Ethereum rescue: Vitalik Buterin expects timely scaling solution
The fact that the Ethereum Blockchain has a scaling problem is abundantly clear from the constantly high gas fees. However, Ethereum string-puller Vitalik Buterin sees light at the end of the tunnel.
The crypto revolution is eating its children: While small investors have made the Ethereum network what it is today over the years, they have recently been looking down the tube more and more often. At currently 14.71 US dollars (0.0081 ETH), the average gas fees are not exactly tailored to small wallet holdings. A situation that is only Bitcoin Rush expected to be resolved with the scaling solutions of the new Ethereum 2.0 network environment. However, since it could still be several years before the final conversion to the proof-of-stake procedure including sharding function, transitional solutions are needed that make the Ethereum Blockchain affordable again. Such a solution could be launched as early as a month from now.
A spark of optimism for Ethereum
Hopes are pinned on „Optimism“, a Layer 2 solution by the start-up of the same name that is fully compatible with the Ethereum Virtual Machine. The developers are focusing on so-called ZK rollups, i.e. „zero-knowledge procedures“ that transfer several transactions on a sidechain before they are bundled on the mainnet in one settlement. A similar procedure is also used in the Lightning Network for Bitcoin (more on this in the BTC-ECHO Academy). As Vitalik Buterin estimates in a podcast, this could already increase the performance of the Ethereum blockchain by a factor of 100.
According to this, the Layer 2 solution could increase the transaction throughput „to 1,000 to 4,000 transactions per second“, „depending on how complex these transactions are“. By comparison, Ethereum currently manages only 11 to 16 transactions per second, according to on-chain data aggregator Blockchair. According to Ethereum.org, however, the network „needs to support thousands of transactions per second to make applications faster and cheaper“. So the knot will probably only finally burst with Ethereum 2.0, which should ultimately be able to handle 100,000 transactions. But until then, optimism could be a remedy.
According to Buterin, investors will not have to wait too much longer for the interim solution. According to him, a functional solution can be expected „in about a month“ that will make the scaling problem a thing of the past, at least in the medium term. According to the Ethereum mastermind: „Rollups are coming very soon, and we are confident that by the time we need further scaling, the sharding will have been ready for a long time“. So – although Ethereum 2.0 remains a long time coming – fee sharding could soon be a thing of the past. Other solutions, such as the rollup Arbitrum developed by Offchainlabs, also give hope that gas fees will return to normal in the future.