Although Ethereum is often praised for its open-ended, decentralized blockchain, scalability has never been one of its strong suits. On the Ethereum blockchain, high demand has led to slower transactions and outrageous gas prices.
An array of Layer-2 scaling solutions such as Polygon, Optimism, and Immutable-X sprung up across the Ethereum network hoping to solve this problem. Layer-1 refers to the blockchain architecture, whereas Layer-2 refers to a network built on top of the underlying Layer-1.
The Layer-1 Scalability of Ethereum Will Improve
While scalability remains a problem for Ethereum, Surojit Chatterjee, the Chief Product Officer of Coinbase, has predicted that the scalability of the Ethereum network will drastically improve in 2022.
Currently Ethereum can only handle 15-45 transactions per second, whereas Polygon boasts speeds of up to 65,000 transactions per second on a single side chain.
Although L1 is expected to improve in 2022, Chatterjee still believes that L2, which grew by 11,000% in 2021, will also make great strides this year.
As Layer-1 scalability drastically improves, Chatterjee explains that more L1 networks focused on gaming and social media could also emerge on Ethereum. In addition to this, he also predicts that more privacy-focused applications are likely to be developed in 2022.
On the Flipside
- Chatterjee believes that Ethereum could attract more regulatory attention as Know Your Customer and Anti-Money Laundering restrictions are more strictly enforced.
Why You Should Care
Achieving better scalability, a Layer-1 problem within Ethereum, could potentially be the last piece of the puzzle to unlock Ethereum’s explosive growth.