, , ,

Analyst: “Layer 2 Projects Will Dominate Cryptocurrency Payments”

Coin Bureau anonymous host Guy predicted in a new YouTube session that using cryptocurrencies for payments to his 2.19 million subscribers will become more popular this year, “My fifth crypto prediction for 2023 is that crypto payments will become more common. This will again be due to better front-ends, regulatory clarity that increases liquidity, and most importantly, the increase in scalability that finally makes cryptocurrency payments viable.” said.

Guy said Layer 2s will play a critical role in the growing adoption of cryptocurrency payments. Layer 2s are cryptocurrency projects designed to increase the number of transactions per second (TPS) a smart contract platform can process. The analyst said:

“This prediction comes from a series of headlines I saw over the summer where Ethereum founder Vitalik Buterin said how Layer 2s on Ethereum will power cryptocurrency payments. Ethereum is the safest foundation to have for a payment system alongside Bitcoin. That certainly makes sense, given that it’s a layered layer.”

Adding that the rise of Layer 2 dominance in cryptocurrency payments is more likely with an update to the smart contract platform Ethereum, Guy pointed to the planned Ethereum Improvement Proposal 4844 (EIP 4844). EIP 4844 aims to improve the scalability of the Ethereum Blockchain using “shard blob transactions”. Regarding the potential of EIP 4844, Guy said:

“Moreover, the developers will implement the Ethereum improvement proposal, or EIP-4844, next summer. For those who don’t know, EIP 4844 will increase the scalability of Layer 2s in Ethereum by 10x to 100x. Most Layer 2 already handle thousands of TPS. Given that, such an increase would put them on par with Visa.”

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.