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Vitalik Buterin asks Ethereum users to begin the transition to scalable second-tier solutions

FXcoins - Vitalik Buterin asks Ethereum users to begin the transition to scalable second-tier solutions

One of the biggest challenges facing Ethereum developers is offering scalable solutions for users. A massive explosion in the use of Ethereum-based decentralized finance (DeFi) platforms has pushed gas fees to new highs. In 2020, gas charges rose from 8 cents to over $ 14 by the last month of September. On the other hand, Ethereum users have been looking forward to the release of Ethereum 2.0, which promises massive scalability. Ethereum co-founder Vitalik Buterin recently proposed the concept of a "roll-up", Ethereum's level 2 scaling solution.


This Ethereum Layer 2 solution offers to store transactional data on-chain while taking the computational load off the chain at the same time.


Speaking at the virtual conference CoinDesk's Invest: Ethereum Economics, Vitalik Buterin reiterated his position on savings. Buterin said a few days ago that rollup packages offer 100x the throughput of transactions per second. Transaction throughput will have a multiplier effect when combined with sharding, Ethereum 2.0 is still under development.


Although sharding appears to be several years away, Buterin encouraged users to start using rollup packages. Buterin made it clear that convolutions are not a substitute for sharding. Speaking at the conference, Buterin added:


“If you are listening to this and are an exchange, wallet, mining pool, or large user - even an average user - then you should know what cumulative packages are and what they do. Basically, what is your strategy in terms of moving to them. "


In addition, Buterin also talked about ZK Rollups using zero knowledge proof. These push transaction throughput cumulative packages are anywhere between 1,000-4,000, Buterin said.


Ethereum 2.0 development and transition to Proof-of-Stake


Ethereum developers had a hard time with the launch of Ethereum 2.0. Phase 0 start, i.e. beacon chains are likely to happen very soon.


Speaking about implementing Ethereum 2.0 using Proof-of-Stake (PoS), Buterin said that stakers can be net profitable if they stay online at least 50-60% of the time. "Some of the other chains of proof of stake that come out [say] that if you are offline for 12 hours, you get cut, which is absolutely insane in my opinion," he added.


Higher rates will require more resources and complexity, Buterin said. Buterin also spoke enthusiastically about the proposed reform of the Ethereum platform fees market. He noted that they will first experiment with flexible block size limits. Referring to existing usage levels, Buterin said that since the fees will be eliminated, "it is highly likely that the amount of ether burned through the fees will exceed the amount sent to the stakers."

15 October 2020

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