Vitalik Buterin is providing updates on the roadmap for Ethereum 2.0, detailing plans to exponentially increase the scalability of the second-largest cryptocurrency.
The Ethereum co-founder says the leading smart contract protocol will rely on rollups to massively elevate the throughput of the leading smart contract platform by over 666,500%.
“Today, Ethereum has ~15 TPS (transactions per second). If everyone moves to rollups, we will soon have ~3000 TPS. Once phase 1 comes along and rollups move to eth2 sharded chains for their data storage, we go up to a theoretical max of ~100000 TPS… Eventually, phase 2 will come along, bringing eth2 sharded chains with native computations, which give us… ~1000-5000 TPS.
It seems very plausible to me that when phase 2 finally comes, essentially no one will care about it. Everyone will have already adapted to a rollup-centric world whether we like it or not, and by that point it will be easier to continue down that path than to try to bring everyone back to the base chain for no clear benefit and a 20-100x reduction in scalability.”
In a BlockTV interview, Buterin explains that rollups is a scaling method that enables Ethereum to keep compressed transactions on-chain while delegating computations such as contract execution off-chain.
Ethereum has been under scrutiny as of late due to its increasing network congestion and skyrocketing transaction fees. Crypto enthusiasts have expressed their dismay at the performance of the second-largest cryptocurrency as users flock in droves to Ethereum-based decentralized finance (DeFi) protocols.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Sergey Nivens
