Everything will change for Ethereum as a major layer two scaling protocol will be going live. This means that major Ethereum decentralized applications will be able to scale, and the price of the gas fees will gradually reduce.
Ethereum has been in dire need of a scaling solution ever since the gas fees went so high that people stopped trading on the network, and some even pulled out; the protocols on the Ethereum ecosystem also suffered this.
A major layer two scaling solution, Arbitrum, will be going live. Arbitrum is an optimistic roll-up scaling solution launching later today, 28th of May, 2021. Everything will change for Ethereum when projects begin to integrate and deploy this technology.
Optimism, an Ethereum scaling solution, was scheduled to launch about a month ago, but the launch was delayed to August. The good thing is that Optimism was not the only layer two scaling solution working on roll-up technology.
Roll-up technology directly integrates into the Ethereum main net and becomes part of the Ethereum software stack, allowing the technology to integrate directly into the Ethereum main net.
Arbitrum launching will allow Ethereum applications to scale by 100x; this means that we will see major Ethereum applications bring their fees down.
One thing to note, Hayden Adams, the creator of the Uniswap Protocol, said that if the snapshot passes, he intends to support the community by deploying Uniswap Version 3 smart contracts to Arbitrum. This is big news because it means that Uniswap will integrate layer two.
This is exciting because when the markets start going crazy, the fees on Uniswap can be outrageous, which is painful. Uniswap fast-tracking Arbitrum support for a Layer two scaling solution will reduce the fees on Uniswap from about forty dollars to a few cents.
It will be a major change in the market and what is interesting about all this is that it is not only Uniswap, but we also see many other projects lined up. Off-chain labs, the people behind Arbitrum said that 150 different projects had requested early access to the software. This means that many Ethereum protocols and applications are lining up to join the train.
We will have many of them working with Arbitrum for more native layer two integrations. We are likely to see Ethereum gas fees going down significantly in the next future because the more we shift demand to layer two, the lower the fees will be on layer one.
Most people hope that among those 150 protocols, the likes of Aave, Synthetix, Balance, Curve finance, and the other big Ethereum protocols will be included in layer two because they are amazing services that regularly deliver. They suffer because the gas fees have been very high.
The gas fees make it difficult for people to use these protocols; this is why Polygon has gained popularity because you can use Aave on Polygon at a very affordable price. This is big news and a big deal for Ethereum; we only hope there will not be any impromptu delays.
