|

Can Ethereum scale over 2500 TPS using layer-two solutions?

  • 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. 

Author

Rajarshi Mitra

Rajarshi Mitra

Independent Analyst

Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.

More from Rajarshi Mitra
Share:

Editor's Picks

XRP rebounds on surging whale accumulation

Ripple (XRP) holds above $1.40 support on Wednesday, as bulls return to take control following three consecutive days of declines. The remittance token’s upside appears capped at $1.50 while extended gains would face additional resistance at $1.70.

Bitcoin extends gains as investors shift to debasement-resistant assets

Bitcoin extends rally toward $80,000 amid persistent bullish momentum. Bitcoin’s SOPR indicator above 1 signals mild profit-taking, and a continued trend could suggest steady price growth as buyers absorb supply.

Crypto Today: Bitcoin, Ethereum, XRP bulls regain strength amid steady capital inflows

Cryptocurrency prices are broadly edging higher on Thursday, led by Bitcoin’s uptick near $80,000. Altcoins mirror Bitcoin’s short-term bullish outlook, with Ethereum trading above $2,500 and Ripple hovering above its key $1.40 support.

Cardano risks steeper decline amid easing retail demand 

Cardano is trading in the red on Thursday, with roughly 10% losses so far this week, suggesting capitulation after last week’s 30% rally. Waning retail demand in ADA futures amid declining Open Interest and funding rates suggests capitulation speculation.

Bitcoin: The US Treasury saves BTC

Bitcoin extends gains, trading above $77,000 on Friday after rallying over 20% and reaching its highest level since mid-May. Crypto markets continue to cheer the US Treasury’s decision to double its debt buyback operations, posting their 7th-largest liquidation event in history.