In the fast-paced world of Ethereum layer-2 networks, the competition is heating up. With this, users are left with questions about the unique characteristics, use cases, and strategies employed by each network to attract more users to Web3. In a recent episode of Hashing It Out, Elisha Owusu Akyaw (GhCryptoGuy) engages in a thought-provoking discussion with Cartesi co-founders Colin Steil and Erick de Moura, focusing on a particular type of layer-2 solution: app-specific rollup protocols.
Cartesi’s team offers a promising solution to the challenges of computational scalability and programmability experienced by many applications. They have developed a network that empowers developers to create exclusive rollup chains tailored to their specific applications. This approach aims to address the scalability issues encountered during peak periods, where transaction fees tend to skyrocket and become unpredictable.
De Moura elaborates on the unique utility of app-specific rollups and emphasizes their role in mitigating scalability issues. When multiple applications compete for block space and numerous users attempt to include their transactions in the sequencer or blockchain, fees rise significantly. This shared rollup or block space leads to unpredictable and expensive fees, hindering user adoption and retention. Notably, certain applications, such as gaming platforms, suffer greatly due to these challenges. Given that most functionalities occur off-chain, placing the game economy on-chain within such an environment proves impractical.
Addressing the proliferation of layer-2 networks on the Ethereum blockchain, Cartesi’s team expresses their belief that the current surplus of protocols is temporary. According to them, specific protocols will eventually generate significant network effects, leading to mass migrations towards these networks. While different protocols are competing for dominance now, the industry will eventually consolidate around the most effective and widely adopted solutions.
For a comprehensive understanding of the discussion on app-specific rollup protocols and the broader context of Ethereum layer-2 networks, listen to the full episode of Hashing It Out on Spotify or Apple Podcasts. Additionally, Cointelegraph offers a diverse catalog of informative podcasts that delve into various aspects of the cryptocurrency and blockchain industry. Check out Cointelegraph’s Podcasts page to explore more engaging content.
As the Ethereum ecosystem evolves, layer-2 solutions continue to play a crucial role in enhancing scalability and addressing the limitations of the network. By exploring the unique nature and use cases of app-specific rollup protocols, developers and users can better navigate the evolving landscape of Web3 and unlock the full potential of decentralized applications.