Coinbase boosts Ethereum with integrated Layer-2 system
Coinbase Wallet has integrated Layer-2 solutions from Ethereum’s testnet Optimistic.
Vitalik Buterin said wallets are the top priority in terms of scaling.
The Optimism testnet is already active on Synthetix
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Coinbase, a giant cryptocurrency exchange, recently implemented a Layer-2 (L2) scaling solution. This will allow for faster and cheaper transactions on BitQT from its wallets, as this technology begins to be deployed on a larger scale.
An announcement made on October 14 revealed that Coinbase’s wallet fits into the Optimism’s Optimistic Rollup test network. It won’t be on the exchange itself, but on the non-private wallet and dApp browser to allow users to view balances and make transactions on the Optimist Network.
The company said it was excited to help help Ethereum evolve:
We have integrated local support to testnet
OptimismPBC, to help early adopters test Optimist Rollups on the Coin Database Wallet. Rollups offer fast, inexpensive, and scalable app transactions.
We are happy to contribute to the expansion of Ethereum!
Optimistic for ETH 2 network
Plasma Group’s Layer-2 developers announced the launch of their Optimism testnet for Ethereum in late September. The team has developed a system called OVM, which is a fully-featured Ethereum Virtual Machine (EVM) compliant runtime environment designed for Layer-2 systems.
The end goal is to reduce congestion on the Ethereum network, which is essential for the future growth of the ecosystem. Over the past few months, Ethereum users have come to grips with how demand can cause congestion, causing transaction fees to skyrocket .
On two occasions in September, the average price of gas hit double-digit levels as DeFi investors took advantage of the latest yield mining incentives . At the time of this article’s layout, the average transaction fee had dropped to around $ 2, which is still far too high from a practical standpoint.
In her latest Defiant update, industry expert Camila Russo observed that Coinbase is the second major centralized exchange after Bitfinex to announce plans to pull some of its trades off the Ethereum main chain.
At the ETHG World Summit, Ethereum co-founder Vitalik Buterin highlighted the need to push wallets as the primary target for the migration to rollups.
When it comes to migration to rollups, the majority of the answer lies in a holistic approach at the ecosystem level, the first target being the portfolio.
Expanding Layer-2 options
Optimistic’s OVM was first tested on Uniswap’s Unipig Layer-2 decentralized exchange, launched for demo at the end of 2019.
The DeFi Synthetix protocol was the system’s first real test when it launched testnet to the public at the end of September, offering 200,000 SNX as a reward to participants.
The second phase of the testing process was launched on October 14. In particular, it enabled the deposit of SNX test tokens by airdrop and the migration from L1 to L2.
The good folks at @CoinbaseWallet have added Synthetix support on Ethereum’s L2 OptimisticPBC testnet for Android and iOS!
Other L2 solutions are already in operation, such as Matter Labs zkSync payment gateway, Ethereum zkRollup Loopring exchange and payment protocol, and plasma-enabled OMG network.