The post Ethereum’s next phase – Buterin proposes new scalability strategy appeared on BitcoinEthereumNews.com.

Ethereum’s Layer 2 solutions enhance scalability and reduce transaction costs Blob transactions are vital for scaling Ethereum and supporting millions of users In his latest blog post, Vitalik Buterin reignited the conversation around Ethereum’s [ETH] scalability, offering fresh insights into how the network can evolve to maintain its dominance in the blockchain ecosystem. With Ethereum’s growth hitting a bit of a plateau recently, Buterin stressed on the urgency of embracing Ethereum’s Layer 2 solutions more fully. Both to enhance the market value of ETH and to solidify its critical role in the wider blockchain economy. Here, it’s worth pointing out that his proposal came just days after Buterin announced significant changes in the Ethereum Foundation. Hence, this could be a pivotal moment for the network as it seeks to adapt and thrive in an increasingly competitive space. Ethereum – Reaching the limits of layer 1 Ethereum has grown significantly, but scalability remains a major issue for it. High transaction fees and congestion have plagued the network, with Vitalik Buterin noting that while Layer 1 has matured, it can’t meet the demands of decentralized applications. He emphasized that “L2 scaling is working,” with Layer 2 protocols increasing transaction capacity by 17x and reducing fees. However, challenges like scaling blobs and L2 heterogeneity remain. To overcome these, Ethereum must innovate both technically and socially, further integrating ETH into Layer 2 solutions. What is Buterin proposing? Vitalik Buterin has now presented a strategy for improving Ethereum’s scalability, one that involves deeper integration of ETH into Layer 2 protocols. He noted that L2s should embrace ETH as their “primary collateral” to strengthen the Ethereum ecosystem. According to him, L2 networks should burn or stake a portion of their gas fees, which would create additional demand for ETH and reinforce its deflationary characteristics. He also…

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Filed under: News - @ January 25, 2025 10:20 am