with it. As can be seen from the ecological map below, the Arbitrum ecosystem has become more and more abundant.

The Arbitrum ecosystem can be divided into cross-chain bridges, wallets, tools, and dapps, as shown in the figure below.

Ethereum suffers from high gas costs for a long time. So what is the development of Layer 2's Arbitium ecosystem?

Overview of Arbitrum One Ecological Map

Wallet

The wallet list is as follows, including traditional wallets, DeFi wallets, smart contract wallets and other infrastructure.

Ethereum suffers from high gas costs for a long time. So what is the development of Layer 2's Arbitium ecosystem?

Tools

Ethereum suffers from high gas costs for a long time. So what is the development of Layer 2's Arbitium ecosystem?

Dapps decentralized applications

Ethereum suffers from high gas costs for a long time. So what is the development of Layer 2's Arbitium ecosystem?

Cross-chain bridge

Ethereum suffers from high gas costs for a long time. So what is the development of Layer 2's Arbitium ecosystem?

Summarize

From the above overall point of view, Arbitrum is a layer 2 with a future, with strong performance, good compatibility, complete ecology and so on.

Before the arrival of Ethereum 2.0, Arbitrum provided a nearly perfect solution, looking forward to the future of Arbitrum!

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/ethereum-suffers-from-high-gas-costs-for-a-long-time-so-what-is-the-development-of-layer-2s-arbitium-ecosystem/
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.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-11-30 14:13
Next 2021-12-01 07:12

Related articles