Cartesi's Unique Approach to Scalability: App-Specific Rollups on Ethereum Layer-2 Networks
Summary:
The competition among Ethereum layer-2 networks is intensifying, with Cartesi's co-founders discussing their unique approach on Hashing It Out. They explained the use of application-specific rollup protocols to address scalability and programmability limitations. De Moura emphasizes the significant role of such rollups in addressing scalability issues when multiple applications and users are competing for the same block space. He cited gaming apps as examples that should avoid these environments. Despite the current surge of layer-2 networks on Ethereum's blockchain, Cartesi's team believes it's a temporary situation and that network effects will soon lead to mass migrations towards certain protocols.
In the escalating competition among Ethereum layer-2 networks, users grapple with understanding the differing characteristics, applications, and strategies to attract more users to Web3. During Episode 36 of Hashing It Out, Elisha Owusu Akyaw, also known as GhCryptoGuy, converses with Colin Steil and Erick de Moura, the creators of Cartesi, about app-specific rollup protocols.
The creators of Cartesi elucidate that their network was designed to tackle limitations relating to computational capacity and programmability, by enabling developers to establish dedicated rollup chains for their specific applications. The distinctive functionality, as per the team, could potentially solve the scalability problems evident during high-traffic times.
De Moura elaborates on the significance of application-specific rollups in addressing scalability issues. He clarifies that when multiple apps vie for block space, with numerous users striving to insert their transactions into the sequencer or blockchain, this subsequently causes the fees to escalate dramatically and unpredictably. This is a direct result of the simultaneous sharing of the same rollup or block space by applications and users.
This issue of scalability also complicates user acquisition and retention for some apps, as users are typically prepared to pay high fees for certain apps exclusively. De Moura cites gaming apps as examples that should be exempted from such surroundings, as off-chain operations are their primary mode, with the in-game economy being the sole on-chain process.
Addressing the emergence of multiple layer-2 networks on the Ethereum blockchain, the Cartesi team posits that the current number of protocols is possibly excessive, but this will only be true in the short term. They assert that the adoption of certain protocols on a broader scale will form network effects, leading to a migration of the majority towards these networks.
You can listen to Hashing It Out's entire episode on Spotify or Apple Podcasts. Additionally, you can also access Cointelegraph's exhaustive collection of informative podcasts on the Cointelegraph Podcasts page.
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Published At
11/9/2023 6:38:21 PM
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