• Layer-two scaling solutions appear to be increasing Ethereum’s scalability before the launch of ETH 2.0.
  • Starkware’s ZK Rollup solution can theoretically scale Ethereum for over 50 million users while charging a low fee.
  • Despite claims of over 10,000 TPS, ETH co-founder estimates that real throughput will be about 2,500 TPS.

Layer-two infrastructure is expected to enormously boost Ethereum’s scalability, making the network more efficient. However, added complexities can make it difficult for users to migrate immediately. Experts had earlier criticized Ethereum for its limited throughput and recognized this as the biggest obstacle for adoption. Layer-two scaling solutions are dismantling this critique by enabling the network to process over 2500 transactions per second.

Upcoming ETH 2.0 has been long perceived as the scaling solution that will increase Ethereum’s usage. The second-layer solutions are already achieving this temporarily. OmiseGo, a project working on scaling Ethereum, was launched on mainnet and soon announced that Tether stablecoin would now operate on its layer-two infrastructure.

Starkware, a layer-two solution using ZK rollups, experimented to see what onboarding a subreddit with 1.3 million would do to Ethereum if rollups were used to scale the network. The result revealed that it would only use 2.5% of the network’s bandwidth at an average of $0.003 per transaction. Theoretically, this means that 52 million users could use Ethereum before transaction fees rose significantly.

Vitalik Buterin, the co-founder of Ethereum, believes these solutions are “by and large limited to payments and DEXes.” But token transfer and trading constitute a large portion of Ethereum’s on-chain activity. Despite over 10,000 TPS claims, Buterin estimates that real throughput will be about 2,500 TPS with all the solutions running on top of Ethereum. The network currently has a 15 TPS ceiling. 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP