Layer2 VS ETH2.0 Who will be the first half of DeFi?

introduction

The craze for DeFi that exploded last summer and NFT, which has been popular this year, has grown on ETHereum and benefited outside the global financial community, entering the mainstream economy. includes theater, recreation and entertainment. However, functionality through NFT, DeFi, DAO, and other applications means the Ethereum network is deployed. With the growing demand for DeFi and NFT applications, improving Ethereum's scalability, reducing network congestion, reducing fuel costs, and improving network efficiency is an urgent issue. . Therefore, ETH2.0, EIP-1559, a second layer extension is requested. and discussions have taken place.

ethereumAs the open economy was built, the difference in its performance became evident.interestingSolutions to improve Ethereum's performance have always been at the center of interest and discussions among users and geeks for the past two years, and this interest will continue until expansion plans are integrated. to Ethereum and be part of the process. .

SebETH 2.0, EIP-1559alwayslayer 2extension, thatthe principal objectiveYesIt increases the scalability of Ethereum to reduce network congestion, reduce fuel consumption, and improve network efficiency.The desired changes are specific to the Ethereum application.DeFiandTHE T.VWith the growing demand for applications, these requirements have exceeded the current constraints of Ethereum. Strong demand has led to a further rise in Ethereum's costs and competitors, including:Referee SolanaandBSCincrease success.

Ethereum's DeFi TVL protocol has grown over the years ｜ Screenshot by DeFi Llama

P1

What is ETH 2.0 and why is it important?

Ethereum 2.0, also calledETH 2.0Where "peace“This is an update to the Ethereum blockchain. This update aims to improve the speed, efficiency and capabilities of the Ethereum network to achieve greater efficiency and lower costs.

Ethereum co-founder Vitalik Buterin developed the following options:the next 5 to 10 yearsHow to fillETH 2.0.

In general, ETH2.0 can be divided into:obImportant changes:Point of sale and sharing.

1. Mécanisme PoS kev pom zoo

Ethereum developers have worked hard to incorporate proof of concept.(PoW)Network turns to proof of fairness(PoS)ETH2.0 and integrationapplicationTechnology (Sharding), required2022The mainnet's annual announcement is a major overhaul that users have been waiting for.

Proof of the stakesdifferentThe point is, users can borrow local cryptocurrencies on the network and become non-minor consumer products. Validators are like miners in that they analyze the market and the network is not cheating. These validators are selected to enter blocks based on the value of the cryptocurrency they contract and the length of the contract. Then another witness can prove that they saw the block, and when there is enough evidence, the block can be added to the blockchain. Validators will then be rewarded for successful block proposals."Forgé" or "Casted".

The best of points of saleIs it better to sleep?Make him work hard, because it separates the power-hungry computer made by approved algorithms. It also means that more proof of computation is not needed to secure the blockchain.

2. Sharding (Partage)

applicationlarge databasegrind it into small pieces, called partitioning. Scalability has improved because users do not have to store data for the entire network, and only partitions provided to validators store the data.

Now the ETH2.0 plan is64tessonbeacon sawCoordinates the interaction of fragments. Whether the fragments should only provide additional information or be able to complete numbers is still debated today.

P2

Layer 2 extension

OnceYes NoDepending on the nature of the market, the problem of Ethereum expansion needs to be resolved quickly,Ethereum 2.0 sharding planning and development delays,Layer 2 scaling solutions will generally replace the current congestion in the Ethereum state in no time.. (Many would argue that Layer 2 would be the ultimate goal. It's a cure-all for Ethereum's pesky oil problem forever.)

layer 2 network, or as we often saylayer 2, often saidThe second layer of Ethereum, their operating logic is simple: they are calculated or stored outside the main chain to achieve the goal of reducing data processing performance and scaling the main chain, but still rely on the condition of main chains for stability. It improves Ethereum's performance by migrating high capacity and storage through the Ethereum backbone, for example from Layer 1 to Layer 2.

Always availableBitcoin at the start, Phase 2 has been proposed as a solution to the Bitcoin payment problem, including:state channelyetIt's finish,RSKagentscie sabdaws.

God V writes: The general idea in blockchain is to make Layer 1 as simple as possible and create as many complex tasks as Layer 2. Changing process layers (Layer 1) is difficult and causes problems. bodily harm. Therefore, he believes:Ethereum needs to create Layer 1 and Layer 2 at the same time in the short run, and in the long run will have to pay more for Layer 2.

Phase 1 solutions focus on improving the performance of the blockchain core, whileThe Layer2 approach focuses on improving the use of blockchain..

For option 2, there are several solutions:Branched chain, Xeev canal, Plasma, Rollupready. Both can offer many benefits to blockchain capabilities (however, as the Ethereum community is encouraged to become the best way to scale networks, other standard layers 2 provide solutions after accepting major security disruptions. or distribution). increased authorization for some intermediate participation (presumably a sacrifice)

roll upThis is one of the more concerning of the solutions mentioned by Layer 2. Rollup achieves the scaling goal by compressing the data exchange and then synchronizing it for Layer 1.

Based on the differences in performance of compressed data (i.e. data is true), data can be divided into:Cumul ZKandOptimistic balance sheet.

Arbitrum, which has recently gained in popularity, is one of the top Rollup services. Although the Arbitrum network is not yet fully operational or is operating at full speed, users can advance to Level 2 with near visibility and lower fuel costs.

P3

Layer 2 vs ETH2.0

Option 1: "In the short term, Layer 2 appears to be a more attractive 'mechanical framework' for Ethereum and the crypto industry, and may be a long-term honorary solution for the future evolution of Ethereum."

Regarding the current situation, if we compare ETH2.0 to Layer2, we see:

1. Phase 2 can be completed quickly.

What ETH2.0 ultimately fixes are scalability and extensibility issues, but ETH2.0 iswill take more than two yearsFinally, Ethereum's first and second stages have started, but level 0 is now live. However, the ETH 2.0-led TPS is still not sufficient for understandable applications that require the operation of a chainsaw.And Layer 2 will build on the ETH 2.0 experience to ensure a better experience for end users..

2. ETH2.0 also focuses on Layer 2 technology.

ETH2.0 does not provide the infinite functionality of Ethereum,Although ETH2.0 measures on its own, Layer 2 needs to be done.. And it is likely that ETH2.0 will still revolve around layer 2. Specialroll upThese products improve scalability.

In response to the need for short to medium term expansion, the entire Ethereum ecosystem should focus its efforts on rollups and ROlup is part of the second generation of technology..

Theme 2: Layer2 itself contains questions and problems.

layer 2 is the necessary solution to scale Ethereum,However, it has its own questions and issues that may prevent the platform from realizing its true view of the world of supercomputers..

Phase 2 has the advantages of measuring capacity, but different procedures 2 have different models.There are a lot of downsides.

second layer extension solutionno direction. It also means that each solution is designed for a different application. So there is a big problem here. If different plans support 2 different processes, how do you know?Price correlation? How to benefit from the advantages of the contract?

1. Restrict configurability

The use of procedure 2 can be restricted or even omitted.Because layer 2 is not currently communicating with each other (working)

Simply put, DApps on Layer 2 cannot communicate with other DApps on Layer 2, causing damage.

In phase 1, a stock exchange can be associated with various DeFi rules to develop new financial tools. and in layer 2Companies can only interact with DeFi protocols that exist on their own channels.. Assuming that Aave only applies to Polygon and Uniswap only applies to Optimism, you cannot write an exchange that can call Aave and Uniswap smart contracts at the same time.

force li nonapplication, connectivity is limited, so the magic of DeFi is very limited. This can be said with interconnect processes like Polygon, but this layer attempts to connect every Layer 2 solution to the process model. But developing solutions based on Polygon models and platforms will be a long way off.

2. Liquidity segmentation

Another reason why DApps can decompose multiple layers of 2 strings is:Core capital is also segmented.force li nonapplication, connectivity is limited, so the magic of DeFi is very limited. This can be said with interconnect processes like Polygon, but this layer attempts to connect every Layer 2 solution to the process model. But developing solutions based on Polygon models and platforms will be a long way off.

2. Liquidity segmentation

Another reason why DApps can decompose multiple layers of 2 strings is:Core capital is also segmented.

Liquidity is very important in a financial market because it does not interfere with buying and selling prices and provides a healthy market for buyers and sellers to meet and trade items in the open market, without causing d exchange at crazy prices.

Yes No,All resources in Ethereum—— Provides healthy and liquid trading to all financial instruments and tokens on the platform.

The move to Layer 2 will see existing resources allocated to Ethereum Layer 1 and other solutions instead of all existing resources available in Ethereum.

3. Friction on integration and exit

As we reach the end state of Ethereum's Layer 2 multichannel world, there will be major friction on each Layer 2 to interact with DeFi.

It can have multiple links on Layer2, so this should happen when trying to change the number of strings.long integration time.

Track money for these solutions from users with past experience or headaches.

Suppose you have AAVE on Polygon and want to change it to uni using Uniswap in anticipation. Not only do we need to migrate AAVE from Polygon to Ethereum (the bridge on Layer 2 should now appear), we also need to upgrade AAVE from Layer 1 of Ethereum to Optimism. Polygon removal time is about 15 minutes, the need for cumulative optimism, so we assume the start time is 1-2 weeks.

Of course, these issues are truly solvable and backed by the mighty electric power of the Ethereum developer community, all 2 major solutions will be resolved shortly after the public announcement. We can expect to see some integration into Layer 2 sites based on the power of each technology (such as DEX and payments), with a few winners standing out.

P4

Layer 2 has good eyesight.

ETH 2.0We come up with new solutions, building ETH2.0 is a slow and big task, but ETH2.0 has also entered the first phase of the Phase 0 beacon chain (December 1).

Scalability of the app is only the last big phase of ETH2.0 and it will take many years, as the best way to solve the scalability issue of Ethereum, Layer 2 also needs to be improved .good and constantly improving.If Layer2 can support DeFi and complement Layer1 configuration and security, then Layer2 will have a place in all DeFi developments and drive industry innovation.