Ethereum 2.0 Will It Kill Layer 2 Tokens Like Polygon?
Ethereum 2.0 Will It Kill Layer 2 Tokens Like Polygon?
Ethereum 2.0 will be coming even though it was talked about back in 2017 we are finally after all of this time getting closer to a real possible roll out of it. The most recent update EIP-1559 London hard fork introduced a base fee token burn which has already burned over 100,000 Ethereum worth roughly 300 million dollars in ETH burned.
Over the course of the next year a few more updates will happen to the platform which are geared to prepare it for the introduction of Proof of Stake some time in the summer of 2022 (knowing how these things go though and already current delays I'm honestly not expecting it to be rolled out till early 2023 at the earliest. The official launch date so far though is summer 2022 (originally end of 2021)
Layer Two Polygon
Like many layer two solutions at the moment they are geared towards helping solve the slower speeds of the blocks on Ethereum and also the higher fees that come with it.
While not horrible at the moment coming in at roughly $5 a transaction there was once a time it cost $50+. Still $5 per transaction is still a lot of money especially when it's a smaller ticket transaction.
This still gives platforms like Polygon validity. But what happens when Ethereum does fix their high transaction fee issue? Will Polygon and other layer 2 solutions like it die out?
Will Polygon Die Out?
While some might if they don't have alternative plans Polygon however seems to be building into getting ready for when Ethereum 2.0 releases while still providing high quality low fee systems for Ethereum while prices are high.
One of the big changes for scalability for Ethereum will be when sharding rolls out. This allows Ethereum to split things up so that the network can be broken up and focus on certain things. For example one shard would do on-chain transactions for gaming.
This change should take Ethereum from 15 transactions per second to 3,000 transactions per second. Put that into comparison for a very popular payment method credit cards Visa itself handles roughly 1,700 transactions per second which means this new Ethereum update rather capable. However because of the complexity and more things being transacted than just dollar value such as NFTs this number will most likely be higher.
As we can see this solution makes Ethereum very capable again to handle more transactions at a much lower cost.
What Polygon Is Doing
Polygon has three core systems it is now working on and quickly working towards wanting to roll them out. Those are...
- Optimistic Rollups
- ZK-rollups
- Validum Chains
ZK-rollups are bundled transactions that are sent to the chain later. Validum chains offer up fraud proofs which have a challenge period on the Ethereum blockchain which allows them to be disputed.
ZK-rollups is part of the merge with Hermez which is a open source scaling project for 250million deal earlier this month.
These three things are actually a HUGE boon to the Polygon blockchain if they can for one be done fast enough and two Vitalik Buterin (creator of Ethereum) moves forward with them to integrate plasma, optimistic rollups and zk-rollups.
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