The increasing number of applications and users on Ethereum definitely increases the load on the network while, so far, the capacity of the Ethereum network is still limited. Therefore, the cost of using it increases markedly with more and more users competing with each other to add transactions to the Ethereum network.
For that, the solutions offered by the developers came out. Ethereum 2.0 which is an upgrade/update of Ethereum which aims to increase the speed, efficiency, and scalability of the Ethereum network itself, so that Ethereum can process more transactions and reduce congestion.
One of the main reasons for this upgrade is scalability. The scalability achieved by Ethereum 1.0 can only support about 30 transactions per second and causes a “delay” while Ethereum 2.0 promises to be able to transact up to 100,000 transactions per second. The developers of Ethereum themselves introduced the concept of “sharding”, namely the existence of 64 new chains on the Ethereum network so that the network will be more secure and sustainable. With the Ethereum 2.0 upgrade, this network can be almost 100% energy efficient.
In addition to the impact of Ethereum 2.0 which promises to be able to process 100,000 transactions per second, other impacts of this upgrade can also create a much more sustainable network without mining, Introducing more smart contracts, and increasing ethereum real world utility.
Ethereum Layer 2 solutions basically give a lot about them by name. Layer 2 is a distinct network that runs on top of the main Ethereum network or layer 1. Ethereum layer 2 solutions remain on the Ethereum network in the form of Smart Contracts. The layer 2 solution does not require any modifications in the base level protocol to interact with the main network. Ethereum layer 2 scaling solutions can serve different functions such as off-chain computing and payment scalability.
The various Ethereum layer 2 solutions introduced here have great potential for the blockchain landscape in a positive way. Layer 2 solutions are basically the next big thing in ensuring the utilization of blockchain network resources. On the other hand, it is also important to note that many Ethereum layer 2 solutions are in development or testing stages. So, it may be some time before we see a complete layer 2 solution dominate the Ethereum landscape.