Ethereum’s final aim is to evolve right into a community able to dealing with substantial transaction volumes and internet hosting real-world purposes whereas overcoming the challenges posed by the blockchain trilemma.
The community’s transition to a Proof-of-Stake (PoS) consensus mechanism throughout the Merge is a big stride in direction of this utopia of accomplishing full scalability. Although the Ethereum Basis has charted a course for this future developments, Layer 2 options have emerged because the optimum means to offer the infrastructure that enhances Ethereum’s usability for each builders and customers. These options excel in reaching strong transaction throughput and assuaging community congestion and gasoline charges.
Vitalik Buterin, Ethereum’s co-founder, emphasised the importance of Layer 2 options in Ethereum’s future in an announcement he made in 2021.
“The Ethereum ecosystem is all-in on rollups as a scaling technique for the close to and mid-term future… optimistic rollups, that are easier and simpler to construct, are more likely to be most popular within the short-term,” Buterin said.
Effectively-established Layer 2 options like Arbitrum and Optimism have successfully demonstrated the effectivity of those applied sciences in scaling the Ethereum community. Alternatively, newer networks like zkSync Period and Polygon zkEVM introduce extra streamlined scaling strategies.
This text compares six Ethereum Layer 2 options—StarkEx, Starknet, Arbitrum, Optimism, zkSync, and Polygon—and the way they uniquely scale the Ethereum community.
These Layer 2 options have been chosen based mostly on their scaling know-how, recognition amongst customers and builders, in addition to their transactions per second (TPS) in comparison with the Ethereum community.
Let’s dive straight in!
StarkEx
StarkEx is an application-specific Ethereum scaling resolution designed to amplify transaction velocity and curtail prices for built-in dApps. It’s an enterprise-based service tailor-made to align with the distinct necessities of dApps deployed on it.
StarkEx launched its mainnet in June 2020 and is below the administration of the StarkWare crew. The platform hosts well-liked dApps reminiscent of Sorare, Immutable X, and dYdX.
StarkEx makes Ethereum extra environment friendly by consolidating many transactions into one batch. It makes use of a know-how known as zero-knowledge rollup which offers mathematical proof that the transactions are legitimate. That is significantly useful for purposes that have to course of a whole lot of transactions rapidly.
StarkEx can course of between 15,000 to 50,000 transactions per second (tps), relying on the necessities of every particular software. The platform has processed over $1 trillion in cumulative buying and selling and has $525 million locked into its ecosystem.
Starknet
Starknet was additionally designed by the StarkWare crew, and launched its alpha mainnet in November 2021. Not like StarkEx, it isn’t managed by the StarkWare crew. Starknet is a permissionless Ethereum Layer 2 scaling resolution, functioning in a decentralized method just like public networks like Ethereum.
Starknet reduces gasoline prices and improves consumer expertise on Ethereum utilizing the zero-knowledge (zk) know-how. It makes use of a local programming language known as Cairo. Starknet is EVM-compatible, and allows Ethereum builders to deploy their good contracts usually by way of transpiler—a program that converts Ethereum good contracts right into a format appropriate with Starknet.
A standout attribute of the protocol is its assist for account abstraction. This operate permits customers to make use of a wise contract to handle their accounts.
Starknet plans to transition to utilizing its personal token, STRK, for settling gasoline charges as a substitute of Ethereum’s Ether (ETH).
The full worth locked (TVL) within the Starknet ecosystem at present stands at $26.19 million.
Arbitrum
Arbitrum, launched in August 2021, is a widely known Layer 2 resolution inside Ethereum’s Layer 2 panorama. The community at present boasts the best Whole Worth Locked (TVL).
Arbitrum operates utilizing optimistic rollup know-how, one other sort of rollup resolution. It aggregates quite a few transactions right into a singular batch that’s then verified immediately on the Ethereum chain. The platform can deal with a formidable 40,000 transactions per second (tps).
The Arbitrum ecosystem includes two main protocols: Arbitrum One and Arbitrum Nova. Whereas Arbitrum One fits normal blockchain use circumstances, Arbitrum Nova focuses on serving blockchain-based gaming and Web3 social networks.
Notably, Arbitrum Nova introduces creative design components and language options to reinforce scalability and effectivity.
On the core of the community lies its native token, ARB. ARB grants holders governance rights and permits them to affect its growth course. Nevertheless, the token doesn’t change Ether (ETH) for gasoline payment funds.
Optimism
Optimism launched its alpha mainnet in January 2021. It additionally leverages optimistic rollup know-how to scale the Ethereum community.
Initially developed as EMV-compatible, Optimism has undergone iterations to turn into an EVM-equivalent protocol. Now builders can use Ethereum-based code with out making adjustments to the core code. This fashion, Optimism immediately leverages Ethereum’s safety features.
Whereas Ethereum solely processes about 15 to twenty transactions per second (tps), Optimism can actively course of as much as 2,000 transactions inside the similar time-frame.
Optimism additionally has a local token, OP. OP holders can actively take part in on-chain voting for protocol choices. Just like Arbitrum’s ARB, the OP token just isn’t used for paying gasoline charges.
zkSync
zkSync
zkSync was constructed with the zk-rollup scaling know-how which permits it to deal with a excessive transaction quantity whereas benefiting from Ethereum’s strong safety. zkSync can course of a formidable 100,000 transactions per second (tps).
Past its transaction prowess, zkSync distinguishes itself with a variety of distinctive attributes. The platform provides seamless asset deposits and transfers by way of its atomic swaps characteristic.
One other characteristic is “gasless meta-transactions,” which eliminates the necessity to purchase and maintain a selected cryptocurrency like ETH for gasoline charges. The characteristic lets customers pay gasoline charges immediately with the token they ship. This user-centric method simplifies transactions and enhances the general consumer expertise.
zkSync includes two distinct protocols: zkSync Lite and zkSync Period. Whereas zkSync Lite excels in easy asset transfers and restricted dApp interplay, it lacks native good contract functionality. zkSync Period addresses this limitation. It empowers builders to deploy good contracts and work together inside a community akin to the Ethereum mainnet.
zkSync Period launched in March 2023 and at present has a complete worth locked (TVL) of over $147 million.
Polygon
Polygon is a set of protocols designed to reinforce Ethereum’s usability by offering quite a lot of scaling options. It stands out as a pioneering and extensively embraced complete scaling resolution for Ethereum.
Initially launched as Matic earlier than rebranding in 2017, Polygon has developed standout options, together with Polygon PoS and Polygon zkEVM.
Polygon’s preliminary product, now known as the Polygon PoS (Proof-of-Stake) community, is EVM-compatible however just isn’t a direct Ethereum-equivalent chain. In distinction, its newest product, Polygon zkEVM, leverages zk-rollup know-how and provides a trustworthy reproduction of the Ethereum community.
To make transactions and canopy gasoline charges on the Polygon PoS community, you have to have MATIC, the native token of Polygon. Alternatively, if you wish to pay for gasoline on the Polygon zkEVM community, you have to a type of Ether (ETH). Nevertheless, Polygon’s crew has put forth a proposal to undertake a recent native token named POL. They goal to reinforce the safety of their numerous options and streamline transactions utilizing this new token.
The Polygon PoS boasts a formidable throughput of as much as 65,000 transactions per second, whereas Polygon zkEVM can at present deal with as much as 2,000 transactions per second.
Polygon PoS and Polygon zkEVM have purposes throughout numerous dApps, together with decentralized finance (DeFi), non-fungible tokens (NFTs), and gaming.
On the time of writing, the Polygon PoS community boasts a Whole Worth Locked (TVL) of $904 million, whereas Polygon zkEVM has amassed a TVL of over $31 million since its launch in March 2023.
Evaluating the Specs of Ethereum’s Layer 2 Options
We’ve got compiled the desk beneath that can assist you see at a look the similarities and variations between these Layer 2 options.
Desk: Comparability of Main Ethereum Layer 2 Options
Which Layer 2 Scaling Resolution is the Greatest?
The “finest” Layer 2 scaling resolution is one which immediately suits your use case and satisfies all the necessities for effectiveness and effectivity.
Every Layer 2 resolution has its distinctive strengths and trade-offs. That’s why it’s essential to assess their options, limitations, group assist, real-world adoption, and different pertinent elements earlier than figuring out essentially the most appropriate Layer 2 scaling resolution to your particular mission or software.
You must take into account elements like transaction velocity, price, safety, compatibility with present infrastructure, implementation complexity, and particular use case wants. By doing an intensive evaluation, you can also make the only option to your Layer 2 scaling wants.
Disclaimer: This text is meant solely for informational functions and shouldn’t be thought-about buying and selling or funding recommendation. Nothing herein ought to be construed as monetary, authorized, or tax recommendation. Buying and selling or investing in cryptocurrencies carries a substantial danger of monetary loss. At all times conduct due diligence.
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