Which protocols will benefit from the Ethereum Cancun upgrade?
Original author:OnChainChad,Crypto KOL
Original Compilation: Felix, PANews
Original author:
Crypto KOL
Original Compilation: Felix, PANews
Are you regretting missing out on the LSD bull market before the upgrade in Shanghai? Not to worry, the Cancun upgrade - an upgrade that directly benefits Layer 2 (L2) tokens is coming.
What benefits will the Cancun upgrade bring and how will it affect the L2s?
In short, the Cancun upgrade will make L2 10-100x faster and cheaper.
Some people may ask, how is this possible?
Fundamentally, L2 needs to submit L2 txs to L1 (Ethereum) to achieve the same level of security as L1.
Before the Cancun upgrade, L2 txs were stored in Calldata of L1 txs. But this method is expensive, and the space of Calldata is limited.
After the Cancun upgrade, L1 will be stored in a new location called "Blob". Blob storage costs less and offers more space.
So, here's a quick calculation:
If L2 has 1000 txs stored in L1, 1 Calldata can store up to 100 L2 txs at a cost of 1 ETH.
If there are 1000 L2 txs, 10 Calldata are required, and the cost is 10 ETH.
If stored in blob, 1000 L2 txs can be stored in 1 blob, and the cost of 1 blob is 0.1 ETH.
Before the Cancun upgrade:
1 L2 transaction, will cost 10/1000 = 0.01 ETH
After the Cancun upgrade:
1 L2 transaction will cost 0.1/1000 = 0.0001 ETH
100 times cheaper.
Note that for an L2 transaction to be finalized, it must be stored in Ethereum. Therefore, if you want to confirm 1000 L2 txs, it is also related to the time to submit to L1. So another math problem:
Stored in Blob, you can use 1 L1 txs to confirm 1000 L2 txs, but stored in Calldata, you need 10 L1 txs to confirm 1000 L2 txs.
Therefore, stored on the Blob, you can confirm 10 times more L2 txs than before, and the larger the space, the faster the speed.
The Cancun upgrade will make L2s cheaper and faster.
ARB、OP
Now you might see L2s costing even more than L1s, but after the Cancun upgrade, things will be a lot better.
Now that I know the basic logic, what should I do to prepare? What projects should be invested in? Here is a list. Both L2 projects and tokens will benefit from the Cancun upgrade.
These two are the top projects of Layer 2. If there is L2 Summer, these two tokens will definitely benefit the most.
Boba、Metis
Arbitrum and Optimism have the highest TVL and the most users and have been running for many years with a mature ecosystem.
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LRC、IMX、dYdX
Assessment: Moderate risk but high reward
MATIC
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SHIB、CULT
Evaluation: The market capitalization of MATIC is already very high, so the expected return on investment is relatively small.
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Both SHIB and Cult.DAO have stated that they will launch Layer 2 this year. If the launch is successful and the ecosystem grows, they will be included in the L2 narrative like YFI and FXS.
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Layer 2 Ecological Project
GMX, GNS, RDNT, JOE, etc. in the Arb ecosystem.
ZKS、STARK、SCROLL
SNX, PERP, KWENTA, etc. in the Op ecosystem.
