Although Ethereum (ETH) is the most well-known cryptocurrency after Bitcoin (BTC), the network itself is not exactly user-friendly. For example, transactions on Ethereum are still relatively slow and quite expensive. A solution for this are so-called layer-2 networks.
These networks are based on Ethereum and can often process transactions many times faster and cheaper. Well-known examples are Polygon (MATIC), Arbitrum (ARB) and Optimism (OP). Yesterday Shiba Inu also started such a network called Shibarium. However, the co-founder of Solana (SOL) does not find any suitable solutions.
Solana Founder: Layer 2 networks are not the answer
According to Anatoly Yakovenko, CEO and co-founder of Layer 1 competitor Solana, the numerous Layer 2 networks are not a sustainable solution to solve Ethereum’s scalability problem. At least not in the long term. He shared his thoughts on the Lightspeed podcast.
According to Yakovenko, the existence of multiple Layer 2 networks results in a very “fragmented user base”. All Layer 2 networks function independently and in fact live a fairly isolated existence. To convert assets from one layer-2 to another, or to Ethereum itself, you need so-called bridges use. But this is also an expensive process.
Yakovenko believes that limiting the number of Layer 2 networks on Ethereum would solve the problem. Ideally, there would only be one Layer 2 network.
“So you have a layer 2 system with optimized bandwidth. That’s basically what Solana is all about. Solana can run all the programs itself.”
Is Ethereum Sharding the solution?
However, Ethereum has been working on a permanent solution to the scalability problem for some time. Use ‘sharding’ The Ethereum network should be able to process 100,000 transactions per second in the future. Currently, the Ethereum network processes fewer than twenty transactions per second. Sharding is a technique in which the blockchain is divided into several parallel blockchain branches.
However, when Ethereum will make this update is still unknown. Major developments are also regularly postponed. For example, the “merge”, the transition to the proof of stake, was constantly postponed. The Ethereum team has very high requirements and will only make an adjustment when it is sure that everything is working properly.