How ETH upgrade changes Layer 2 ecological landscape

Ethereum upgrade has had a profound impact on the Layer 2 ecosystem, which is mainly reflected in four aspects: First, the upgrade improves the scalability and performance of Layer 2, meets the growing transaction needs, and promotes innovation in technologies such as zk-Rollup; Second, the upgrade enhances the security of Layer 2, and reduces risks by sharing the security mechanism of the Ethereum main network and promoting the integration of security technologies; Third, the upgrade improves the interoperability of Layer 2, optimizes cross-layer communication, and promotes collaboration between different Layer 2 solutions; Finally, the upgrade reduces the development cost and difficulty of Layer 2, provides a more friendly development environment, and promotes open source and sharing. In short, the upgrade of Ethereum has laid a solid foundation for the prosperity and development of the Layer 2 ecosystem.

The changes in Layer 2 ecosystem by ETH upgrade are mainly reflected in improving scalability, security, interoperability, etc., providing developers and users with a better experience. The following is a specific analysis:

• Improving scalability and performance
  Increasing the demand for Layer 2: Before Ethereum upgrade, the problems of network congestion and high gas fees were prominent, prompting developers and users to seek Layer 2 solutions. Although the performance has been improved after the upgrade, Layer 2 can still provide higher transaction processing capabilities and lower costs, and its demand is still strong. For example, Rollup-based Layer 2 solutions such as Optimism and Arbitrum can package a large number of transactions in Layer 2 for processing, and then submit the results to Layer 1, greatly improving transaction efficiency.
  • Promote Layer 2 technological innovation: Upgrading brings new opportunities to Layer 2, prompting developers to explore better expansion technologies and solutions. For example, zk-Rollup technology continues to develop, and the transaction verification efficiency is improved through zero-knowledge proof technology, without storing all transaction data in the Ethereum main chain, which improves scalability while ensuring security.
• Enhance security and trust
  • Shared security guarantee: After Ethereum is upgraded to PoS, network security has been greatly improved, and Layer 2 can share the security mechanism of the main network. Layer 2 transactions ultimately need to be verified and confirmed on the Ethereum main chain. The improvement of main chain security makes Layer 2 users and developers more confident, reducing risks such as smart contract vulnerabilities and hacker attacks.
  • Promote the integration of security technologies: The upgraded security features provide the basis for Layer 2 to introduce new security technologies. For example, some Layer 2 projects have begun to explore the combination of multi-signature technology, threshold signatures, etc. with Ethereum's security mechanisms to further improve asset security and transaction reliability.
• Improving interoperability
  • Optimizing cross-layer communication: Ethereum upgrade provides a better foundation for communication between Layer 2 and Layer 1 and different Layer 2s. New technologies and protocols make cross-layer communication more efficient and secure. For example, through the upgraded smart contract interface and messaging mechanism, users can more easily transfer assets and call smart contracts between Layer 1 and Layer 2.
  • Promote collaboration between Layer 2: Upgraded Ethereum provides standards and frameworks for interoperability between different Layer 2 solutions, allowing different Layer 2 projects to better collaborate and interact. Trading platforms such as dYdX can achieve rapid transfer and transaction of assets between different Layer 2s, improving the liquidity and user experience of the entire Layer 2 ecosystem.
• Reduce development costs and difficulties
  Provide a more friendly development environment: After Ethereum upgrades, development tools and frameworks are constantly improved, providing Layer 2 developers with a more convenient and efficient development environment. Developers can use upgraded smart contract development languages ​​and tools to build and deploy Layer 2 applications more quickly, reducing development thresholds and costs.
  • Promote open source and sharing: The upgraded Ethereum community is more active, with the increase in open source projects and code sharing. Layer 2 developers can learn from and use existing open source code and technologies to accelerate project development and promote innovation and development of the Layer 2 ecosystem.

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