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Monday, May 29, 2023

After Rollups Ethereum Might Become Cheaper

Rollups might finally solve the scalability problem of Ethereum. On the other hand, it needs the trust and reliance on others who are doing the task of keeping a check on ETH.

The blockchain of Ethereum has been going through the issue of scalability for the past few years. The cryptocurrency had been suffering due to their own success and the network is now witnessing a mere 15 transactions in each second. On top of this slow pace, each transaction costs more than $20.

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Ethereum Trying For Cost-Cuts With Rollup

The bottleneck of the high transaction cost of Ethereum is preventing their network from improving as well as giving several developers enough problems to try other networks. Avalanche and Polkadot are big competitors of ETH that are offering several thousand transactions per second in negligible fees. In case ETH fails to address and rectify their problems soon, their competitors will attract all their users gradually.

Rollup is one solution for ETH because the reason that technology is enabled is to roll up the transactions as well as fit them within one block. As a result, the congestion in the network will be cleared away and make them faster as well as cheaper. Eventually, the ETH network will be growing at an exponentially fast pace.

Vitalik Buterin, the ETH creator, mentioned last week that they are working on solving their scalability issues that are sure to increase the speed of transactions by 4x times. Eric Wall, Arcane Assets CIO, mentioned that rollups allow 2,000 to 3,000 each second speed enhancement.

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However, rollups need to be monitored that might disturb the accounts and balances in the smart contracts.

Sharding will also help reduce the scalability problem in ETH 2.0 blockchain. However, these methods will take many years to be implemented and completed.

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