The week of 02/08 at a glance – News about Bitcoin and cryptocurrencies is in constant turmoil. It can happen that important information gets lost in the daily news flow and you miss important points.
This format is there to remedy that. We return to the news of the past week in the Crypto Weekly to keep you informed on the current situation of cryptocurrencies.
The unmissable of the corner
For this week’s must-see, we’re going to look at an article I had the pleasure of writing. As Ethereum struggles with ever higher transaction fees, second-layer solutions like Optimism seek to address scalability issues . Let’s see what Optimism is.
As it stands, the Ethereum network has a processing capacity of around thirty transactions per second . Although its characteristics have allowed it to evolve so far, the limits of the network have not ceased to be reached since the beginning of 2020.
In practice, the network has consistently exceeded 90% usage from April 2020 . A level which has continued to increase to reach 97.8% at the time of writing. As a reminder, the use of the network is calculated according to the average of the gas consumed, compared to the maximum gas limit set by the protocol.
As a result of this high usage, network transaction fees exploded, finally reaching a record average of $ 17.5 . Worse still: some interactions with decentralized applications can cost tens of dollars in fees.
The second layer to the rescue
As it stands, the majority of traffic recorded by Ethereum, as well as a large part of its decentralized applications, takes place on layer 1, namely the Ethereum blockchain.
Therefore, the vast majority of actions performed on Ethereum tap into the limited capacity of the network.
Second-layer solutions aim to deport part of the activity out of the main chain . However, these are based on the main chain to ensure better security.
Optimism is a project initiated in June 2019, which takes advantage of Rollups to offer a second layer solution to the Ethereum network. In theory, this solution would be able to process more than 20,000 transactions per second .
It therefore provides almost instantaneous transactions , smart contracts and, all without the need for gas .
The project is led by the Optimism Public Benefit Corporation , founded by Jinglan Wang.
The protocol made headlines in September 2020 with the launch of a testnet on Ethereum. Building on this success, the protocol was finally deployed on the mainnet on January 15, 2021 .