🚨 ATTENTION 🚨
“The Merge” (formerly known as ETH 2.0) WILL NOT MAKE GAS FEES LOWER. 😑
What WILL make gas fees lower:
- L2 Roll-ups (@arbitrum, @optimismPBC, etc)
- Sidechains (@0xPolygon, @avalancheavax, etc)
- Sharding (after “The Merge”)
How? Ok, here's a thread 🧵
1/
“The Merge” (formerly known as ETH 2.0) WILL NOT MAKE GAS FEES LOWER. 😑
What WILL make gas fees lower:
- L2 Roll-ups (@arbitrum, @optimismPBC, etc)
- Sidechains (@0xPolygon, @avalancheavax, etc)
- Sharding (after “The Merge”)
How? Ok, here's a thread 🧵
1/
https://twitter.com/NathanHeadPhoto/status/1455516975476641792
There are two types of scaling solutions:
- on-chain scaling
- off-chain scaling
You should have a good understanding of all the foundational topics.
Scaling solutions are less battle-tested, and continues to be researched and developed.
2/
- on-chain scaling
- off-chain scaling
You should have a good understanding of all the foundational topics.
Scaling solutions are less battle-tested, and continues to be researched and developed.
2/
ON-Chain Scaling
Sharding - main focus for on-chain scaling.
Splits a database horizontally to spread the load.
Reduces network congestion and increases TPS by creating new chains (shards).
Validators are no longer required to process ALL of transactions on the network.
3/
Sharding - main focus for on-chain scaling.
Splits a database horizontally to spread the load.
Reduces network congestion and increases TPS by creating new chains (shards).
Validators are no longer required to process ALL of transactions on the network.
3/
OFF-Chain Scaling (L2)
Layer 2 - Rollups - perform transaction execution outside layer 1 and then the data is posted to layer 1 where consensus is reached.
As transaction data is included in layer 1 blocks, this allows rollups to be secured by native Ethereum security.
4/
Layer 2 - Rollups - perform transaction execution outside layer 1 and then the data is posted to layer 1 where consensus is reached.
As transaction data is included in layer 1 blocks, this allows rollups to be secured by native Ethereum security.
4/
OFF-Chain Scaling (L2)
Layer 2 - State Channels - utilize multisig contracts to enable participants to transact quickly and freely off-chain, then settle finality with Mainnet. Minimizes network congestion, fees, and delays.
Two types - state channels & payment channels.
5/
Layer 2 - State Channels - utilize multisig contracts to enable participants to transact quickly and freely off-chain, then settle finality with Mainnet. Minimizes network congestion, fees, and delays.
Two types - state channels & payment channels.
5/
OFF-Chain Scaling (Sidechain)
Sidechains - A sidechain is an independent EVM-compatible blockchain which runs in parallel to Mainnet.
These are compatible with Ethereum via two-way bridges, and run under their own chosen rules of consensus, and block parameters.
6/
Sidechains - A sidechain is an independent EVM-compatible blockchain which runs in parallel to Mainnet.
These are compatible with Ethereum via two-way bridges, and run under their own chosen rules of consensus, and block parameters.
6/
OFF-Chain Scaling (Plasma)
Plasma - A plasma chain is a separate blockchain that is anchored to the main Ethereum chain, and uses fraud proofs (like Optimistic rollups) to arbitrate disputes.
7/
Plasma - A plasma chain is a separate blockchain that is anchored to the main Ethereum chain, and uses fraud proofs (like Optimistic rollups) to arbitrate disputes.
7/
Why are so many scaling solutions needed?
- Multiple solutions can help reduce the overall congestion on any one part of the network, and also prevents single points of failure.
8/
- Multiple solutions can help reduce the overall congestion on any one part of the network, and also prevents single points of failure.
8/
Why are so many scaling solutions needed?
- The whole is greater than the sum of its parts. Different solutions can exist and work in harmony, allowing for an exponential effect on future transaction speed and throughput.
9/
- The whole is greater than the sum of its parts. Different solutions can exist and work in harmony, allowing for an exponential effect on future transaction speed and throughput.
9/
Why are so many scaling solutions needed?
- Not all solutions require utilizing the Ethereum consensus algorithm directly, and alternatives can offer benefits that would otherwise be difficult to obtain.
10/
- Not all solutions require utilizing the Ethereum consensus algorithm directly, and alternatives can offer benefits that would otherwise be difficult to obtain.
10/
Final Note:
MOST people use the term "Layer 2" to refer to ALL off-chain scaling solutions.
It is important differentiate "Layer 2", which derives its security through layer 1 Mainnet consensus (roll-ups & state channels), from Sidechains and Plasma Chains.
11/ Hoot Hoot 🦉
MOST people use the term "Layer 2" to refer to ALL off-chain scaling solutions.
It is important differentiate "Layer 2", which derives its security through layer 1 Mainnet consensus (roll-ups & state channels), from Sidechains and Plasma Chains.
11/ Hoot Hoot 🦉
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