In this week’s article, I would like to tell you about ELLS, which functions like a new superhero in the background of the Ethereum ecosystem. In addition to being a research article, this is open to everyone’s comments regarding the inclusion of new protocols into the ecosystem. We have full faith in the power it will add to the Ethereum ecosystem and the DeFi concept.
What is Ethereum Layer 2 Solutions (ELLS) and What Is Its Main Purpose?
Ethereum Layer 2 Solutions (ELLS) are solutions developed to ease the transaction load and increase scalability on the Ethereum blockchain.
The main goal of ELLS is to overcome some of the limitations of Ethereum and make it faster, cheaper and scalable. This is achieved by the following methods:
State Channel: Transactions are done off-chain; only the results are recorded on the blockchain.
Plasma: In the blockchain, subchains are created in a “tree” structure.
Sidechains: Some transactions are moved to different blockchains.
Rollups: A large number of transactions are added to the main chain in a bundle.
Thanks to these solutions, transaction speed and capacity increase, transaction costs decrease, and scalability is achieved without harming decentralization.
This makes Ethereum more useful for decentralized applications. The development of ELLS is critical to the Ethereum ecosystem.
What are the Advantages of ELLS for the Ethereum Ecosystem?
Performance and Scalability: Processing speed and capacity increases with ELLS.
Low Fees: Transaction fees are reduced because transactions are transferred in packages.
User Experience: User experience improves thanks to fast and cheap transactions.
Developer Participation: As scalability increases, new developers and projects join the ecosystem.
Value Preservation: Current users are retained in the ecosystem while the value of Ethereum is preserved.
Decentralization: Since ELLSs are also decentralized, the basic feature of the ecosystem is preserved.
Future-oriented Infrastructure: With a scalable infrastructure, solid foundations are laid for the future of Ethereum.
Effects of ELLS’s Decentralized Structure on the Ethereum Ecosystem
No Loss of Trust: Since ELLS is decentralized, users do not lose trust in the product.
Distribution of Control: The autonomous structure of the ecosystem is preserved since it is not controlled by any third party.
Value Flow: Money and value circulate seamlessly within the ecosystem.
No Hierarchical Structure Formed: Power is distributed through different L2 solutions.
Decentralization Risk: The decentralization of L2 solutions protects the ecosystem from this type of risk.
Ease of Editing: Its decentralized structure makes editing easier.
As a result, ELLS’s decentralized structure preserves and enhances the core features of the Ethereum ecosystem—decentralization, distribution of control, and trust—and provides critical benefits to the ecosystem.
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