New Blockchain Tech Promises To Ease Ethereum's Growing Pains (bloomberg.com) 17
New technology promising to solve Ethereum's growing pains is gaining traction, increasing bets that some day most of the network's transactions might not actually take place on its own blockchain. From a report: For years slow speeds and high transaction fees have plagued the network underpinning the $550 billion cryptocurrency Ether -- home to the most popular blockchain applications. Its weaknesses have allowed new competitors such as Solana and Avalanche to gain ground. However, help from so-called Layer 2 technologies, or rollups, could be a solution. Digital ledgers like Ethereum are designed to slow down and become more expensive as their popularity increases. But these Layer 2 projects, many of which have only recently debuted, can effectively take transaction data off Ethereum, compress it and post it back onto the original chain for a fraction of the time and cost. So far the the user base is relatively small. But rapid growth is raising expectations that Ethereum will not only be able to ward off competition but that other blockchains might adopt similar scaling solutions. If the technology takes off, networks like Ethereum might only be directly used for very large transactions in the future, with the bulk of activity happening on Layer 2 networks.
Name dropping (Score:1)
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Wut?
AFAIK only Polygon is a layer 2 for Ethereum.
Polkadot is its own layer 1 blockchain network.
Chainlink is an oracle for blockchains.
Uniswap is a governance token for the Uniswap ecosystem of decentralized apps (Dapps).
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Polygon is not a true layer 2 either. It is it's own separate blockchain with it's own security. What happens on Polygon stays on Polygon. Assets need to be bridged.
For true layer 2, you need to be looking at rollups, Optimism, Arbitrum, Boba, Cartesi, Loopring, Starkware.
These allow transaction execution to take place off of the main layer 1 chain but post data to the main chain. This gives the security and robustness off the main Ethereum chain but the speed and low cost of transaction on a side chain.
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That's an artificial inflation bubble. (Score:2)
...designed to slow down and become more expensive as their popularity increases... But... take transaction data off Ethereum, compress it and post it back onto the original chain for a fraction of the time and cost.
Soo... Defective by design artificial deflation is being fought by artificially created external system which is designed to speed up and make cheaper the cost of spending the "currency".
Thus promoting spending i.e. pumping the money into the system.
Not by decreasing prices of purchased items through efficiencies in production and sales, but by decreasing artificial price of transactions.
Pulling the "money" out of the system in order to pump it back in, to reign in that defective by design artificial defla
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And no actual value will be added or created.
CO2 and the heat produced in "mining" doesn't count as value.
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Agreed. All the 'chain systems seem to be designed to increase monetary friction the more folks use them. At some point the entire chain will freeze up and no one can use it. When that occurs the entire value proposition ceases to exist making all of it worthless.
The creation of 'currency' was done to provide a standard rate of exchange and convenience for the buying and selling of goods and services. It reduced friction.
At one point, Visa, MC, AMEX, Diners Club Int., Discover, etc. were created to redu
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I agree with a poster from another thread... DeFi is not Decentralized Finance - it's Deregulated Finance. There's a reason that this stuff is and should continue to be regulated. By definition, currency===money===value. And as one of the oldest professions, thieves will thieve, and scammers will scam.
Let tell you this one weird trick to avoid being scammed by bitcoiners. Try it and you'll see! Just one step you have to take and you'll be safe from the horribleness of deregulation, scammers and so on! Billions have tried that and confirm it works!
Ready? Here it is, how to avoid using bitcoin in one easy step:
1. Do not use bitcon.
Not that fing hard, is it?
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IMHO Cardano has an edge in the blockchain world, especially over Ethereum, because of Hydra and local state. Basically in the Ethereum world, everything is global. It's like you are trying to write a multi-threaded application in which every single variable has global access. If that sounds like a mess, it's because it is, and therefore sometimes you have things like contention and timing problems which causes transactions to fail (but you still payed the transaction cost).
Something like this can't happen
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IMHO Cardano has an edge in the blockchain world, especially over Ethereum, because of Hydra and local state.
This is the right area to watch, but I feel like you and I don't know enough to state a conclusion. Like I said, there are at least three different reasonable ways to implement L2, Hydra is only one of them, and nobody has proven an L2 that can handle complicated contracts (at least not that I know of).
Like I said, it's telling (but not necessarily decisive) that Tezos and Ethereum both have working domain name systems running on their L1 contracts. Cardano has only promises. I think a domain registrar i
Quick Q (Score:1)
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That would be Cosmos.
Decentralized ledgers are slooow for every use... (Score:2)
...so, we're now reinventing banks.
It's sad to watch this all unfold in real time.
On Ethereum (Score:2)
A long Twitter thread on Ethereum, mostly centred on the PoS switch:
https://twitter.com/hugohanoi/... [twitter.com]
You could say a lot more.