Ethereum’s Sister Chain Is Getting Hot as the Second-Largest Network Becomes a Whale Game
Ethereum’s Sister Chain Is Getting Hot as Second-Largest Network Becomes a Whale Game In the past month. The Ethereum fees have skyrocketed as DeFi protocols and ‘yield farming’ platforms gained extensive popularity. Just this week, the Ethereum network faced congestion of an extreme level never seen before.
On Wednesday, with the launch of the much-anticipated UNI governance token of Uniswap, the second-largest network saw a spike in daily transaction fees. The daily Ethereum’s average fees went as high as $11.61, marking the highest fee hike since the SUSHI saga earlier this month.
What this means is, the network has become almost impossible for small market participants to enjoy. Instead, it has become a whale game.
“While the smaller and less efficient market participants may be struggling, the larger firms that can capitalize on inefficiencies,” said Denis Vinokourov of Bequant.
This has brought the solutions like zk-Rollups and the sister chain of Ethereum xDai in the limelight.
True Defender of Ethereum’s Value Proposition
Gnosis, the prediction market firm, has already moved on to the Ethereum sidechain, xDai, which has been in operation for the last two years.
“To ensure high demand doesn’t mean low adoption, we’ve teamed up with xDai, an Ethereum sidechain designed for fast and inexpensive transactions, providing a developer-friendly environment that retains real-world economic incentives,” said Gnosis in its announcement about the partnership.
Just this week, data privacy and protection platform HOPR, P2P lending & marketplace EthicHub, Sablier, Ethereum-based privacy-focused multi-contract 0xMonero, prediction market Reality Cards, and The Commons Stack have joined Dai.
This proof-of-stake chain enables fast transactions for a minimal amount, just fractions of a penny. With stablecoin DAI as its core currency, the cost involved in these transactions is predictable and not highly volatile. In the case of xDai, users entrust their assets to a multi-sig controlled xDai bridge.
Being EVM compatible means any smart contract or Dapp deployed on Ethereum can also be deployed on xDai with minimal changes.
It is also planning to onboard a fiat-to-crypto option in the next quarter, which means one wouldn't’ have to interact with Ether at all.
“Ethereum little sister xdaichain is getting hot. XDAI is the true defender of Ethereum’s value proposition before a fully functional ETH 2.0, can easily K.O stuff like BSC (sorry @cz_binance),” tweeted Dovey Wan, founding partner at Primitive Crypto.
ETH 2.0 takes the First Step Towards Launch
ETH 2.0, meanwhile is ready for its first step towards launch after core developer Danny Ryan submitted, a proposal for its critical phase.
Ethereum co-founder and the creator of Cardano meanwhile, found Gasper to be “insecure.” “Discovered a liveness attack on Gasper in the standard synchronous model where messages can be delayed arbitrarily by the adversary up to a known network delay bound….” he said.
Dubbed “Serenity Phase 0,” this proposal is responsible for bringing about the PoS consensus mechanism. The PoS chain called “Beacon Chain” will be built alongside the existing network.
However, it is just the first step of the 6-phase launch extending well into 2022, while Phase 1 is expected to be rolled out next year.