{"id":200544,"date":"2021-11-18T01:00:14","date_gmt":"2021-11-17T19:30:14","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=200544"},"modified":"2021-11-17T15:50:21","modified_gmt":"2021-11-17T10:20:21","slug":"ethereum-identifying-the-problem-despite-rollups-cutting-fees-by-90","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/ethereum-identifying-the-problem-despite-rollups-cutting-fees-by-90\/","title":{"rendered":"Ethereum: Identifying the problem despite rollups cutting fees by >90%"},"content":{"rendered":"

There’s usually something going on in the Ethereum ecosystem. Whether it’s a new NFT collection or the sky-high gas fees<\/a>, there are always eyes on the second-largest crypto by market cap. In the frenzy of activity, however, it’s easy to miss out on Ethereum’s layer 2 solutions – The smart contract rollup chains.<\/p>\n

Rolling into the future<\/h4>\n

Rollups are a layer 2 solution to reduce congestion on the Ethereum mainnet by handling transactions externally. A recent report by Arcane Research<\/a> analyzed how much of a difference this has made to the blockchain’s ecosystem.<\/p>\n

The report found<\/a> that rollups like Arbitrum One and Optimism have reduced fees by 90% or more.<\/a> For example<\/a>, if transferring ETH costs $18.11 and swapping tokens costs $90.55, Optimism cost less than $0.01 for both these activities.<\/p>\n

And yet, the trade-off is speed. The report observed<\/a>,<\/p>\n

“However, both StarkNet and zKsync plan on launching EVM-compatible zK- rollups soon. Compared to Optimistic rollups where native withdrawals of any asset takes more than one week, zK-rollups reach finality of Ethereum in roughly 10 min.”<\/p><\/blockquote>\n

At the Wanxiang Blockchain Summit, Vitalik Buterin spoke<\/a> about how participants could deposit and withdraw money from the launched rollup networks. Further, he claimed<\/a> that one rollup would enable a 10x expansion.<\/p>\n

\"\"<\/a>
Source: Arcane Research<\/a><\/figcaption><\/figure>\n

Not quite rock and roll<\/h4>\n

Despite these stats, a closer look at Arbitrum is a must. The layer 2 solution’s total value locked [TVL] shot past $2 billion, but this isn’t the only indicator that matters. As previously reported<\/a>, Arbitrum could not sustain its growth momentum. While it saw growth rates<\/a> of 192,578% in September, this was 134% in October and in the single-digit range during the first week of November.<\/p>\n

Put simply, Ethereum’s scaling challenge is yet to be firmly resolved.<\/p>\n

Arcane Research’s report added<\/a>,<\/p>\n

“Many rollup projects are still in their early stage, and do not yet have a token.”<\/p><\/blockquote>\n

In the loop<\/h4>\n

Loopring has been making headlines in recent days. A major reason for this was the rumor that the protocol could be teaming up<\/a> with GameStop for an NFT marketplace.<\/p>\n

On its own, however, Loopring, which uses zk-rollups, has been seeing a rise in TVL and is nearing the $600 million mark.<\/p>\n

Just a week ago, the protocol’s TVL hit an ATH<\/a> of $459 million.<\/p>\n

\"\"<\/a>
Source: l2beat.com<\/a><\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"

There’s usually something going on in the Ethereum ecosystem. Whether it’s a new NFT collection or the sky-high gas fees, there are always eyes on the second-largest crypto by market cap. In the frenzy of activity, however, it’s easy to miss out on Ethereum’s layer 2 solutions – The smart contract rollup chains. Rolling intoContinue reading “Ethereum: Identifying the problem despite rollups cutting fees by >90%”<\/span><\/a><\/p>\n","protected":false},"author":48,"featured_media":200558,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[31,32,66,3,4,20],"tags":[],"class_list":["post-200544","post","type-post","status-publish","format-standard","has-post-thumbnail","category-altcoins-news","category-ethereum-news","category-new-news","category-news","category-social","category-trading-view"],"acf":[],"yoast_head":"\nEthereum: Identifying the problem despite rollups cutting fees by >90% - AMBCrypto<\/title>\n<meta name=\"description\" content=\"Rollups are a layer 2 solution to reduce congestion on the Ethereum mainnet by handling transactions externally. 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