Vitalik Buterin proposes moving NFT from Ethereum (ETH) onto the Layer 2 ecosystem

Thu 09 Sep 2021 ▪ 13h43 ▪ 3 min read — by Siobhan Jones

Vitalik Buterin, crypto billionaire and one of the co-founders of Ethereum, shared the idea of moving the NFT ecosystem onto the Layer 2 (L2) protocol. According to Buterin, this should help reduce gas consumption and the size of commissions on the main Ethereum network.

In search of a solution

While Solana (SOL) is catching up with Ethereum and pushing for transaction speeds that have yet to be achieved in the Ethereum network, one of the co-founders of ETH, Vitalik Buterin, is struggling to create a solution that will help the network he created to work properly.

According to Buterin, an organised transition of the NFT ecosystem onto the Layer 2 would significantly reduce fees in Ethereum.

L2 is a secondary protocol built on top of an existing blockchain system. In other words, we are talking about a scaling mechanism for the Ethereum network that was not originally built into its structure.

“We need to move NFTs onto the Layer 2 ecosystem to cut fees. However, doing that *right* requires good cross-rollup portability standards, so the ecosystem can avoid getting locked into one particular L2,” Buterin said.

He also added that to fix this problem, it would take a coordinated transition of NFT to a unified platform, but even this solution has some important drawbacks:

“All existing major EVM-capable rollup platforms have backdoors, centralized sequencing other training wheels, and it’s risky to commit an entire ecosystem to a single rollup while there is uncertainty about how the rollup will graduate beyond such features. No part of the NFT ecosystem, or even the entire NFT ecosystem, is a closed world; they will need to interact with other parts of Ethereum.”

In an attempt to come up with a solution and make Ethereum work properly, Vitalik Buterin published an article in which he shared his insights with the community.

Users were quick to join the conversation and even offered the crypto billionaire their own solutions to the network’s problems. So it is quite possible that very soon we will see another strong push from Ethereum in terms of both technology and price.

Subscribe to our daily and weekly newsletter service to receive a digest of the latest news in the cryptosphere and never miss out on any of the Cointribune's highlights!

User Image
Siobhan Jones

Hi everyone, thanks for reading my article! Join me on my journey to crypto enlightenment, we can always learn something new from each other – no one person has all the knowledge in the world.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

Prices & Indices

BITCOIN (BTCUSD) $30,597.85 2.57%
ETHEREUM (ETHUSD) Ξ $2,099.99 3.92%
DEFI (DEFIPERP) $4,006.80 8.08%
MARKETS (ACWI) $90.27 1.6%
GOLD (XAUUSD) $1,825.07 0.06%
TECH (NDX) $12,498.83 2.08%
CURRENCIES (EURUSD) $1.05 0.97%
CURRENCIES (EURGBP) £0.845110 -0.22%
CRUDEOIL (USOIL) $114.42 0.47%
IMM. US (REIT) $2,503.13 0.15%
The percentage expresses the change over the past 24 hours BUY CRYPTOS WITHOUT RISK
Newsletter

Receive the latest and best crypto news directly to your inbox et tentez de gagner 0.2 ETH en vous inscrivant aujourd'hui

Crytocurrency Guides
You must complete the form to receive your document.