DApps To Majorly Adopt Layer-2 Scaling Solutions – Predicts Blockchain Entrepreneur

DApp, Defi and Ethereum 2.0 are the hot topics in the crypto spectrum these days. While the community is concerned about issues such as ‘sustainability and scalability’ in Ethereum blockchain, the ETH developers aren’t resting though.! 

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The emergence of Ethereum 2.0/ETH 2.0

While the second-largest cryptocurrency rose to dizzying heights in 2017 before plummeting to a current value of $246, many flagged Ethereum, majorly due to scalability issues. And the same goes for the Bitcoin blockchain network as well. They cannot execute more transactions per second, for example, Bitcoin and Ethereum execute 7 and 25 respectively transactions per second. 

These issues have impacted the cryptocurrencies in multiple ways, some of them include,

  1. Low scalability means they are not practical for real-time usage.
  2. In the case of Ethereum, it is just not only cryptocurrency but a decentralized application(dApp) too. Therefore it needs to be scalable.
  3. Cryptocurrencies with this issue will never get mainstream acceptance.

That being said, Ethereum 2.0 is the major upgrade to the current Ethereum network. It set to transition its blockchain to a more efficient, adaptive and proof-of-stake system. Ethereum 2.0 significantly offer following features; 


Ehtereum operated on Proof-of-Work(PoW) whereas Ethereum 2.0 will be operated on Proof-of-Stake. Here, miners are replaced by validators. 

  • The validators look up a portion of their tokens within the ecosystem as a stake instead of hoarding mining equipment.
  • The bigger the size of the stake, the more the validator gets the opportunities to bet on the validity of a potential block.
  • If their bet is successful then they receive a reward which is proportional to their bet.

Shard Chains

Shard Chains is the mechanism in which the Ethereum blockchain is split horizontally which results in processing data among many nodes. This allows transactions to be executed in parallel rather than consecutively.

Layer 2 Integration

Layer-2 can be described as a piece of architecture on the top of the underlying protocol. This can be used to handle more complex computations and achieve faster operations. They are also called ‘Off-Chain’ solutions as the operations take place normally on the blockchain but off the blockchain.

Now, you may think when Ethereum is already implementing shard chains then why it still needs layer-2?

The reason is pretty simple, shard chains work on blockchain layer or layer-1. Hence, layer-2 can considerably reduce the congestion in the main chain. It is similar to a fly-over, which diverts the traffic from the main road.

DApps Adopting Layer-2 Scaling Solutions Will Change the Game

Talks on Defi and DApps have been on top bulletins for quite some time now. Matic, for instance, is the most hyped layer 2 scaling solution. Elaborating on how the future projects/DApps Adopting Layer-2 Scaling Solutions will change the game, entrepreneur Tyler Smith in his series of tweets says; 

We will see a lot of DApps start to announce their chosen scaling solution.

Smith who is a blockchain consultant and is running validators on Altona, highlights crucial insights regarding Ethereum that we may see in next  6-12 months. In his series of tweets, Smith emphasized that the Dapp will select the layer 2 scaling platforms based on their needs. He gave an example of a cyberpunk role-playing game, ‘Neo District’ that was announced using Matic Network. He further added that; 

The rollout of layer 2 scalable solutions will take many by surprise. The adoption will be fast and it will redefine the 15 transactions per second paradigm that Ethereum has been limited by since the beginning.

More so, he points out that the Dapp that focused on gaming platforms and exchanges will enjoy the significant benefit. 

Ethereum’s Performance and Prediction

Ethereum after its launch had performed moderately if we consider its price. The major change or jump in March 2017 where-in it jumped to $50 from $13 in the previous month. Later it went on rising and reached it’s ‘all-time high’ in Jan 2018 priced at $1098.36. 

Later, unfortunately, it sank down more than 60% and from January 2020, ETH was priced approximately $181 and went up to $245 in May 2020. In fact, at the time of reporting this, ETH is trading at the value $246.57 against USD, showing a surge of 1.27 per cent within the past 24Hrs. More so, it counts the total market supply of 111,685,462 ETH on the graph of CoinMarketCap (CMC). 

Looking at the probable feature of ETH price in the near future, it may hit above $280. As per the analysis, it may quietly cross $400 by this year-end and will stay around $428 in 2021, $639 in 2022 as per some reports. 

Going forward, a crypto enthusiast on twitter predicted Ethereum to reach $5000 by this year-end. To this, he received the whole bunch of negative comments stating that reaching the $5000 mark is just not possible.

Ethereum no doubt faced critical scalability issues this year which affected the market prices. Ethereum developers are bringing Ethereum 2.0 which is a new, improved version which tackles the issues with its new features. 

The Layer-2 integration also can be a key feature to handle complex transactions in case of any congestion. And also PoS and Shard Chains will help in improving the scalability issue. 

In a nutshell, the curve is bent towards layer 2 scaling solutions than ETH 2.0, essentially. So readers, what’s your take on the possible future of Ethereum network and Layer-2 scaling projects? Let us know via Twitter – @CoinpediaNews

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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