A lot of so-called experts are still concerned over Etheruem’s potential lack of scalability. This topic recently received some mainstream media coverage, which shows the need for proper solutions. There are several layer-two solutions which run on top of Ethereum, each providing a lot of potential promise. The following solutions are ranked based on their mainstream appeal factor.
On paper, Abacus is designed to become an identity and compliance protocol for permissioned tokens. As such, its overall mainstream appeal may be somewhat limited at first sight, although no one knows how this particular industry will evolve exactly. Through the project’s SDK, the level-two solution on top of Ethereum offers a way to verify identities through KYC and AML services, and linking off-chain data to on-chain entities.
The bigger question is whether or not developers and service providers will explore these options accordingly. It is an interesting way of verifying one’s identity pertaining to smart contracts and preventing certain types of attacks from happening. For dApp developers, Abacus can also introduce a lot of opportunities. Regular consumers will not necessarily see the appeal of this technology, albeit most of them may end up using this layer-two solution without even realizing it.
Speeding up Ethereum transactions is one of the ongoing struggles as of right now. More specifically, there is a lot of research and work that needs to be done to make this happen. Connect enables lightning-fast transactions for Ethereum project users. In theory, it is a layer-two scaling solution which achieves what Ethereum itself can’t right now, although that situation will change over time.
#2 Liquidity Network
Being able to complete Ethereum transactions without gas fees is an idea a lot of people support. The network itself will not facilitate such transactions anytime soon, although the Liquidity Network layer does. It offers simple and scalable payments through its off-chain functionality. Additionally, it provides users with the Liquidity DEX – an off-chain exchange which is capable of supporting different blockchains at the same time.
As trading remains an integral part of any cryptocurrency ecosystem, it will also be the aspect most consumers flock to over the coming years. That may potentially be good news for the Airswap team, as their layer-two Ethereum-based solution aims to unlock the future of trading. It is a platform which currently lets users trade ERC20 tokens in a decentralized peer-to-peer manner.
With numerous tokens being supported as of right now, the platform unlocks a lot of different trading pairs traders can explore over time. There are still numerous tokens which need to be added, and the Airswap team is working on expanding their current offerings accordingly. It can become a very powerful alternative to centralized exchanges in the coming months and years.
How do you think Ethereum should solve its scalability issue? Do you think one of the above appliations could be the solution? Let us know in the comment section below.