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Wednesday, January 25, 2023

Vitalik Buterin proposes to transfer NFT from Ethereum to L2 solution

Cryptomillionaire and one of Ethereum (ETH) co-founders Vitalik Buterin shared on Twitter the idea of ​​moving the non-fungible token (NFT) ecosystem to a secondary Layer 2 (L2) protocol. According to him, this should help reduce gas consumption and commissions on the Ethereum mainnet.

As Solana strives to achieve transaction speeds and fees hitherto inaccessible to the second most capitalized cryptocurrency, one of ETH’s co-founders, Vitalik Buterin, struggles to find a capable solution, at least to long term, to make the network that he created function properly.

Layer 2 to reduce costs

According to Buterin, an organized transfer of the NFT ecosystem to Layer 2 would significantly reduce the commission in Ethereum. 

L2 is a secondary protocol built on top of an existing blockchain system. To put it simply, we are talking about a mechanism for scaling the Ethereum network that was not originally built into its structure. (Also Read: Solana (SOL) Price Prediction: Ripple left behind, Solana in the fast lane)

“We need to scale NFT to the L2 ecosystem to reduce costs. However, to do it “correctly” requires good standards of portability between platforms, so that the ecosystem is not tied to the particular L2, ” Buterin said.

Significant disadvantages 

To remedy the situation, according to the ETH co-founder, the transition from NFT to a single platform needs to be coordinated, but even this solution has significant drawbacks:

“All suitable Ethereum Virtual Machine (EVM) platforms have backdoors and centralized sequence management. It is therefore too risky to link an entire ecosystem of non-fungible tokens to just one of these platforms.

No part of the NFT ecosystem, or even the entire NFT ecosystem, is a closed world; they will have to interact with other parts of Ethereum. ”

In an attempt to find a solution to the problem and make Ethereum work, Vitalik Buterin wrote an article in which he shared his already ready solutions with the community. (Also Read: After El Salvador, Ukraine to legalize Bitcoin (BTC), price forecast 2021)

Users quickly joined the conversation and even offered the crypto billionaire their own solutions to network problems. So it is possible that very soon we will see another big Ethereum leap. Both technically and in terms of price.

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