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According to Buterin, the proposed rollups are not a new thing and will hold until Ethereum 2.0 is fully launched.
High transaction fees and mind-blowing token exchange fees on the Ethereum ecosystem will be history in coming weeks, Vitalik Buterin noted. The Ethereum co-founder was speaking on the Tim Ferriss podcast, where he noted that proposed rollups will scale the Ethereum ecosystem 100X in the coming weeks.
“We’re fully confident that by the time that we need any more scaling of that, sharding will have already been ready for a long time by then.”
Proposed Rollups on Ethereum Blockchain
The second most valuable digital asset by market capitalization and smart contract leader is seeking to retain its position amid increased competition. There has been an emergence of cheaper alternatives including the Binance Smart Chain that has seen its native coin BNB rally exponentially.
However, Ethereum developers are working round the clock to help scale the network. Notably, the Ethereum ecosystem holds a significant portion of the DeFi industry that is projected to hit $10 trillion and 1 billion users in a few years. Besides, there has been a huge influx of institutional investors into the crypto market as demonstrated by the Grayscale AUM growth. According to the latest update on the Grayscale Twitter page, Ethereum holds the second position with approximately $5.79 billion invested.
Rollups on the second layer will significantly decongest the network and thus lower the transaction fees. The proposed rollups are expected to seamlessly transition the Ethereum ecosystem to Eth2.0 mainnet.
“The thing to remember is that if you have rollups, but you do not have sharding, you still have 100X factor scaling, right? You still have the ability for the blockchain to go up to somewhere between 1,000 and 4,000 transactions a second, depending on how complex these transactions are,” Buterin explained.
According to Buterin, the proposed rollups have been rigorously tested in the past year. Whereby assets like Loopring and zkSync have successfully been exchanged through rollups. “There was actually simpler rollups that are only capable of processing simple transactions that are exchanging between assets like Loopring, and zkSync,” he added, noting: “Those rollups have already been running stably for about a year – so roll-ups aren’t even theory. They’ve been a practical part of [the] scalability of Ethereum for a few users for almost a year.”
Besides the expected rollups, the Ethereum network is expecting a hard fork among other upgrades. Ethereum investors and enthusiasts are closely monitoring the events and the possibility of solving high transaction fees challenges. The asset was trading around $1,848.03, after adding approximately 23% in the past seven days according to CoinGecko.