The DeFi hype seems to have come to normal and the cost of Ethereum Transaction Fees has fallen down by 82%.
Vitalik Buterin, Ethereum Co-Founder had to state that his new proposal could make high fees on the network a thing of the past.
Vitalik Buterin recently tweeted: “So it’s not “rollups instead of sharding”, it’s “rollups on top of sharding”. That said, rollups are already here or coming soon even before sharding, and rollups without sharding still offer that 100x increase in throughput. So get on a rollup today!”
For those who do not know, Rollup is a scaling technique used to store the transaction data on-chain in a compressed form; however, computation part is done off-chain.
Sharding does the job of dividing the blockchain’s nodes into smaller groups, termed as ‘shards. As opposed to validating the same transactions at the same time, different shards tend to validate different sets of transactions, thus, increasing the numbers of transactions which can be processed per second.
Chris Burniske tweeted “The Ethereum ecosystem is likely to be all-in on rollups (plus some plasma and channels) as a scaling strategy for the near and mid-term future.”
Further Chris stated, the question now is on which rollup will be used and where. The long-term and short-term benefits are detailed at Ethereum Magicians.
Sydney Ifergan, the crypto expert tweeted: “If the net result of all of these developments on Rollups and Sharding is Reduction in Gas fees – Transaction Fees on Ethereum (ETH) network, that is what all are looking for. I love it happening.”
Year 2020 for Ethereum has lot of interesting things happening in the Eth 1 and Eth 2. Decentralized finance (DeFi) is all the talks in Eth 1. Eth 2.0 Phase 0 is coming to a matured stage. Several Eth 2.0 clients and multiple testnets are ready to roll out in the coming months and there is lot to look forward to from the network.
Ethereum (ETH) Financial Innovation
Ethereum Network according to many is evolving to be the frontier in Financial Innovation. Ethereum has made it possible for lot of financial experimentation to take place on the network which in turn has gotten matured in to consumer products. DeFi is becoming mature. There are more than 4.5 billion DeFi users already. Ethereum is making a low cost developer sandbox possible. More of interesting concepts are coming and developers are seriously doing their best to bring out the best possible products to users. Thus, adding to usability.
