Coinbase proposed a Layer 2 solution for Cryptocurrency Ethereum
The major cryptocurrency exchange, Coinbase has proposed a Layer – 2 solution for Ethereum. The newly discovered technology provides speedy and affordable Ethereum transactions from the wallets.
The proclamation disclosed that the exchange was consolidated with optimism's Optimistic Rollup Testnet. The Coinbase supercharged Ethereum would be available on the non – custodial wallet and dApp browser instead of the exchanger. With the help of an Optimistic network, users would be able to view their balances and transactions.
The crypto exchange recapitulated its assurance to support Ethereum Layer – 2 scaling through a tweet. Once again, the amalgamation of the native support for the Testnet has been confirmed by the crypto exchange. This time, they alleged to furnish flexible dApp, speedy, and low-cost wallet transactions.
The layer – 2 scaling includes the elimination of some on-chain estimation from the main net. This provides faster completion as well as space for more transactions. Layer 1 is the main network whereas browser and custodial wallets are considered layer 2 as they are off-chain.
The responsibility of the development of layer 2 relies on the developers at Plasma Group. In late September, they declared the launch of the Ethereum test net. Then, they developed an Ethereum Virtual Machine (EVM) which would help them in the execution of the layer 2 systems.
The Coinbase Turbocharge Ethereum solution was required to reduce congestion. This financial year has been operative in the cryptocurrency market as many organizations are choosing digital currencies more than ever.
The shift to digital currencies is because of the troubles of the fiat currency. Traditional stocks have become a little sluggish due to the coronavirus pandemic. Now, virtual currencies are leading.
This year has been very active for Ethereum as it furnishes operating PKI platform for other cryptocurrencies. Other assets start becoming rampant with the increase in the use of Ethereum. This was specifically noticeable with the rise in decentralized finances (DeFi).
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CBW - External Analyst