Overload has been an issue for Ethereum in the past few months. Not to say this is an explicitly bad thing, but in times of volatility, trading Uniswap can cost over $ 50 and even more to complete more complex (and often relevant) Ethereum transactions.
This is despite the fact that if you think about it, Ethereum hasn’t gone mainstream yet.
Many investors have asked how this can be resolved, especially as ETH is growing in value and more users are trying to trade on Ethereum every day.
Synthetix has a solution, or at least a temporary one.
Synthetix and Optimistic Ethereum scaling solution
On Friday afternoon, Synthetix, in collaboration with Optimistic Ethereum, introduced a scaling solution for its protocol.
Now users can migrate SNX to Optimistic Ethereum, a second-tier scaling solution that uses a technology called rollups to increase transaction speed and reduce transaction costs.
It’s worth noting that not all Synthetix solutions are currently on this Layer 2 solution. As the team wrote in the blog post that announced this move:
“The migration process to OΞ was designed to protect the core functionality of Synthetix with multiple phases over several months to ensure that the protocol is robust enough when both stakeout and synth exchanges are performed entirely on L2.”
Currently only staking is available and it is a one-way bridge for SNX.
In the coming months, this support will expand to include trading sUSD in other Synthetix assets, support for Chainlink oracles, and finally a two-way bridge for SNX, including Synthetix’s Ethereum iteration.
Synthetix Staking is now live on the L2 mainnet of Optimistic Ethereum! @optimismPBC https://t.co/zxGjJghWpW
– Synthetix @ (@synthetix_io) January 15, 2021
Optimism, the team behind Optimistic Ethereum, published its own blog at the same time, in which its goals with the rollout were highlighted.
The blog post had the picture below as the cover and showed a pig with a unicorn horn. Many see this as a sign that Optimistic Ethereum will continue to work with Uniswap, by far one of the most difficult platforms for smaller owners when the Ethereum network is congested.
While Optimistic Ethereum is now live, work continues on ETH2, a longer term scaling solution that will effectively take the speed of Layer Two scaling solutions without sacrificing the sacrifices that solutions like Optimistic Ethereum have.
The ETH2 stakeout appears to be working well as the cryptocurrency, valued at over $ 2.5 billion, is currently on the chain.
This should be followed by the integration of ETH transfers and finally the introduction of intelligent contracts in the coming years.
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