Dealing with a dicey topic, Ethereum in-charge Vitalik Buterin has described the layer 2 scaling as successful. His views also come in the wake of Ethereum’s attempted transition from version 1.0 to 2.0. While the “basically successful” development is at the toe end, the scaling challenges are not as small too.
Layer 2 Scaling and the whole idea behind it
The functionality of layer 2 is that of a secondary level protocol. This protocol is like the second round over the framework of an existing blockchain. Meanwhile, the core issue that layer 2 looks to deal with is the speed of the transactions. Moreover, network growth or scaling remains an additional challenge too. The idea of increasing the throughput to provide scaling ease to the network is paramount. This provides the network with an ability to multiply the TPS rate. Moreover, it is also important for the future growth prospect if the giants are looking to go bigger.
Ethereum’s Tryst with Layer Scaling 2.0
The idea behind the layer 2 scaling is to shift allegiance from the proof-of-work methodology. The change looks to take the blockchain network to a proof-of-stake ideology in the process. By doing so, the increase in throughput will provide Ethereum with the ability to broaden its horizon. Doing so will mean the propagation of network features to a broader scale.
Buterin sounded upbeat in defining the idea as ready for use in 3 major features. The features also namely include the payment methods and the easy transfer of tokens. The third and the tricky one is the implementation of Decentralized Exchanges. Meanwhile, these 3 are also the major prospects that feature in the leading network. Hence, the immediate application of the layer 2.0 scaling will see almost any and every function being affected too.
Difficulties in the Immediate Line of Sight
Dealing with difficulties for such revolutionary networks is also nothing new. However, Ethereum is cautious that large scale changes will affect the user end too. It means the use of updated features and digital wallets with the ability to upgrade as well. The wallets also need to support the changes that come around in doing so.
Another aspect was also highlighted by the StarkWare boss Uri Kolodny. The fact that the implementation of such an idea brings large scale changes is paramount. People need to gauge an understanding of the idea and comprehend the possibilities.
However, because the basic idea is the creation of a secondary framework, there is no core change in the structure. The “off-chain” will work in an individual manner that gives the workability of an added layer.
Buterin is also clear in his stance that there are no technical challenges as such. Whatever remains is the ability to adapt to these challenges at the user and network end. Even though the idea has found a significant delay from its original launch, the work remains right on track.
Effect on the Market
The buying trend has been going up steadily for the whole of May 2020. The value of the token is on an all-time roll and stands clear of the $250 barrier to breach. Because of the potential outcome, the stakes are high. In anticipation, the buyers are investing and holding to utilize the anticipation and convert it into something meaningful. The variation in the rewards is also meant to vary and shall not roll out immediately after the introduction of phase 0. An increase in the validators will see a simultaneous slide in the rewards segment too.
Originally published at https://cryptomagis.com.