By Tobi Loba
According to a well-known Ethereum developer, Ryan Berckmans, the cross-rollup scaling solution proposed by Vitalik Buterin is great for the price of Ethereum (ETH).
According to Berckmans, Rollups are capable of increasing the total fees of Ethereum and later accrue the fees to ETH holders.
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Ryan Berckmans tweeted, “Rollups are great for the price of ETH. Rollups can be expected to increase ethereum’s total fees, and fees will soon accrue to ETH holders.”
1/ Rollups are great for the price of ETH
Rollups can be expected to increase ethereum's total fees, and fees will soon accrue to ETH holders.
Here's why👇
— Ryan Berckmans (@RyanBerckmans) March 3, 2021
Vitalik Buterin Proposes Cross-Rollup Scaling Solution
Vitalik Buterin, the co-founder of Ethereum (ETH), recently came up with a proposal to link the different second layer scaling solutions for them to interact with each other, so as to maintain decentralized finance composability and synergy.
This comes in an attempt to battle the ever-increasing transaction fees on the Ethereum network, while creating a unified ecosystem at the same time.
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According to the proposal, two protocols using rollups can interact with each other without damaging their interconnectivity.
As highlighted by Vitalik Buterin, Rollups are layer-two solutions that are basically smart contract networks, which process and store transaction information without the main chain.
Ryan Berckmans States Reasons Why the Proposal Is great For Ethereum (ETH)
In a thread of tweets posted a while ago, the Ethereum developer Ryan Berckmans highlighted the reasons why this cross-rollup scaling solution proposed by Vitalik Buterin is good for the Ethereum network and ETH holders.
Ryan Berckmans noted:
“Rollups scale ethereum by compressing transactions to use 98%+ less L1 gas. In a rollup, the L1 gas bill is split between a much larger set of L2 transactions, which means those L2 transactions are often collectively willing to pay a higher L1 gas price when necessary.
“Rollups use a fair amount of L1 gas to checkpoint state for security purposes. For example, Arbitrum might consume 0.3% of all of ethereum’s gas just to checkpoint its state.
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“So, rollups are often willing to pay relatively high gas prices and also use a fair amount of L1 gas. Multiply that by an ecosystem of many rollups.
“This year, we may expect rollups to increase total fees while scaling ethereum. With EIP-1559 and proof of stake, ethereum’s fees accrue to ETH holders. That’s why rollups are great for the price of ETH.”
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