As the popularity of Ethereum Tier 2 increases, so do Ethereum gas fares. This is because layer 2 of the network requires high volumes of gas
Ether Benefits of Tier 2 Expansion
Tier 2 networks are consuming the highest ever amount of gas on Ethereum’s mains. According to data from Dunne on the channel, Tier 2 networks spent over $ 52 billion on gas in May alone. The most obvious example is last Wednesday, the day after Optimism launched its OP governance sign. Today, there is around 3.95 billion gas expenditure on all Tier 2 networks.
For a better comparison, consider the total monthly gas consumed by layer 2 networks on Ethereum in May 2021. The monthly total gas was about 5 billion, and by May 2022 it was about 52 billion, which showing a more than tenfold increase in total gas usage. .
As Ethereum traffic increases, every ETH holder gets value from it. Effectively, the gas tariff on Ethereum is burned, which reduces the overall supply of ETH and thus increases the value of the remaining signals. In this way, Ethereum takes advantage of the current use of its blockchain networks by layer 2. These use its block space to arrange transactions in a more efficient way than what can be done directly on the mainnet .
Layer 2 is a fairly generic term used to refer to technology solutions that incorporate blockchain scaling that processes transactions on specific networks and then sends them back to the Ethereum mainnet for settlement. Tier 2 networks include Optimism and Aribrum, which are tier 2 networks based on a cryptocurrency technology called Optimistic Rollups. Both of these networks complement out-of-chain transactions, which are settled in a single operation on Ethereum’s main network in an effort to reduce the transaction burden.
Series 2 networks and side chains
Do not confuse layer 2 networks with side chains.
Polygon’s Matic blockchain is an example side chain. The IS side chains have their own consensus mechanisms.
Layer 2 networks, on the other hand, unload Ethereum from the transaction overhead, but get its security borrowed or by inheritance by fixing their lot on the mainnet. This results in an interesting dynamic in which Tier 2 transactions become cheaper for users, but mainnet transactions are still expensive enough to cover the significant security cost of Ethereum.
Commenting on the rise in Tier 2 usage on Twitter today, Polygon co-founder Sandeep Nailwal speculated that Ethereum could change over time from a user-centric to a network-centric chain, where it primarily settles Tier 2 network transactions in batches. instead of individual transactions from the mainnet user generated. ” As I said before, #Ethereum is moving from a B2C (user to chain) business model to a B2B (chain to chain) model. “, he said, eventually adding,” L2 chains would use a majority of Ethereum gas. »
Finally, remember that the Ethereum network is currently working on its merger, which allows it to move from a validated protocol Proof-of-Work to protocol Proof of the question. Contrary to many users’ expectations, this translates to Proof of Bet it will not have a significant impact on gas costs.
Source: CRYPTO INFORMATION
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Luc Jose Adjinacou
Far from dampening my enthusiasm, an unsuccessful investment in cryptocurrency in 2017 only increased my enthusiasm. So I decided to study and understand the blockchain and its many uses and put forward my pen information related to this ecosystem.