Ethereum Scalability Problem Solvable by Layer 2 Solutions: Vitalik Buterin
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The scalability problems plaguing Ethereum (ETH) have remained a pertinent topic among DeFi enthusiasts and ETH supporters for a long while.
Ethereum CEO Vitalik Buterin shared some of his thoughts on the matter yesterday at the annual Shanghai Blockchain Week conference. Buterin opened his speech at the event with talks about the future of Ethereum scaling.
The CEO asserted that the only way to safely improve Ethereum’s scalability without tampering with the current decentralization level is to employ Layer 2 solutions.
Buterin acknowledged the pressing need to make the ETH network more scalable and admitted that Ethereum’s native scaling solutions through sharding would take a long while.
The ETH co-founder proposed using Rollups, a prominent Layer 2 solution that deals with transactions outside the Ethereum chain and posts them on the chain. Buterin asserted that this Layer 2 solution could drastically improve Ethereum’s scalability, thereby solving many of the problems rooted in that factor.
That said, the Ether boss has proffered this solution in the past, citing its numerous benefits for the ecosystem. Speaking on a Tim Ferris podcast in March, Buterin asserted that Rollups could scale the network by 100x in a few months.
Key Ethereum Levels to Watch — October 27
Following a retest of the $4,370 – $4,330 axis earlier today, ETH has formed a double top pattern and has acted accordingly; in a bearish manner. The largest altcoin fell to the $3,935 low a while back before jumping back above the $4,000 support.
That said, I expect to see a bearish continuation into the $3,970 – $3,840 consolidation area over the coming hours and days, followed by a healthy rebound to the $4,3000 area before month-end.
However, a sustained break above the $4,100 figure in the near term could stall the current bearish trajectory and push ETH towards the critical $4,370 level.
Meanwhile, my resistance levels are $4,100, $4,200, and $4,300, and my support levels are $4,000, $3,900, and $3,800.
Total Market Capitalization: $2.48 trillion
Ethereum Market Capitalization: $474.3 billion
Ethereum Dominance: 19.1%
Market Rank: #2
