Ernst & Young (EY) to secure the Ethereum (ETH) blockchain with Nightfall 3
The Ethereum blockchain has been a pricey one for investors to use. To reduce the costs and make the blockchain more accessible, Ernst & Young (EY) unveiled Nightfall 3. Its goal is to lower transaction fees without compromising privacy.
Reduce costs at all costs
Nightfall 3 will evolve in the footsteps of its 2019 predecessor, “Nightfall”. It is a ZK-Optimistic Rollup protocol combining a set of transaction verification systems. In short, it is designed to handle operations on the ETH network better.
In order to optimise user security, EY plans to shift the verification process onto the “Layer 2” sidechain, which makes it possible to verify transactions that have already been processed. The major advantage of Nightfall 3 is that it allows the users to correct bad blocks efficiently.
The system is presented as a solution for blockchain users to mitigate the high transaction costs. While simple token transfers require around 21,000 gas, more complex transactions may cost up to 100,000 gas.
The new protocol will reduce the fees to around 8,200 gas per transaction. According to the press release, that is “almost one-eighth of the cost needed to make a conventional, public ERC20 token transfer”.
ETH users remain hesitant
EY press release reads: “ZK-Optimistic roll-ups are currently among the most effective in balancing security incentives and mathematical efficiency for running private transactions on the public Ethereum network”. Paul Brody, EY Global Blockchain Leader, added: “As we have in the past, we are again contributing this code into the public domain to speed up enterprise adoption of this technology”.
The rising cost of ETH transactions has been bothering the network’s users for years. On May 12, when the digital currency hit its all-time peak of $4,164, transaction fees had also gone up to $69.92 (~£50.47). However, they have gone down since then. According to BitInfoCharts, today the transaction fee is $3.04 (~£2.19). However, experts anticipate this figure to soar again in the future.
The Ethereum blockchain is slated to continue gaining momentum. Ernst & Young is now planning to strengthen the security of the system with the help of Nightfall 3.