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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