Since the introduction of blockchain in 2009, the primary focus has been on decentralization and security. However, as the user base continues to expand, mainnets are struggling to meet the scalability expectations of users. In today’s fast-paced world, everyone desires cost-effectiveness and lightning-fast performance in everything. So, how can blockchains fulfill the diverse needs of their growing user base? This is where layer-2 blockchains built on the mainnet come into play, enhancing scalability. In this article, we will explain how layer-2 blockchains improve the efficiency of mainnets, using Ethereum and Optimism as examples. Furthermore, we will discuss how these advancements can increase the value of new ERC20 tokens like Caged Beasts(BEASTS).
Ethereum’s Scalability Challenge
Ethereum, an open-source blockchain technology that hosts thousands of crypto projects, reached its peak in 2021 with approximately $108 billion in total value locked. Despite Ethereum’s explosive popularity, the development team has faced challenges in improving its scalability to match the high levels of security and decentralization. Currently, the Ethereum blockchain can only handle a meagre 30 transactions per second. However, during periods of network congestion, transaction times increase along with fees.
To address these scalability issues, Ethereum recently transitioned to a Proof of Stake consensus mechanism for transaction validation. This revolutionary mechanism aims to reduce the time required to verify transactions, ultimately enhancing the Ethereum network’s transactional throughput. Additionally, Ethereum allows developers to build layer 2 blockchain technologies on top of it, providing a more efficient solution to tackle scalability concerns.
How Optimism Improves Ethereum’s Scalability Issues
Layer 2 in blockchain technology refers to a network built on top of the mainnet to enhance its efficiency. Various types of layer 2 blockchains, including sidechains, Roll-Ups, Plasma Chains, and Validiums, have been developed to address scalability issues.
Optimism is one such scalability solution built on the Ethereum network. It leverages the optimistic roll-up feature, which significantly reduces transaction times on the Ethereum network by validating them on a separate blockchain using advanced data compression techniques.
In the case of optimistic roll-ups, transactions submitted on the mainnet are assumed to be valid by default, eliminating the need for generating validity proofs for each transaction. However, if an invalid transaction is identified, fraud-proof can be submitted against it. To date, the Optimism layer-2 blockchain has saved nearly $3 billion in gas fees by reducing transaction times.
Caged Beasts: Eco-Friendly ERC-20 Token On Rise
Caged Beasts is a new crypto project built on the Ethereum blockchain, driven by its ERC-20 token called BEASTS. Leveraging Ethereum’s technological advancements, Caged Beasts aims to position itself as a prominent player in the cryptocurrency market.
Due to Ethereum’s proof of Stake consensus mechanism, ERC-20 tokens such as Caged Beasts cannot be minted. Instead, users can simply stake their tokens and earn rewards in return, making Caged Beasts an eco-friendly crypto token.
Layer-2 scaling solutions like Optimism play a vital role in reducing the gas fees associated with token transactions on the Ethereum network. This reduction in transaction costs makes Caged Beasts a more affordable token for users.
During the ongoing presale stage, Caged Beasts is offering its BEASTS token for just $0.00000557. Moreover, the project team has introduced a referral scheme that benefits both the referrer and the referred individuals. Through this scheme, members of the Caged Beasts community can earn a 20% commission in USDT, BNB, or ETH based on the deposits made by investors referred by them. Additionally, investors can receive an extra 20% in BEASTS tokens by using the referral code.
In conclusion, layer-2 solutions like Optimism improve scalability, reduce transaction costs and time, and enhance the user experience. These advancements can have a positive impact on the worth and value proposition of new ERC-20 tokens, such as Caged Beasts.