Ethereum is finally moving to proof-of-stake this year, and with that, the aim is to:
“Ultimately address some of the gas fee issues.”
One of the primary methods to reduce gas fees are layer-2 solutions. Chains such as Polygon process over 3 million transactions per day and have hundreds of millions of addresses.
The question is, will layer-2 networks like Optimism, Boba Network, Arbitrum One, and Polygon be viable after The Merge? We spoke to various web3 founders to get their perspectives on the most significant event in crypto history.
Layer-2 solutions
Layer-2 networks work on top of the Ethereum network, referred to as Layer-1. There are several types of Layer-2 protocols. Essentially, layer-2s independently process transactions to complete more transactions per second with lower gas fees; the transactions are then registered in the Ethereum blockchain at a later time.
If Ethereum’s move to proof-of-stake achieves its goal of addressing gas fees and transaction volume, then the need for layer-2s becomes reduced. Additionally, the move to proof-of-stake comes with the potential to improve the mechanism for securing the network. Founder of Ethereum, Vitalik Buterin, argued that proof-of-stake offers:
“Greater efficiency and their better ability to handle and recover from attacks.”
Post-merge scaling solutions
The increased efficiency of Ethereum may be of benefit to layer-2s. Alan Chiu, CEO/Founder of Boba Network, a Layer 2 Optimistic Rollup scaling solution, told us:
“As Ethereum L1 becomes more efficient, L2’s will simply become that much more efficient right alongside, all while maintaining their current added benefits.”
As Harold Hyatt, Product Manager of DAO & DeFi at Trusttoken, explains:
“Ethereum-based scaling solutions (L2) scale with ethereum, so if ethereum scales in the future (sharding), L2s also scale. if Optimism is 10x faster than L1, then Ethereum is 10x after…
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