Scalability and performance of Layer 2 networks on Ethereum increased between 47% and 528% between the last six to twelve months, According to the on-chain analysis website, Grow the pie, which used only L2 networks compatible with the Ethereum Virtual Machine (EVM) to compile its ranking. This efficiency was measured by each network’s ability to process gas units per second.
L2 blockchains are blockchains that work on top of another main Blockchain with the purpose of improving some aspects of it, such as efficiency, speed and transaction costs.
Base (528%), Mantle (300%), Mode Network (553%), Arbitrum One (162%), Blast (168%) and OP Mainnet (47%) were some of the L2s of Ethereum of greatest growth in this aspect of its scalability.
Chart showing the growth of the computing power of some Ethereum L2s. Source: Grow the pie.
The platform used a monthly throughput metric that measures the computational capacity of a blockchain by the amount of gas per second (Mgas/s) that processes that network, not limited only to the number of transactions.
This becomes relevant considering that the complexity of an operation can vary depending on the type of transaction: a transfer on Ethereum consumes less gas than, for example, an operation on a DeFi protocol.
The term “gas” is used to refer to the minimum unit of cost required to execute an operation on a network. This cost is used to pay the nodes for their work as validators and for securing the transaction. The higher this number is, the more complex the transaction will be and thus potentially more expensive for the user.
What are the implications of higher throughput power in an L2?
The increase in processing power measured in Mgas/s of the aforementioned Ethereum L2indicates a superior ability to handle computational loads.
This is vital for the stability and efficiency of networks that support decentralized applications (dApps) and more complex operations, such as decentralized finance (DeFi).
This metric is also important for application developers to evaluate the potential, possible cost implications, and performance limitations of a chain.
On the other hand, low throughput can lead to network congestion, which would increase costs and slow down the processing of transactions. This is important in networks like Ethereum because they must have high throughput to meet the demand of users who perform constant actions within the network.
To address this saturation, Layer 2 solutions allow transactions to take place off the main chain, thereby increasing throughput and improving efficiency on the main chain.
Ultimately, throughput is not only an indicator of a blockchain’s current capacity, but also its potential to handle future demands without sacrificing performance or increasing costs.
Base, Coinbase’s network, is the fastest growing L2
This Ethereum L2 created by the Coinbase exchange was enabled on August 9, 2023, an event that CriptoNoticias reported opportunely.
Its purpose is to improve the scalability of the Ethereum network and provide a more favorable framework for developers to build new decentralized applications.
Part of the growth of this network occurred over the past few months due to the introduction of a new tool that the platform called Basenames. Through this application, developers can establish their identity and link it to your wallet by using easily readable and human-identifiable names.
Within the Base network, users can identify each other and carry out a transaction using names in a similar way to that done with a home banking application, through an alias.
In addition to the increase in the throughput metric exposed by Grow the piethe growth of the Base network is also reflected in the increase in monthly active addresses it has obtained since June 2023. Currently, this number stands at 886,300 accounts.
Base network usage growth from June 2023 to present. Source: Grow the pie.
At the same time, the number of daily transactions recorded on the network, which currently stands at almost $4,000,000, is close to its historical highs, when in July 2024 it exceeded $4.3 billion.
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