Ethereum Upgrades & L2 Scaling
Ethereum’s upcoming Cancun upgrade includes larger “blobs” of data, increasing network capacity. However, analysts argue this boost is insufficient for the rapid transaction growth expected on layer-2 (L2) networks. L2s, built atop Ethereum, offer faster and cheaper transactions.
Capacity Concerns
The planned blob size increase, while significant, won’t keep pace with L2 demand. This could lead to higher L2 transaction fees, negating their cost advantage. Researchers suggest further scaling solutions are needed to maintain L2 affordability.
Data Availability Bottleneck
The core issue lies in data availability. L2s need to post transaction data to Ethereum for security. Limited block space creates a bottleneck, constraining L2 throughput. Even with larger blobs, this bottleneck persists, hindering L2 scalability.
Future Scaling Solutions
Developers are exploring alternative solutions like “danksharding,” a more advanced sharding technique. Danksharding promises greater data availability, but its implementation is further out on the Ethereum roadmap. Until then, L2s may face growing pains as they struggle to balance demand with limited Ethereum capacity.
