Vitalik Buterin, co-founder of Ethereum, has stated that when a Layer 2 scaling option such as the rollup is used to increase scalability and reduce transaction costs, crypto payments will notice a significant improvement.
According to reports, Buterin made this claim while speaking at the Korea Blockchains Week.
The co-founder believes that blockchain data compression methods must be used to improve scalability.
However, Buterin noted that rollups have continued to effectively reduce data size and transaction costs through zero-byte compression technology.
According to reports, Buterin stated,
“So today with rollups, transaction costs are generally somewhere between $0.25, sometimes $0.10, and in the future, with rollups with all the efficiency improvements, I talked about. The transaction costs can go down to $0.05, or even as low as $0.02, so much cheaper, much more affordable and a complete game changer. ”
As part of his argument, the brilliant co-founder of Ethereum pointed out that, while BTC was a store of value, it was designed to act as a means of sending money or transferring value from one person to another while providing a more affordable means of doing so.
Transaction fees have skyrocketed for a variety of reasons.
He noted,
“It’s a vision that I think has been kind of forgotten and I think one of the reasons it’s been forgotten is that it’s been priced out of the market.”
Buterin has disclosed that scaling solutions will help different assets like Bitcoin reclaim their major use cases by lowering transaction costs.
Buterin believes that lowering transaction costs will help drive the use of non-financial decentralized apps on Ethereum, such as domain name system (DNS) servers.
He stated,
“You actually have to send a transaction to create a DNS name, you actually have to send the transaction to recover your account, you have to send a transaction to meet some of these adjustments. If performing each of that surgeries cost about $11, people don’t go into it.”
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