Another reason why L2s are going to explode and revolutionize Ethereum


It seems like there’s not a day going by without a top post complaining about high gas fees on Ethereum. I totally agree with the core critic : retail investors are being priced out of the network. Nobody – except whales – can afford to pay 200$ for a simple swap.

But those days will soon be over.

A lot of people already know about Layer-2, the “execution” layer of Ethereum. They have names like Optimism, Arbitrum and zkSync. But most of the times, when I mention those services, people are still not satisfied. UX isn’t great, bridging to L2 costs money, and there are no liquidity on a lot of pairs there.

That’s about to change!

This week, MakerDAO introduced Maker Wormhole, a solution that will let users bridge DAI between mainnet and L2 instantly and with ridiculously low fees (a fraction of a penny). The official launch is scheduled for Q1 2022, and it should work first on Arbitrum/Optimism, and then be deployed on other L2s. Even better, this Wormhole doesn’t require any liquidity at all! DAI will be burnt and minted on each side of the transaction by an oracle.

This will have a huge implication for all Ethereum L2s : no more waiting times for withdrawing, frictionless transfers of capital between layers, and extremely low fees to get started on L2s. And this is just one of the many exciting projects that are in the works for the Ethereum ecosystem. Those are not distant vaporware ; it’s happening right now, before our eyes. And I think a lot of people around here still don’t realize how close we are to this revolution.

(Here are more details for those interested.)

submitted by /u/busterrulezzz
[link] [comments]