Businesses to Benefit from Ethereum and the Many Eth-based Scaling Solutions
As Ethereum continues to mature and advance, businesses have even more reason to be excited about investing in and building on the network. Indeed, global business blockchain spending is expected to reach almost $19B by 2024, according to IDC. Ethereum Layer 2 (known as “L2”) scaling solutions go a long way in breaking down barriers for businesses to build on Mainnet. To start, L2 solutions are designed to address scalability, offering more throughput than Ethereum itself (Layer 1, or L1) by many orders of magnitude. L2 solutions also improve speed and latency issues, with some L2 solutions providing “instant” transaction confirmations with an economic guarantee that the transaction will be included in the next L2 block. Another benefit we’re seeing as Ethereum continues to evolve is the transition from Proof of Work to Proof of Stake, which makes Ethereum much more energy-efficient and alleviates concerns about waste and environmental impact. On a similar note, L2 was specifically designed to address the challenge of rising Ethereum gas prices; anchoring L2 transactions on L1 consumes much less gas than conducting the transactions directly on L1, which results in significantly reduced L2 transaction costs. So, whether it’s zero-knowledge techniques for privacy and confidentiality or increased scalability with rollups and L2, Ethereum is crossing the chasm as a maturing technology, and business use reflects this.
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