Ethereum is expensive and slow, so roll-up layer 2 startup ransom price rises

[Digital Today Reporter Hwang Chi-gyu] The so-called’Layer 2’technology focused on enhancing Ethereum performance as various services based on the Ethereum blockchain such as decentralized finance (DPE) and non-replaceable tokens (NFT) increase. The presence of startups has grown. Crypto funds have also actively launched to support live ammunition to these startups.

On the 24th (local time), Starkware, an Ethereum layer 2 technology developer, attracted an investment of $75 million. This investment was led by a crypto fund, a paradigm. Paradigm also led the $30 million investment round conducted by Starkware in 2018.

Recently, the Ethereum blockchain ecosystem has heated controversy over transaction fees and performance. According to Theblock, transaction fees on Ethereum this week have averaged over $18. Considering that it was $0.08 in early 2020, it is a steep rise.

As a result, interest in Layer 2 technology, which allows you to reduce fees and increase speed while using Ethereum, is growing. In particular, rollup-based layer 2 technologies such as ZK-Rollup and Optimistic have recently emerged as an issue.

In the blockchain, Layer 2 is focused on solving the scalability problem of the blockchain main network, which takes time to process transactions because the nodes are distributed. In the case of rollup, it is attracting attention because it can enhance scalability without disturbing the security of Ethereum.

To this end, Starkware is providing Cairo service. Starknet, a permissionless decentralized ZK-roll-up technology, is also preparing.

The company emphasizes that Starknet will allow developers to expand the dApp they are developing in the same experience as Ethereum.

Starkware aims to soften Starknet to make the ZK-Rollup technology the ultimate scalability solution on Ethereum.

However, its rival, Optimistic Roll-up technology, is also rapidly evolving, and the results remain to be seen. Optimistic Rollup allows applications to interact instantly. On the other hand, ZK-roll-up technology exists as a silo in its own environment.

Optimistic Rollup allows virtually anyone to connect to an Ethereum clone, which has a higher throughput, but ZK-Rollup requires users to connect to the application with their own rollup. However, Starkware emphasizes that it will make ZK-Rollup have the same characteristics as Optimistic through Starknet, and the future move is drawing attention.