Vitalik Buterin explained what will increase transaction speed and reduce transaction costs on the Ethereum network. Buterin, who showcased the stacking technology on his blog, said it could improve Ethereum infrastructure up to 100 times.

With widespread use of DeFi, Ethereum users may have to pay $ 10 to complete a transaction. The increase in transaction costs (gasoline) would make some platforms like Uniswap “obsolete”. Vitalik Buterin believes that roll-up technology can solve this problem.

Transition from the first to the second layer

The Ethereum network is faster than Bitcoin, but can only handle 45 transactions per second. With the growth of the DeFi market, this capacity was insufficient and transaction costs started to increase. Ethereum developers aim to solve this problem with the Layer 2 mechanism.

What is called a cumulation; It is one of the elements belonging to the secondary layer (Layer 2). Layer 2 is a protocol located outside of a blockchain (off-chain) and lightens the processing load on this blockchain network. The load on the blockchain (in this case, Ethereum) is transferred to this Layer 2 protocol via a smart contract.

What is a roll-up and how does it work?

Keep some of the transaction data in Rollup Ethereum on the blockchain; It allows the calculations performed on this data to be transferred to the secondary layer. It is a hybrid mechanism in this regard.

The fact that some of the data is kept on the blockchain brings some restrictions on scaling. This restriction is the blockchain’s own bandwidth. However, the cumulation; Thanks to the compression method applied to the data, it allows transactions to be carried out much faster and at lower cost. More; Keeping the data on the blockchain allows it to be verified on the blockchain, and the use of layer 2 is therefore more secure.

Up to 100x improvement in Ethereum

There are two types of stacks: optimistic stacks and ZK stacks. Vitalik Buterin has the following views on these two types:

“Optimistic summary for short-term Ethereum Virtual Machine transactions; ZK rollup may be preferred for ordinary payment transactions. In the medium to long term, the ZK-SNARK technology will develop and the ZK rollup will be used for everything. “

Vitalik Buterin believes this technology could improve Ethereum 100 times on a large scale. Today, it is reported that the ethereum network, which can handle 45 transactions per second, can handle between one thousand and four thousand transactions per second with this technology. According to the founder of Ethereum, with the development of ETH 2.0 sharding methods, this can go up to 100,000 transactions per second.