The decentralized and open-source blockchain having smart contract functionality, Ethereum, is about to undergo a significant upgrade which is called the “Merge” to speed up and save energy on the blockchain.
With the “Merge”, the Proof-of-Stake (PoS) consensus model will replace the Ethereum blockchain’s current Proof-of-Work (PoW) consensus mechanism. PoS is anticipated to be more rapid and have higher energy efficiency.
An IsraelI software firm, StarkWare Industries, which deals with difficulties in scaling blockchain, unveiled a new recursive proof in the previous week that it claimed may combine not just thousands, but millions of Non-Fungible Token (NFT) mints into a single transaction, hence accelerating the scalability of Layer 2.
A general term used to refer to blockchain scaling techniques is Layer 2, which is the connected network responsible for off-chain transactions. The Layer 2 solutions increase the scalability of the network and processing speed of transactions, and are constructed on top of the Layer 1 blockchain, which is the primary blockchain network or base network, such as Ethereum, responsible for on-chain transactions.
Eli Ben-Sasson, who is the co-founder and President of StarkWare Industries, made a statement saying that the company can now have 10s of millions of Non-Fungible Token (NFT) mints into a single recursive proof, and consequently into a single Ethereum transaction, thanks to the activation of recursion. Although the technology is there, they aren’t currently deploying recursion at this level of intensity, however, they will when traffic warrants it. The scalability of blockchain is mostly about constructing now to avoid bottlenecks in the future.
By grouping a large number of transactions off-chain and dispatching the bundle in as a single transaction, rollup technologies reduce the burden on the key Ethereum chain. The data in every bundle is verified by a network of validators using optimistic rollups, although there will be a delay if the validators wish to confront the data. Prior to the bundle reaching the Ethereum blockchain, zero-knowledge (zk) rollups, which are also known as validity rollups, utilize cryptography to validate it mathematically.
Developers and VCs have expressed a keen interest in rollup technology. At a 8 Billion US Dollar valuation in the month of May, StarkWare Industries raised 100 Million US Dollars in investment, increasing its last funding round’s price by fourfold.
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