Sirwin
Sirwin

Need for More Layer 1s in Crypto

By idiosyncratic | Idiosyncratic Crypto | 29 May 2023


The Ethereum mainnet is used to stucking at some point because of thousands of transactions initiated by the crypto people. Though the consensus model has been shifted to Proof of Stake to increase efficacy and lots of updates have taken place on the mainnet, we still experience serious issues with the transaction fees which keep increasing.

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Back in 2017 - 2018, the debut of a brand new hype project on Ethereum would be enough to skyrocket the transaction fee to more than $100 per transaction. In time, we were able to overcome some major problems related to the mainnet activities but it seems like we also have a long way to go.

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If you ask crypto investors about their biggest nightmares to happen (excluding hack or rug-pull), they would say failing Ethereum transactions after paying tens of dollars for a single tx. Unfortunately, it started to happen due to congestion on the chain happened as a result of PEPE and other meme coins trend.

Layer 2 to Save?

Hard to admit but it was one of the easy stress tests for Layer 2 projects to prove their solutions for blockchain. However, they all failed in the test with Ethereum's increasing transaction costs.

After some time, the transaction fees started to drop and became affordable. Yet, it was torture for those who used the Ethereum chain for any transaction in the last two days.

L2Fees is a nice website where you can track the average transaction cost on Ethereum layer 2 solutions.

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Ideally, these projects should enable crypto people to initiate transactions for very small amounts (below $0.1) but the reality is far away from these numbers. Though the chart shows some milder numbers, you can assume the tx fees are around 20% more than them.

Other Layer 1 projects lessen the burden on the Ethereum network. I believe these days prove the importance of having 3 - 5 solid mainnets where we can cross-chain our assets in cases of necessity.

Luckily, the transactions do not consume Hive and we enjoy transactions that are free-from-fee. The resources credits let us save tens of Hive in a year.

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idiosyncratic
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Crypto-Blogger 🖊Blockchain Gamer 🎮 https://read.cash/@idiosyncratic https://noise.cash/u/idiosyncratic1 https://leofinance.io/@idiosyncratic1


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