Vitalik Buterin Confirms Solution to Scale Ethereum 100x is Coming Soon

Ethereum’s co-founder, Vitalik Buterin, sees the Ethereum network scaling by a 100 factor and predicts the release of Optimism’s layer-two solution in the next few weeks.

Buterin noted that Eth2 development projects concentrate on developing the chain melting with Ethereum on the Tim Ferriss podcast and are adamant that layer-two solutions will sustain the network before the sharding establishment. Sharding helps with the network’s capacity to process transactions and store data.

Eth2.0 Developments

In October, a Twitter thread revealed that the Eth2 roadmap was getting an update, and the scaling improvements would arrive sooner than previously anticipated. They would introduce the concept of rollups and combine it with sharding to create a synergistic effect to turbo-charge the Ethereum network capacity.

In the podcast, Vitalik shed light on rollups. He said that rollups are coming very soon, and they are fully confident that by the time they need any more scaling of that, sharding will have already been ready for a long time by then.

Rollups are secondary solutions to process and store transaction information on a specified side-chain before bundling transaction batches into the mainnet in Ethereum. The solutions aim to alleviate the scale-up of Ethereum, which resulted in fierce bandwidth competition on the Ethereum mainnet in high fees.

Whereas Eth2 uses sharding to ensure scalability when fully rolled out, Buterin claims that rollups are enough to increase the transactional performance of Ethereum by 100 times.

He added that you still have the blockchain’s ability to go up to somewhere between 1,000 and 4,000 transactions a second, depending on how complex these transactions are.

Optimism Rollups Will Launch Soon

Buterin continued to predict that Optimism is to launch its fully EVM-compatible Virtual Machine in a month. He also underlines Arbitrum’s significant achievements in its EMV-compatible rollouts.

Optimistic rollups rely on fraud evidence to avoid invalid state transfers. Some DeFi industry leaders will welcome them, and analysts speculate that the future Uniswap V3 update will use this. One of the first projects to use the technology will be Aave and Synthetix.

Ethereum CEO added that there are simpler rollups that can only process basic transactions exchanged between assets such as Loopring and zkSync. These rollups have been stable for approximately a year now — even rollouts are not theory. For nearly one year, they were a functional part of Ethereum’s scalability for a few users.

Last week, Buterin made the draft system to direct smart contract protocols across various layer-two scaling solutions. As the Ethereum network is bringing staking abilities to the crypto space, the blockchain DeFi world has been getting flooded with investors. As the community is commonly seeking each of these features, the hype around Ethereum becomes even more apparent.

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Loopring Sees 40,000 Daily Transactions as Ethereum Fees Rise

In brief

  • Ethereum’s second-layer solution Loopring was used to make 40,000 transactions in just one day.
  • This is equal to roughly 3.25% of Ethereum’s mainnet transactions during the same time.
  • As Ethereum fees keep growing, second-layer solutions are becoming increasingly prevalent, experts noted.

Loopring, a second-layer solution on Ethereum (ETH), was used to make 40,000 transactions yesterday—that equals to 3.25% of transfers conducted on the Ethereum mainnet that day.

“When the gas gets going, Ethereum L2 gets rolling. More Loopring zkRollup transactions yesterday than any day before. ~40k txs. That’s quite a lot,” Loopring tweeted.

The developers added that around 1.23 million transactions were conducted on the Ethereum mainnet during the same time period, thus Loopring’s transaction count was equivalent to 3.25% of that figure.

Second-layer solutions allow executing certain operations outside of the main blockchain—or “off-chain”—which, in turn, helps reduce the load on the main network. As an added bonus, layer two solutions offer faster transaction speeds and lower fees.

Loopring, in particular, is a zkRollup exchange and payment protocol. It’s an orderbook-based decentralized protocol on Ethereum that allows users to transfer their assets across various exchanges.

To achieve this, Loopring pools orders from numerous crypto exchanges and then matches them with orderbooks of all platforms that participate in the network. This way, according to its developers, Loopring cuts transaction costs to just 0.1% of those on the Ethereum mainnet.

As Decrypt reported, the average Ethereum transaction fee exceeded $23 on February 5, reaching a new all-time. In this light, transactions and decentralized applications on Ethereum are becoming increasingly more expensive.

As a result, trading on decentralized exchanges, such as Uniswap, has become increasingly expensive in the last few weeks. Executing trades can cost $50 or more.

“Cost of usage increases with gas fees, which aren’t directly tied to ETH price, but rather to demand for layer 1 blockchain space. The two are certainly correlated. This has long been a focus in crypto – ethereum (and all layer 1s) need to move most transactions off of layer 1,” recently wrote Ari Paul, co-founder and chief investment officer of BlockTower Capital.

Considering Loopring’s latest achievement, it looks like many users agree with him.


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Band, Loopring (LCR) and Cream secure a slice of DeFi with new partnerships

The U.S. dollar lost about 7% of its value in 2020, while Bitcoin rallied about 300% during the same period. As Bitcoin’s institutional adoption increases, United States companies may start to diversify their treasury with other stores of value, and Bitcoin (BTC) stands a good chance to garner a portion of it.

Crypto market data daily view. Source: Coin360

Ark Invest’s latest report, “Bitcoin: Preparing for Institutions,” shows that even a paltry allocation of 1% by companies from the S&P 500 could boost Bitcoin’s price by $40,000. However, analysts at Ar believe that the allocation is likely to be in the range of 2.5% to 6.5%, which “could impact bitcoin’s price by $200,000 to $500,000.”

Even as Bitcoin’s price consolidates and readies for the next leg up, several altcoins have been rising, backed by strong fundamentals and investors’ high expectations of their upcoming products. Let’s look at three such tokens today.