Opinion of: Jay Jog, co -founder of Sei Labs
When Cryptokitties crashed the Ethereum network in 2017, the industry learned a tough lesson on the scalability of blockchain. Today, this lesson is more relevant than ever before, with over $ 100 billion in decentralized financial resources (Defi) and tens of millions of non-fungibel tokens (NFTS). The Ethereum Virtual Machine (EVM) – the engine that supplies this activity – reaches its limits.
So far, the response from the KRYPTO community have been the solutions of Layer 2 – separate chains that process transactions and report back to Ethereum. But what if the community was searching for answers within the mistaken place?
Layer 2s aren’t the answer
Layer -2 blockchains have long been advertised as an answer for the performance challenges of the EVM, since they’ll unload the etherus' arithmetic work right into a secondary chain. Layer 2 solutions have proven to be nothing greater than a “quick solution” as a substitute of a everlasting solution, as many hoped. As Gemini reported, a brand new layer 2 every 19 days appeared in 2024, which indicates that the competitive landscape causes more problems as a substitute of solving them.
Solutions in layer 2 are equipped with their very own challenges, that are mainly sure by centralization and interoperability. Many of today's Layer 2 blockchains run with centralized sequencers that would expose the network of transaction scensorship, transaction records and far more. In addition, Vitalik Buterin said in a recent blog post that Layer has difficulties to keep up interoperability. This drew attention to the unorganized state of layer 2, which continues to contribute to liquidity fragmentation and a fancy user experience.
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Advanced Rollup designs have tried to repair these pain points. Recently there was a brand new design called Native Rollups that tries to resolve the centralization problems of Layer 2. Native rollups remove the worth of projects, which is considerably deteriorating. As a result, it’s doubtful that local rollups are the reply to all urgent problems of Ethereum.
Why must you depend on layer 2 with as many challenges because the EVM as a substitute of looking elsewhere? Could there be a greater solution? According to L2Beat, it costs around 95.53 million US dollars annually to operate all large L2s. If you spend more cash for the structure and running of more L2S and interoperability solutions, must you think about refining the prevailing basic layer?
A more precise alternative to TPS
In order to create essentially the most powerful layer 1, the industry must first reassess the approach to pursuing the blockchain performance. Most blockchains concentrate on throughput using transactions per second (TPS) to check the chain performance. Many argue that reaching essentially the most significant transactions per second is the technique to enable the mainstream acceptance for crypto, but allows TPS to check comparisons of apples, since different transactions require different amounts of calculation.
For example, an Ether (ETH) tracking requires 21,000 gas units, while an ERC 20 transmission needs 65,000, which confirms that TPS doesn’t provide any value when pursuing mass transactions and within the event of network throughput.
A brand new standardized power metric, which reflects higher network computer functions, have to be developed to know the total potential of a blockchain. An alternative performance metric is created here, which is known as “gas per second” – a measure during which the gas fees required for the processing of transactions are evaluated and different transaction types higher reflect. While TPS is best used to evaluate easy ETH transmissions, gas shows the larger picture per second by taking all computing effort into consideration for complex transactions.
In view of the novelty of this metric, measuring gas per second in all chains will likely be a protracted process, but a decisive step in the event of blockchain.
Back to the fundamentals: layer 1s
The ability of layer 1S was historically neglected because many Ethereum researchers focused on a roll-up-centered roadmap. As a backbone of your entire crypto ecosystem, layer 1 is the important thing to scaling the EVM. In order to resolve EVM's scalability, Layer 1S have to be rebuilt from scratch with the reconstruction of the EVM.
The EVM is pending with a robust network overload and high gas prices with increasing volume. It is time that Layer 1S is scaled the subsequent generation of users on board. Approaches comparable to the parallelization will help to enhance throughput and, together with the consensus mechanism and the EVM storage solutions, to find out a brand new performance standard for the industry and to create a developer -friendly environment for projects.
The right solution for scaling the EVM
In recent years, layer 2s have been presented in response to the most affordable and fastest technique to perform transactions. Layer 2s aren’t what the EVM really needs. From the primary day on, layer 1 was at all times the true solution to the EVM's scalability problem.
It is time to distract open to more precise metrics and a spotlight to the advance of network performance. These changes will pave the best way for EVM to realize their highest potential and to incorporate scalability and efficiency which have never been seen before. The EVM is here to remain, but its future is dependent upon the industry to accumulate.
Opinion of: Jay Jog, co -founder of SEI Labs.
This article serves general information purposes and mustn’t be thought to be legal or investment advice. The views, thoughts and opinions which can be expressed listed below are solely that of the creator and don’t necessarily reflect the views and opinions of cointelegraph or don’t necessarily represent them.
