Odaily Frontline | Analysts believe that Ethereum 2.0 may not be able to completely solve the expansion problem

This article comes fromCrypto Briefing, original author: Nivesh Rustgi

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Summary:

This article comes from

, original author: Nivesh Rustgi

Odaily Translator |

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Summary:

- Ethereum needs massive scaling to import the existing 50 million user base into the DeFi platform.

- Ethereum 2.0 and Layer-2 implementations may not be able to keep up with the growth in DeFi network usage.

The average transaction fee on Ethereum has reached $7.50, three times that of Bitcoin. It costs more than $40 to open a wallet on MakerDAO, while a loan on Compound can cost as much as $10. These ridiculously high fees are unsustainable.

Despite worrying signals from Ethereum network congestion and high fees, the space continues to expand as DeFi platforms roll out new yield farming incentives almost every other day.

DeFi users are eagerly awaiting the final release of Ethereum 2.0. Despite promises to scale the ethereum blockchain, this may not be enough to support the existing number of crypto users.

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The Reality of Ethereum 2.0

Assuming Ethereum network gas costs have peaked, now is a good point in time to actually assess how different Ethereum 2.0 will be in gas costs.

Cryptocurrency analyst Alex Krüger shared his forecast on Twitter.

We already know that Ethereum 2.0 is initially set to start with 64 shards, each of which may operate as an independent chain with its own transaction history. In this case, the transaction capacity of the network will increase by 64 times.

Alex Krüger's estimate is based on the assumption that each DeFi user has four addresses. By this logic, this equates to approximately 114,000 unique users. Under the optimistic assumption that each DeFi user uses only two addresses, this number is closer to 220,000 users. With 64 shards, this equates to 14 million users—still not nearly what Coinbase can handle. To make matters worse, Coinbase is only one of several large exchanges.Following the analyst's logic, sharding on Ethereum 2.0 cannot completely solve its congestion problem.Effectiveness of the Ethereum Layer-2 scheme

This time it is the turn of the Layer-2 application debut. Ethereum co-founder Vitalik Buterin supports the use of existing Layer-2 scaling solutions such as Zk sync, OMG, and Loopring for ordinary transactions. It has the potential to expand transaction volume from 12-15 TPS to over 2500 TPS, according to Vitalik's estimates.

High gas fees began to affect the profits of exchanges. As a result, exchanges have raised transfer fees, forcing users to find other ways to move their crypto assets. Although

Tether's Zk-roll up implementation

Significant, but rarely adopted in other exchanges.