The global Internet of Value needs to exceed 10,000 txs per second
Ethereum mainnet does ~10 txs per second
And there are absolutely no plans to change this!
Instead, Ethereum will follow a
"Rollup-Centric Roadmap" 🧵
1/17
Ethereum mainnet does ~10 txs per second
And there are absolutely no plans to change this!
Instead, Ethereum will follow a
"Rollup-Centric Roadmap" 🧵
1/17
Ethereum is like the Manhattan (of 1900s) of blockchains
High value, High demand
Everyone wants to build on Ethereum to leverage its battle-tested security
2/17
High value, High demand
Everyone wants to build on Ethereum to leverage its battle-tested security
2/17
But there's not enough space!
Several things compete for the limited space within the Ethereum blocks:
- Tx computation
- Tx data
- Consensus & settlement (validating the txs)
3/17
Several things compete for the limited space within the Ethereum blocks:
- Tx computation
- Tx data
- Consensus & settlement (validating the txs)
3/17
High demand for this space causes congestion on the Ethereum mainnet
This leads to low speeds and high tx fees
Just last week, the gas fees shot up to $142 for a swap on Uniswap V3 and $42 for an ERC-20 transfer
Because of ONE app!
4/17
This leads to low speeds and high tx fees
Just last week, the gas fees shot up to $142 for a swap on Uniswap V3 and $42 for an ERC-20 transfer
Because of ONE app!
4/17
Umm.. can't we simply increase the block size to include more data in each block?
Well, yes we can
But that would compromise on decentralization
Increasing block size = Fewer people can afford to run a node = Centralization
5/17
Well, yes we can
But that would compromise on decentralization
Increasing block size = Fewer people can afford to run a node = Centralization
5/17
So, wat do?
Instead of increasing block size, Ethereum builds skyscrapers on top of itself
Just like Manhattan!
6/17
Instead of increasing block size, Ethereum builds skyscrapers on top of itself
Just like Manhattan!
6/17
Manhattan didn't have enough land, so they made taller buildings
Ethereum can't increase blocksize, so we must pack the blocks more tightly
This is what rollups allow Ethereum to do
7/17
Ethereum can't increase blocksize, so we must pack the blocks more tightly
This is what rollups allow Ethereum to do
7/17
A 'Rollup-Centric Roadmap' includes offloading certain data from Ethereum blocks and storing it somewhere else
By the time Ethereum has achieved all things on this roadmap, it would be able to handle
🥁🥁🥁
100,000 txs per second!
(While maintaining elite security)
8/17
By the time Ethereum has achieved all things on this roadmap, it would be able to handle
🥁🥁🥁
100,000 txs per second!
(While maintaining elite security)
8/17
Here's what the evolution journey looks like:
1. The Ghost of Ethereum Past
Everything happens on the same layer (computation, data, consensus)
This provides ~10 TPS
9/17
1. The Ghost of Ethereum Past
Everything happens on the same layer (computation, data, consensus)
This provides ~10 TPS
9/17
2. Present-day Ethereum - The Dawn of the Rollups
Computation is outsourced to rollups (Layer-2s), and data storage & consensus stays on Mainnet
This allows for ~100 TPS
10/17
Computation is outsourced to rollups (Layer-2s), and data storage & consensus stays on Mainnet
This allows for ~100 TPS
10/17
3. Ethereum in the near future: Proto-Danksharding
Computation is outsourced to rollups, data is stored in temporary sidecars (called blobs) attached to the Mainnet, and consensus stays on Mainnet
11/17
Computation is outsourced to rollups, data is stored in temporary sidecars (called blobs) attached to the Mainnet, and consensus stays on Mainnet
11/17
4. Ethereum final form: Danksharding
Bigger blob sizes and further optimizations to allow for extremely high throughput via rollups
12/17
Bigger blob sizes and further optimizations to allow for extremely high throughput via rollups
12/17
By using rollups to scale the network, Ethereum can provide world-class throughput in combination with elite security
That is something NO OTHER blockchain can boast about
13/17
That is something NO OTHER blockchain can boast about
13/17
How do rollups really work?
Here's an ELI5:
14/17
Here's an ELI5:
14/17
And a bonus thread if you want to dive deep into ZK rollups:
15/17
15/17
In the next threads, I will elaborate on what the evolved forms (proto-danksharding & danksharding) look like and how they help Ethereum scale
16/17
16/17
If you made it till here and enjoyed the thread,
It would really help me out if you could like/retweet the first tweet (linked below)
Follow me @ShivanshuMadan and join me on this journey to learn the "tech" of it all
17/17
It would really help me out if you could like/retweet the first tweet (linked below)
Follow me @ShivanshuMadan and join me on this journey to learn the "tech" of it all
17/17
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