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Networks Are In The Works Of Ethereum Layer 2 Scaling – Faster Transactions

Ethereum layer 2 scaling are in the works and networks are working furiously to go live. The Hermez network uses ZK-rollups for scalability technology and has already gone live. With this development occurring, users will be able to make transfers on a lower gas cost. “People should save around 90% of gas costs,” Hermez’s tech lead Jordi Baylina stated.

The average gas fee at the moment is $16 per transaction. With 90% of the gas cost reduction, this brings the price to $1.5 per transaction. The limited processing capabilities of the mainnet and high transaction fees has led to the development of layer 2 solutions.

Layer 2 solutions consist of: state channels, side chains, plasma, optimistic rollups, zk-rollups, and validium.

Since the beginning of the Ethereum network, congestion has always been a major concern. The congestion of the network hit record highs in 2017 and again have reached peaked capacity as of late.

Layer 1 & Layer 2 Ethereum 2.0

Ethereum layer 2 scaling involves 2 layers which will eventually power Ethereum 2.0. Layer 1 is the standard base where all of the transactions are settled. Layer 2 consists of security which is being on top of layer 1

Ethereum can currently process around 15 transactions per second on it’s base layer. With the scaling of layer 2, this will improve transaction and processing speed that can support up to 2,000 – 4,000 transactions a second.

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Layers 1 vs Layer 2 Scaling

Ethereum Layer 2 Scaling Solutions

Layer 2 scaling solutions is a collective term for the solutions being created to improve the capabilities of layer 1.There are multiple scaling options available right now, each having their own pros and cons. We will be covering the various scaling methods and how they work.


Plasma, in the scope of Ethereum layer 2 scaling is an interesting method. Originally proposed by Joseph Poon and Ethereum’s creator Vitalik Buterin, plasma is a layer 2 scaling option. Using the smart contracts and Merkle trees to activate the creation of unlimited child chains on the Ethereum blockchain.


Channels allow people to exchange their transactions off-chain multiple times while only submitting two transactions to the base layer. These channels have the potential to process thousands of transactions per second.

Side Chains

Side chains are independent blockchains with their own consensus models and block parameters that make them Ethereum compatible.

Roll Ups 

Roll ups can help scaling with their ability to bundle sidechain transactions into one transaction. This process is known as a SNARK (succinct non-interactive argument of knowledge) this is the only proof submitted to layer 1. While using rollups all transaction states and executions are on the sidechain.

The Ethereum community has been focused on scaling with roll ups for the time being. This makes for future developments of Ethereum 2.0 a bit more consistent and provides guidelines for further improvements.

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