According to Coinbase’s Chief Product Officer, Surojit Chatterjee, Ethereum scalability will make significant progress in 2022.
There is a lot of speculation in the crypto community about what will happen in the year 2022. When it comes to Web3 and the crypto economy, Surojit Chatterjee feels Ethereum will be at the forefront.
He made his predictions in a blog post published on the company’s website on January 4. He indicated that although Ethereum’s scalability would increase, other layers one network will also gain popularity.
With the introduction of Eth2 and other L2 rollups, I am optimistic about improvements in Eth scalability.
He also predicted the development of new layer-one networks devoted to gaming and social media. Chatterjee expects that breakthroughs in layer-one-to-layer-two bridges will significantly increase scalability, and the industry will rush to improve the speed and usefulness of cross-L1 and L1-L2 bridges.
These bridges facilitate the transfer of tokens between layer one networks, such as Ethereum, and layer two networks, such as Arbitrum, and vice versa.
The CPO mainly addressed zk-Rollups while discussing scaling technologies, adding that they would “draw both investor and user interest.” Zero-Knowledge scaling “rolls up” transaction data in batches for more efficient layer one processing on Ethereum.
Matter Labs, for example, has made great strides in 2021 with the development and implementation of its rollup-based zkSync layer-two platform.
In 2021, the layer-two ecosystem grew massively, with a spike in popularity on all major platforms. ‘ In the last year, the total value locked increased by about 11,000% from roughly $50 million in January 2021 to $5.5 billion by year’s end.
Ethereum is the most popular blockchain platform for distributed applications, and it is currently used by many industries and organizations, including banks, healthcare providers, and computing giants. However, Ethereum faces scalability issues due to its public blockchain architecture which requires a separate token (ether) to be used to pay for transaction fees.
Ethereum’s developers have been thinking about new ways of solving this problem. On the other hand, some companies are already providing solutions by developing private permissioned blockchains with faster transaction speeds and lower fees.
As more people adopt Ethereum as their go-to blockchain platform, scalability will become one of the most pressing problems that need to be solved to maintain its position as the industry leader in decentralized computing.