Under Layer 2, where is the way out for the public chain?

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特邀专栏作者

2020-10-16 15:54 (UTC+8)

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Under Layer 2, where is the way out for the public chain?

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Under Layer 2, where is the way out for the public chain?

When I received the UNI, it was expensive and expensive. After yelling, Layer 2 was moved out to put out the fire. On the other hand, the implementation of Ethereum 2.0 is very long, and it is expected to be 3-5 years, so don't worry about it, the burden of solving the problem of being stuck and expensive falls on Layer 2. Layer 2 has many technical solutions, and it is too difficult to understand at the technical level, but the implementation principle can be explained with a very popular example:

The main chain of Ethereum is a narrow road. It is smooth when there are few cars, but it gets stuck when there are too many cars. If you want to pass quickly, you can add more tolls to jump in the queue. Everyone wants to pass quickly, and the fee will keep rising. But the road is so wide, and only a dozen vehicles can pass through it in a minute, so the card is still a card.

Smart people thought that since the main road is so narrow, build a small road next to the main road and connect the main road through a bridge, so that the cars on the main road will be diverted. This is the Layer 2 solution.

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Bitcoin finds its own sidechain

Bitcoin, like Ethereum, has also been worrying about expansion. LTC proposed to build a side chain of Bitcoin to solve the congestion problem of the Bitcoin main chain, but it has not been implemented. The competition for large blocks was even more bloody, and BCH was born. The development speed of the lightning network behind is not enough.

Bitcoin’s road to expansion is simply a palace drama. These people did not realize the vision of Bitcoin’s multi-layer expansion. As a result, this incident was unexpectedly achieved by Ethereum.

Bitcoin enters the Ethereum ecology through cross-chain, such as our common wbtc, sbtc, and renbtc. The number of Bitcoins on Ethereum is much higher than that on the Lightning Network. In addition, these BTCs can use various smart contracts provided by Ethereum to participate in the DeFi ecosystem, such as pledge and mining. Bitcoin is responsible for security, Ethereum is responsible for scaling, and Bitcoin has completed its ultimate vision in a way that no one expected.

Bitcoin found its own side chain, which turned out to be Ethereum.

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Who is the ultimate Layer 2?

At present, whether Layer 2 can really solve the congestion problem, of course it can, but currently Layer 2 cannot solve the problem of composability. The native DeFi on Ethereum is like a Lego building block. Different DeFi can interact with each other. In a single transaction, multiple smart contracts can be called at the same time. This is the prerequisite for the prosperity of DeFi.

Each Layer 2 is a network. It is difficult for DeFi applications on Layer 2 to interact with native DeFi on Ethereum due to the difference in network mechanisms. The same is true for the interaction of DeFi applications on different Layer 2s.

Is there nothing wrong with other public chains?

Compared with other public chains, Ethereum is a completely independent blockchain network. In fact, as long as there is a bridge with Ethereum, it is a member of the Ethereum Layer 2 ecosystem.

At present, everyone's eyes are focused on the Layer 2 projects based on Ethereum, there are a lot of coins and no coins. Looking back on the road of Bitcoin expansion, no one can think of which is the best Layer 2 project of Ethereum in the end, and it is very likely that it will appear in a way that no one thought of, just like today’s Ethereum has become the best side chain of Bitcoin .

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Ethereum 2.0 is not necessarily Ethereum

Many people have misunderstandings about Ethereum 2.0, thinking that Ethereum 2.0 will start, and performance will be improved immediately. In fact, Ethereum 2.0 has been divided into many stages. Only when sharding is released, the performance can be improved. The most active implementation cycle is expected to take 3-5 years.

Ethereum 2.0 has nothing to do with the current Ethereum. It is a separate project. The idea is that I want to make a more powerful project to defeat and replace the existing Ethereum and name it 2.0.

However, the self-propelled 2.0 revolution of Ethereum may actually fail. The main reason is the complete failure of the governance model of Ethereum. Just ask, who is deciding the future of Ethereum, ETH holders? Ethereum Foundation? Who decides on the Ethereum Foundation? Are the interests of these people the same as those of ETH holders? Why does the Ethereum Foundation promote the huge Ethereum 2.0 project for us currency holders?

If you think about it, you will find that the group of people who determine the future of Ethereum is decoupled from the interests of ETH holders.

epilogue

Ethereum is Layer 2 of Bitcoin.

The other public chain is Layer 2 of Ethereum.

And the final Layer 2, let's call it Layer 2, for example, who would have thought that Ethereum is the real Layer 2 of Bitcoin. The self-revolution of Ethereum 2.0 may fail, and this Layer 2 will become Ethereum 2.0 or blockchain 3.0.