In his speech on the Tim Ferris Show podcast, the creator of Ethereum, Vitalik Buterin Rollups, singled out as a “really powerful” scaling solution. It will help the smart contract platform stay ahead of its ETH 2 upgrade.
Buterin argued that Rollups could be a solution to Ethereum’s current scaling problems. At least until the introduction of sharding technology in Ethereum 2.0.
Ethereum transaction fees hit record highs earlier this year. Therefore, the debate about network scalability is heating up again. As of today, the average cost to send ETH is around $ 16. That’s significantly less than the $ 38 we paid last month. But still a significant amount of money for a cryptocurrency transaction, which should be fast and cheap.
Vitalik Buterin Rollups: Fixing Ethereum Scalability Issue
Sharding is touted as the most promising solution to Ethereum’s scalability problems. But this will not happen soon. This technology breaks down large amounts of data into smaller pieces and was developed for ETH 2.0. It will be used on the Ethereum proof-of-stake blockchain. This means that one more solution must be found before the transition from the current proof-of work chain can be completed.
One such solution is Rollups, a level 2 method for aggregating transactions within smart contracts. The accumulation packages aimed at reducing fees and network congestion are theoretically capable of increasing the platform’s throughput from the current 15 t / s to more than 1000 t / s.
The concept, first described by Vitalik Buterin in 2014 and originally called “shadow chains”, has two main approaches:
- optimistic Rollups.
The latter is increasingly becoming the preferred choice among developers of decentralized finance (DeFi) applications. Moreover, projects such as Synthetix Exchange and Polygon (formerly known as Matic Network) are already implementing this solution.
Speaking on the Tim Ferris show, Buterin noted that the Optimizm team will release Rollups “very soon.” And in the medium term, it will help the Ethereum blockchain scale 100 times. While sharding is preparing for implementation.
“If you have roll-ups but don’t have sharding, you still have 100x factor scaling,” Buterin said. “You still have the ability for blockchain to do anywhere from 1,000 to 4,000 transactions per second. Depending on how complex these transactions are. “