Want to improve blockchain infrastructure? Work under layer-to-solution

There has been a lot of talk about how blockchain unlocks endless enterprise opportunities. And although all these rumors have not been fully translated into practical results, the explosion of decentralized money and non-fungible tokens (NFT) markets has identified what can be achieved and how blockchain can affect even the most conservative industries.

So unlike two to four years ago, developers, entrepreneurs and businessmen are not just blindly joining the bandwagon. There is nothing left now about what blockchain can do. The questions now being asked revolve around how technology can be best used for best results. Therefore, blockchain has gradually evolved from a buzzword to mainstream acceptable technology. If it does not indicate actual growth and development, what does it do?

Related: Blockchain technology can change the world, not just through crypto

However, this does not mean that it has been a smooth vessel so far. Ever since we began to see blockchain as a sustainable technology for accessing mainstream applications, blockchain throughput performance, especially those that have been widely accepted, has come under intense scrutiny. Understandably, scalability remains a criterion for judging the readiness of blockchain networks to accept enterprise applications.

Using Ethereum as a case study, it is safe to say that many Ethereum users have dealt with the downsides of obsolete blockchain infrastructure. From my experience, high transaction fees as a result of network traffic jams break a potential contract for retail investors. For the average user, there is no way to justify paying up to 70 70 as a fee for running a single transaction that may not even be worth more than 100 100.

Significantly, Etherium’s inability to scale accordingly, albeit somewhat, has hampered the establishment of the DFI and NFT sectors, forcing retail investors and traders interested in conducting low-value transactions to often look out of sidelines. Even Vitalic Butarin recently acknowledged the severity of the situation, noting that the current scaling and fee system is sustainable if the goal is to enrich social network projects run by NFTs enriched in the etherium network.

And so, the question is: How have blockchain developers responded to this recurring issue?

Is layer one ever enough?

I believe that the ultimate goal is to solve the blockchain trilogy, finding a balance between decentralization, security and scalability. Not often, blockchain has to abandon one of these three features. In most legacy blockchains, including Bitcoin and Ethereum, infrastructural design has taken the measure of abandonment for security and decentralization.

It must be said that Bitcoin and Ethereum are the two most popular blockchains simply because they are not the first of their kind, as they have reasonably established themselves as the most decentralized and secure blockchain network. In short, their lack of scalability meets the needs of other key blockchains. While this was sufficient in the first years of their operation, the flow of blockchain applications has certainly put a lot of pressure on the Layer 1 chain to develop and incorporate scalability-centric infrastructure.

Related: Where is the future of DFI: Etherium or Bitcoin? Experts answer

While it is much easier for new blockchains to adapt to scalable infrastructure from the beginning, it is much more difficult for those who have existing infrastructure to do so. As seen in the case of Etherium, it could cause a complete overhaul of existing infrastructure. An existing blockchain economy worth billions of dollars brings a bag of risk to the new blockchain infrastructure. A lot can go wrong, especially since it has never been done on such a scale before.

So, in general, the obvious choice is to choose a scalable focused layer 1 chain for DApp developers and users. As expected, the list of Layer 1 chain solutions trying to take advantage of the explosion in demand for faster blockchain infrastructure has grown year after year – notable mentions are the Benson Smart Chain, Tron and EOS. However, as we have discovered, decentralization is apparently not the strongest case of these alternatives. Faced with the aforementioned blockchain trilogy, most alternatives to Ethereum and Bitcoin have settled for speed on decentralization. Therefore, it becomes a question of priority and what developers are willing to trade-off.

Perhaps the third and more optimal option is to go for a level-two solution. This allows developers to at least ensure that they have access to all the bits and pieces needed to create the best blockchain application.

Level-Two Solutions Blockchain Quarterly Quick Answer?

Scalability errors in the Etherium blockchain force the network to build on existing ones and prevent some transactions and computing loads from occurring. A multi-level approach ensures that developers continue to enjoy the high fluidity of the etherium blockchain and yet avoid the barriers associated with the ecosystem.

The idea is to complete all calculations and scalable payments off-chain and to interim record such activities in the Layer 1 blockchain. Whether it’s optimistic rollups, state channels, plasma or zero-knowledge rollups (ZK-rolllops), the goal remains the same: remove the apparent limitations of decentralized blockchain.

Meanwhile, Polygon (formerly known as Matic) has gained a lot of traction as a second-tier solution ideal for Ethereum applications that seek to enable a scalable platform free from the effects of network congestion. The polygon version of Sushi Swap, for example, Sushi, recorded a 75% increase in the number of users in the first week of September, according to Dappardar. Aside from the recent sinking of polygon operations, which I believe is a temporary setback, users have become aware of the potential for layer-to-solution solutions, especially when it comes to retail DFI.

Interestingly, it is not just the DFI sector that is going through this dynamic change. The NFT market is also starting to move to level two with a special solution that is reported to have saved more than $ 400,000 from gas fees just 24 hours after launch. In July, Opensia announced that it had merged with Polygon to enable gas-free business in the NFT marketplace. Note that polygons do not currently produce single-layer solution waves. The other two-tier infrastructure that created a splash is the Cellar Network and Arbitram.

The flow of layer-two adoption has led me to believe that developers are committed to multi-level blockchain infrastructure as the ideal architecture for creating top-level blockchain experiences. If this trend continues, which seems very certain, at least until Ethereum 2.0 comes online, Layer 2 applications will become as valuable as their Layer 1 counterpart. Therefore, joining Layer 2 Party is a reasonable choice for developers who want to improve existing blockchain infrastructure or create new decentralized apps.

The opinions, thoughts and opinions expressed herein are the sole property of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Andrei Serjinkov An independent researcher, analyst and author in the cryptocurrency space. As a strong supporter of blockchain technology and a decentralized world, he believes that world governments, societies and businesses want such decentralization. He is the founder of BTC Pierce, an independent media outlet.