Ethereum’s New Scaling Testnet And Its Upgrades

Ethereum is one of the most widely used open-source blockchain networks globally.

It is one of those blockchain applications that fall under the monolithic type.

Ethereum provides its security, maintains its data availability, and executes transactions on its block.

Due to its monolithic nature, Ethereum is characterized by high transaction fees and slow execution.

These characteristics pose setbacks to investors and holders of ethereum during transactions.

These prompted the need to develop scaling solutions to reduce the transaction fee, allow for faster transactions and improve output.

Off-chain scaling and On-chain scaling are the significant types of scaling testnets.

Sidechain, rollup, and sharing are among the scaling testnet upgrades for ethereum.

Experts and developers of blockchain technology are always looking for ways to improve the existing protocols and tools.

Blockchain platforms such as ethereum are monolithic and decentralized. Transactions involving ethereum are slow and attract high transaction fees.

To help solve these issues synonymous with Ethereum, blockchain developers have developed different tools and protocols called scaling testnet solutions.

We shall look at the nature of ethereum and why this blockchain app needs testnet scaling solutions.

The Nature Of Ethereum And Why It Needs Testnet Scaling Solutions

Ethereum is a monolithic blockchain app. This blockchain platform provides its security, maintains its data availability, and executes transactions on its block independently.

Due to Ethereum's monolithic nature, it comes with several limitations and restrictions. These limitations include scarce block space at the execution layer and transaction congestion.

The adverse effect of this monolithic nature of Ethereum includes high transaction fees and gas fees for users.

To help address this monolithic nature and find alternatives that will allow you to seamlessly execute multiple transactions on ethereum and reduce the transaction cost, experts have come up with some scaling solutions (over the years).

Generally, scaling solutions in cryptocurrency include methods and protocols to allow for a system's expansion. Scaling solutions aim to improve output and efficiency while maintaining the existing operations.

Over the years, scaling solutions in the cryptocurrency have taken the form of second-layer protocols, including side chains and off-chain layers.

These second layer protocols do not stand on their own, and they are built on an existing chain and designed to increase transaction output.

Second layer scaling solutions include state channels, rollups, blockchain interoperability, Sharding, and alternative cryptographic functions.

Having identified what Scaling solutions are in general, we can move to the various scaling testnet in Ethereum and the upgrades over the years.

The Ethereum Scaling Testnets And Their Upgrades

Developers of scaling testnets in ethereum have pioneered several solutions. These scaling testnets are in different sizes, shapes, and functions.

Most of the ethereum testnet solutions serve as an ethereum-centric execution layer, and these execution layers are developed to offer inexpensive and fast crypto transactions.

Industry players and experts classify Scaling solutions in ethereum into two. They are Off-chain scaling and On-chain scaling.

The On-chain Scaling
On-chain scaling solution in ethereum is the direct modification made to a blockchain app (ethereum in this instance). The on-scale testnet solution helps to improve output and increase efficiency.

The Off-chain Scaling
Off-chain scaling in ethereum is any scaling testnet that offers external execution.

Off-chain scaling is a layer two solution developed to optimize the capabilities and improve the efficiency of an existing layer ( Layer 1/ L1) in ethereum.

The off-chain solutions in ethereum include rollups and validiums. Both rollups and validiums are the main short-term scaling testnet for ethereum, while Sharding is the blockchain network's long-term scaling solution.

At this juncture, let's identify how these major scaling testnet work.

SideChains
Sidechains are one of the Scaling testnet operations for Ethereum. The usage of SideChains is to interconnect multiple blockchain applications with ease.

When you use sidechains to connect blockchain apps, each will retain its independent consensus mechanism. By keeping their consensus mechanisms, the vulnerability will not affect others.

Sidechains come in different specifications, and they can be independent blockchain or bespoke blockchains. The latter is mainly designed to cater to Ethereum transactions. The most popular side chain tool for ethereum is Plasma.

The independent SideChain compatibility with ethereum stems from their support for Ethereum Virtual Machine (EVM), and this support makes it easy to connect Ethereum across blockchain platforms.

Rollup
Rollup is another scaling testnet that executes blockchain transactions on its (primary) optimized execution layer. After execution, rollup will post the transaction data to Ethereum.

Rollup is unarguably one of the most promising short and mid-term scaling solutions in Ethereum. There are two types of rollups, namely ZK rollups and optimistic rollups.

In ZK rollups, the tool posts multiple off-chain transactions into a single verifiable batch with a ZK-SNARK and then posted on the Ethereum blockchain. ZK rollups use validity proof.

Optimistic rollup is quite different in its approach. It will rollup multiple off-chain transactions into batches without using zero-knowledge proof.

Sharding

Image: Moralis Academy

Sharding is the ethereum scaling testnet, an upgrade of all the scaling solutions, and is expected to be launched in a couple of years.

The sharding protocol will spread Ethereum’s previously lone protocol across 64 new “shards,” or chains. This distribution will distribute the blocks on an existing Layer one.

Sharding is the ultimate scaling solution for Ethereum. This scaling solution will help improve transaction latency reduce transaction cost and throughput capabilities.

The Ethereum version 2.0 will fully deploy Sharding. Eth2.0 is the upgrade to Eth1.0.

Conclusion

Scaling testnets and solutions cut across various blockchain platforms. Some scaling test nets are bespoke for a single blockchain platform, while some allow connections between multiple blockchain platforms.

Whatever the capability and specification of the scaling testnet, their function is to increase output, improve efficiency and ensure faster transactions on the blockchain network.

The main upgrade of all scaling testnet is embedded in Sharding. When the Ethereum version 2.0 becomes fully operational, it will run on Sharding.



Author: Valentine A., Gate.io Researcher
This article represents only the researcher's views and does not constitute any investment suggestions.
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