THELOGICALINDIAN - Renting aegis to Layer 2 networks has become a actual assisting business for Ethereum
With Layer 2 networks accepting cogent absorption in user activity, the gas fees Ethereum is raking in for renting its aegis are breaking almanac highs.
Ethereum Profits From Layer 2 Expansion
Layer 2 networks are spending almanac amounts of gas on Ethereum mainnet.
According to on-chain abstracts from Dune, Layer 2 networks are now spending added gas than anytime to achieve or prove transaction batches on Ethereum’s mainnet, with spending consistently before 10 billion gas back the alpha on May.
For instance, the accomplished bulk of gas anytime acclimated on the Ethereum mainnet to achieve Layer 2 arrangement affairs occurred this Wednesday—immediately afterwards Optimism launched its OP babyminding badge backward Tuesday. Specifically, all Layer 2 networks accumulated spent about 3.95 billion of the complete 100 billion circadian gas complete on Ethereum, accounting for about 3.95% of the gas spent on the arrangement that day. To put the advance amount into perspective, the complete account gas spent by Layer 2 networks on Ethereum in May 2021 was about 5 billion, admitting in May this year, it was about 52 billion, appearance over a tenfold access in complete gas acceptance terms.
When Ethereum cartage increases it accrues amount to all ETH holders. This is because the abject gas fees on Ethereum are burned, abbreviation the all-embracing ETH accumulation and appropriately accretion the amount of all actual tokens. In this way Ethereum “profits” as Layer 2 networks use its blockspace to achieve affairs added calmly than can be done anon on mainnet.
Layer 2 is an awning appellation for blockchain ascent solutions that handle affairs on abstracted networks again accelerate them aback to Ethereum mainnet for settlement. For example, Optimism and Aribrum are Layer 2 networks based on a cryptographic technology accepted as Optimistic Rollups that array affairs calm off-chain (on their abstracted networks) and again achieve the bundles in a distinct transaction on the Ethereum mainnet to abate its transaction load.
Unlike alleged sidechains like Polygon’s Matic blockchain, which accept their own accord mechanisms, Layer 2 networks booty the transactional amount off of Ethereum but borrow or accede its aegis by ultimately clearing their batches on mainnet. This leads to an absorbing activating area Layer 2 affairs become more cheaper for users, but mainnet affairs abide abundantly big-ticket to pay for Ethereum’s ample aegis expenditure.
Commenting on the billow in Layer 2 acceptance on Twitter today, Polygon co-founder Sandeep Nailwal speculated that over time, Ethereum ability advance from a user-focused to a network-focused alternation area it primarily settles batched Layer 2 arrangement affairs instead of individual, user-generated mainnet transactions. “As I additionally said afore that #Ethereum is transitioning from a B2C(user to chain) business archetypal to B2B(chain to chain) model,” he said, abacus that eventually, “majority of the Eth’s gas would be acclimated by L2 chains.”
Disclosure: At the time of writing, the columnist of this allotment endemic ETH and several added cryptocurrencies.
