Will Layer-2 Solutions Become Obsolete Once Ethereum 2.0 Is Live?

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Will Layer-2 Solutions Become Obsolete Once Ethereum 2.0 Is Live?

Layer-2 solutions are primarily designed to solve the problem of scalability in the Ethereum network. They help scale applications by processing transactions off of the Ethereum mainnet. Will these solutions become obsolete once Ethereum 2.0 goes live? Let’s find out. 

What Are Layer-2 Solutions? 

Layer-2 generally refers to a secondary framework or protocol built on top of an existing blockchain. In practical terms, it describes a solution built to help scale an application by processing transactions off of the Ethereum mainnet, without compromising its integrity in terms of decentralization, transparency and security. 

Layer-2 solutions are highly regarded in the cryptocurrency world because they solve the well-known scalability issue for Ethereum. They make the Ethereum blockchain less congested and keep out unnecessary transaction history. 

How Useful Are Layer-2 Solutions? 

As stated earlier, Layer-2 solutions solve one of the biggest problems of the Ethereum network – scalability. They are considered very useful because they eliminate most of the impediments to the wide adoption of Ethereum and other cryptocurrencies. 

Layer-2 solutions can help make using Ethereum much more convenient. They could also further accelerate the rapid growth in Decentralized Finance (DeFi) and the increasing interest in Non-Fungible Tokens (NFTs)

What Is Ethereum 2.0? 

Ethereum 2.0 is basically a series of upgrades to the Ethereum network that can solve some of its inherent problems. Though the Ethereum Foundation has since ceased to refer to the upgrade by the Ethereum 2.0 name, most industry insiders still call it Ethereum 2.0 or Eth2. 
The call for an upgrade to the Ethereum network is primarily due to its scalability issues. Ethereum has a disappointing transaction speed. It can only process 30 transactions per second. Compare that to Visa which can process about 1,700 transactions per second. There's an obvious need for an upgrade. 

Will Ethereum 2.0 Eliminate The Need For Layer-2 Solutions? 

The Ethereum Foundation obviously understands the need for serious improvement, which is why it is taking time to roll out the series of changes that will solve the key problems of the network. However, Ethereum 2.0 is unlikely to eliminate the need for layer two solutions. 

It is likely that Ethereum 2.0 will significantly improve the speed of the Ethereum network and make it less congested. It is bound to make the network more scalable, more sustainable, and more secure. But like Bitcoin, it may never achieve infinite scalability. 

Considering that Ethereum is poised to grow a lot bigger as the cryptocurrency universe continue to expand, there will still be a need for Layer-2 solutions. Besides, no one can tell with certainty how well the series of upgrades will improve the experience of users of the network. 

It is important to also state here that some Layer-2 solutions have grown too popular that many will prefer to continue using them even after Ethereum 2.0 goes live. Again, some Layer-2 solutions serve users across multiple blockchains. 

Wrapping Up 

Ethereum 2.0 can be the long-term solution to the inherent problems in the Ethereum network. Its launch, however, is unlikely to make Layer-2 solutions obsolete. They may become a little less important in the Ethereum network, but they will continue to serve users across the cryptocurrency universe. 

Michael is a Nigerian crypto enthusiast and versatile freelance writer. He has a Bachelor’s degree in Agric. Economics and studied Accounting at a professional level. He’s been writing full-time since 2017 and niched down to crypto and finance writing in 2020. He joined CoinCodex in 2022 and covers a wide variety of topics, including DeFi, NFT, Web3, and the metaverse.

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