Vitalik Buterin communicates on Ethereum scalability
A race against time has been launched for Ethereum: the network created by Vitalik Buterin has to deal with its scalability problems quickly, or risk seeing ambitious competitors threaten it. Already, Binance Smart Chain has managed to attract the attention of developers and users tired of Ethereum’s extremely high transaction costs.
No doubt this is why Vitalik Buterin wanted to talk about second layer solutions (layer 2), which offer better scalability to the network. In an interview with Tim Ferris, he explains that for the Ethereum community, rollups are the most enthusiastic solution right now.
The rollups are located on a second outer layer at Ethereum. They allow transactions to be processed and stored on a sidechain, before clumping them together to record them all at once on the Ethereum blockchain. According to Vitalik Buterin, the interest of rollups is that they can support not only payments, but also smart contracts, a crucial asset for Ethereum.
A network that can become 100 times more scalable?
Vitalik Buterin notes that an implementation of rollups by Optimism will be launched in handnet soon, and it is on this one that he counts:
“Rollups are coming soon and we are confident that they will be enough and that by the time we need more scalability, the sharding will have already taken over. “
The creator of Ethereum explains that the scalability of the network will be 100 times better in the coming months, simply with rollups:
“If you have rollups, but no sharding, […] you still have the blockchain’s ability to process between 1000 and 4000 transactions per second, depending on their complexity. “
The arrival of rollups compatible with the Ethereum virtual machine (EVM) could indeed be crucial and allow the blockchain to save precious time. So far, Ethereum has extended its historic advantage over competitors — the network has been around since 2015. But that is no longer enough, and finding ancillary scalability solutions has become a priority.
Already, developers have agreed to a major change: the EIP-1559 will allow an overhaul of the network’s transaction fees, so that they become lower for users. It remains to be seen whether the second-layer solutions will also be efficient and used enough to help carry Ethereum until its necessary transition.
EIP-1559, a blessing for users, but not for miners
As a reminder, the EIP-1559 aims to reform the user fees of Ethereum . These had reached record highs in recent months, making small transactions very expensive, effectively preventing some applications from working best. The approval of the reform by developers last week was therefore welcomed by the majority of the community.
But some diehards see this change in a negative light. As is often the case, the reason is pecuniary: the incomes of miners in the Ethereum network have exploded in recent weeks, with rising prices and the influx of new users. However, EIP-1559 will have the logical effect of reducing the rewards of miners: they could lose up to half of their income. That is why there have been several voices against this change.
Miners get organized and plan a show of force
In a call relayed by Red Panda Mining, the disgruntled urge the miners to direct their hash power to the Ethermine mining pool, which is historically opposed to EIP-1559. The show of force will take place on April 1, and will last 51 hours.
Why 51 hours? Because some miners hope to collect more than 51% of the hashrate, a threshold at which they could make changes on the network. The action has “an educational purpose” according to Red Panda Mining, which says it’s not about actually taking control of Ethereum.
The maneuver may seem problematic, however, as it shows on the one hand the split that sometimes exists between developers and miners. On the other hand, it indicates that coordinated action can call into question the security of the network, if enough miners gather. See you on April 1st to see if the action will be followed or not…
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