ETHEREUM UPGRADE || 10% beneficiary to @tron-fan-club

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There is no doubt that Ethereum has its problems but there is a solution to that with help of layer 2. Anyone can invest in these layer 2 solutions, you just don't which layer two there will benefit from the huge share. To give you a better understanding of why we need layer 2, you have to understand the problems Ethereum is confronting. In the upcoming update to Ethereum, there will be huge development with the energy efficiency up to 99% with the help of Proof of Stake. With the update of Proof of State, miners will no longer be needed, and also sharing will be part of the improvements.

Sharding increases transaction speed by using multiple mining blocks, this makes the blockchain process transaction faster because there will be less congestion in the blockchain. Ethereum will be expanding the block up to 64 mini blockchains. Unfortunately, Ethereum won't reduce the transaction fee and this is because all the update is on the consensus layer, not the Executive layer. Transaction fees are paid on the Execution, so the high gas fee will continue. With this upgrade, the transaction fee will be going to the people staking and not the miner anymore. Unfortunately, not everybody is rich to pay high transaction fees.

LAYER 2s

Layer 2s is the solution to Ethereum's high gas fee and that is why we have great projects like Polygon, Optimism, and so on. These wonderful projects are built on Ethereum for fast transaction speed and reduced gas fees. If you hope the Ethereum gas fee will be cheap any time soon, you might be wrong because Ethereum will not be cheap any time soon. Since the Ethereum gas fee will not be reduced any time soon, we will continue to see more growth in the Layer 2 project.

You might know the problem layer 2 projects solve. The layer 2 projects save Ethereum user transaction fees and they can achieve this with something called Roll Up. When it comes to the different types of Roll Up, do we have Optimistic and Zero-knowledge? There are not many things to talk about in this, Zero-knowledge roll-up is a little bit less secure and more efficient while Optimistic roll-up is not very fast but they have a high level of security. The big question is, how does this so call roll-up reduce gas fees with roll-up?

To explain how a rolling work, let's assume your job at your workplace is to add up figures and every time you click the equal sign, you are changing people. Then, another person comes in and tells you to let him do the work. He will add all the numbers and then send you the total, you can just pay the person once instead of charging customers every time. That is the job of Roll Up. They would gather many transactions, and process them before sending them to the Ethereum blockchain. This makes the transaction fast and also has good security.

As you may know that blockchain has an issue of Trilemma and this is about decentralization, security, and scalability. Scalability is what layer two specialize on because it relies on Ethereum's strong security. Although layer two has its great advantages, it also has some downsides.

DOWNSIDE

• Layer 2 can remove liquidity from the primary blockchain because it came popular like the Ethereum blockchain, more money than the system added to work will be taken away from it.

• Things might not go on very well because the Ethereum blockchain was developed to work with other protocols nicely.

• Security risk can also be a big problem because more money is moving in and out of the network could lead to some security risks.

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The different layer 2 have their transaction fees. Even some layer 2 like Arbitrum and Optimism are ranked high and that is very interesting. You should that all layers two are under development and have some potential risks related to use. The risk could be related to code upgrade and when they want to upgrade the protocol, all transactions will be frozen. Although, Polygon is a layer 2 solution to Ethereum it is also a sidechain. Other side chains like Optimism, dYdX, Arbitrum, Loopring, and so on rely on Ethereum security while Polygon security is different. Polygon is a good network with large daily transactions and unique addresses.