In this week’s article, I would like to tell you about ELLS, which functions like a new superhero in the background of the Ethereum ecosystem. In addition to being a research article, this is open to everyone’s comments regarding the inclusion of new protocols into the ecosystem. We have full faith in the power it will add to the Ethereum ecosystem and the DeFi concept.
What is Ethereum Layer 2 Solutions (ELLS) and What Is Its Main Purpose?
Ethereum Layer 2 Solutions (ELLS) are solutions developed to ease the transaction load and increase scalability on the Ethereum blockchain.
The main goal of ELLS is to overcome some of the limitations of Ethereum, making it faster, cheaper and scalable. This is achieved by the following methods:
State Channel: Transactions are made off-chain; only the results are recorded on the blockchain.
Plasma:In the blockchain, sub-chains are created in the “tree” structure.
Sidechains:Some transactions are moved to different blockchains.
Rollups:A large number of transactions are added to the main chain as a bundle.
Thanks to these solutions, transaction speed and capacity increase, transaction costs decrease, and scalability is achieved without harming decentralization.
This makes Ethereum more useful for decentralized applications. The development of ELLS is critical to the Ethereum ecosystem.
What Are the Advantages of ELLS for the Ethereum Ecosystem?
Performance and Scalability:With ELLS, processing speed and capacity increases.
Low Fees:Transaction fees are reduced as transactions are transferred in packets.
User experience:User experience improves with fast and inexpensive transactions.
Developer Participation:As scalability increases, new developers and projects join the ecosystem.
Value Preservation:Existing users are retained in the ecosystem, while the value of Ethereum is maintained.
Decentralization:Since ELLSs are also decentralized, the essential feature of the ecosystem is preserved.
Future-proof Infrastructure: With a scalable infrastructure, solid foundations are laid for the future of Ethereum.
Effects of Decentralized Structure of ELLS on Ethereum Ecosystem
No Loss of Trust:Because ELLSs are decentralized, users do not lose confidence in the product.
Control Distribution:The autonomous structure of the ecosystem is preserved as it is not controlled by any third party.
Value Stream:Money and value circulate seamlessly through the ecosystem.
Hierarchical Structure Does Not Form:Power is distributed through different L2 solutions.
Centralization Risk:The decentralization of L2 solutions protects the ecosystem from such risk.
Ease of Editing:Its decentralized structure makes arrangements easier.
As a result, ELLS’s decentralized structure preserves and enhances the core features of the Ethereum ecosystem—decentralization, distribution of control, and trust—and provides critical benefits to the ecosystem.
