Vitalik Buterin Celebrates Ethereum Layer 2 Scaling; Only ‘Refinement & Deployment’ Left
LRC token jumped 14% today to trade at $0.054.
In 2020 so far the 97th largest cryptocurrency recorded 144% gains but despite that, it is still down 98% from its all-time high.
The ongoing gains have been the result of the monthly update released by the team that the Loopring Exchange has settled over one million trades. Since its launch two months ago, it has traded $14 million in volume through only 1,600+ users.
The most interesting piece of information is that the exchange only paid about 50 ETH for this which means each trade cost only $0.1, thanks to zkRollup.
Zero-knowledge proof (zkRollup) is deployed for layer 2 that increases scalability by processing mass transfer into a single transaction.
“We believe Loopring Exchange and Loopring Pay will become the killer features in our mobile app.
Our users will not be restricted by Ethereum’s ever-rising gas price and congestion, but still enjoy Ethereum’s security guarantees and everything else it offers.”
Loopring Pay, a zkSNARK-based layer-2 fast transfer service is to be released this week for an invite-only beta testing for Loopring Wallet.
It will enable its users to transfer Ether and ERC20 tokens without on-chain Ethereum transactions or gas fees. The transfer fees are reportedly “negligible” thanks to zkRollup. It will also be integrated into Loopring Wallet.
“This is sorely needed on Ethereum right now, as transfers of stablecoins, especially USDT, are among the biggest gas guzzlers,” reads the update.
Interestingly, today, Bitfinex also announced the largest stablecoin by market cap Tether will be integrated into the OMG Network (formerly known as OmiseGo) which will reduce transaction confirmation time and fees because Ethereum is “vulnerable to severe network congestion” under heavy demand.
Ethereum network is already over 90% at capacity and throughout May, it has also been experiencing a very high gas price. Not to mention, ETH 2.0 is still nowhere near its release.
But Ethereum co-founder Viatlik Buterin took to Twitter to shout out to the likes of Loopring, Matic Network, Omise Network, and others that are working on Ethereum’s L2 scaling.
Matic Network’s mainnet is now live with an initial set of validators. The mainnet has also already produced over 43,000 blocks.
Genesis file creation is now complete 🎉
Happy to announce that the network go live processes are going great.
The final network deployment starts from tomorrow ⏳
— Matic (@maticnetwork) May 29, 2020
“While everyone wasn't looking, the initial deployment of ethereum's layer 2 scaling strategy has *basically* succeeded. What's left is refinement and deployment,” Buterin said.
Although these systems are by and large limited to payments and DEX, these sections are a large part of Ethereum activity.
As for moving these into rollups and plasmas, there is an adoption challenge as it would require the users to have wallets where their coins are stored in either of them. He said,
“Look forward to the future of ethereum scaling! (Including sharding supercharging all of these techniques 100x further down the line).”