Exploring the Best Blockchain for Your Stablecoin or Token Generation Event
The following insights are provided by Rostyslav Bortman, Founder at Ethereum Ukraine.
When considering the blockchain for launching a stablecoin or preparing for a token generation event (TGE), the choice often narrows down to two major contenders: Ethereum or Solana.
Understanding Ethereum’s Evolution
While Solana boasts faster and cheaper transactions compared to Ethereum’s Layer 1 (L1), it’s essential to recognize Ethereum’s growth beyond its initial limitations. Today, Ethereum is part of a vast, modular ecosystem with a thriving Layer 2 (L2) infrastructure.
The Challenge: Despite Ethereum’s technological advancements, many users still perceive it as a network plagued by high fees and scalability issues. The market has yet to fully embrace Ethereum’s modular paradigm.
Similar to how the internet’s complexity is abstracted for seamless user experience, Ethereum must simplify its structure to enhance mainstream adoption. As long as L2s feel disjointed from Ethereum, mass adoption will remain a challenge.
Enhancing Ethereum’s User-Friendliness
Key Areas for Improvement:
- Interoperability – Enable seamless interactions between L1 and L2.
- DApps & Wallet UX – Enhance user experience without technical barriers.
- Scalability – Improve network efficiency and reduce fees.
Until these challenges are addressed, Ethereum may face resistance in mainstream adoption, despite being well-prepared for future growth phases.
Improving Interoperability for Seamless Transactions
Ethereum’s current hurdle lies in the lack of native interoperability between L2 solutions, necessitating manual bridging of assets between networks. The ecosystem is moving towards native interoperability, starting with L2 chains and eventually encompassing L1 and L2 integration.
Future of Interoperability by 2025:
- Arbitrum: Cross-chain transactions and swaps expected by Q1 2025 (<3 sec transfers).
- Optimism: Developing its interoperability solution with no specific deadlines.
- ZKSync: Tentative launch by late 2025.
- Polygon Aggregation Layer: Connecting chains on Polygon CDK (v0.2).
By Q2 2025, the Ethereum ecosystem expects to witness ERC-20 cross-chain transfers between L2 clusters, marking a significant milestone in seamless transactions.
While the journey to full interoperability continues, Ethereum’s modular architecture is poised to provide a more intuitive and user-friendly experience for mainstream adoption.
Revolutionizing DApps & Wallet UX for Mass Adoption
Apart from interoperability challenges, Ethereum faces user experience obstacles, such as transaction batching and gas fee sponsorship for regular wallets. Efforts like EIP-7702 aim to address these issues by enabling EOA wallets to function temporarily as smart contracts within single transactions.
Benefits of EIP-7702 for Users:
- Efficiency: Approvals and swaps can be bundled into a single action.
- Flexibility: Users can pay transaction fees in tokens other than ETH.
- Security: Enhanced authorization mechanisms through temporary smart contract functionalities.
The integration of EIP-7702 into wallets and dApps is expected to enhance Ethereum’s user experience within a short timeframe, offering a more seamless cross-chain interaction.
Advancing Scalability with Pectra
Ethereum’s scalability hinges on optimizing its distinct layers, including Execution (L1), Data Availability (DA), and Layer 2 solutions. Prioritizing the right components, such as L1 execution efficiency and DA enhancement, is crucial for network scalability.
Recent Developments:
- Base handled peak loads during the Kaito airdrop, achieving 160 TPS with an average fee of $0.02.
- Pectra plans to double blobs from 3 to 6 to alleviate congestion.
- Validiums offer Solana-level speeds with minimal fees.
As Ethereum’s ecosystem evolves, projects have the opportunity to leverage the network’s advanced infrastructure for seamless deployment and improved user experiences, bringing mass adoption closer.
Embracing a New Era with Ethereum
Ethereum is at a pivotal stage of transformation, marked by significant advancements in scalability, user experience, and interoperability. The upcoming months hold the promise of revolutionizing wallets and cross-chain interactions, shaping Ethereum’s path towards mainstream adoption.
With a focus on UX optimization and competition for superior solutions, Ethereum is on the brink of a new era, where user-friendly experiences will drive adoption across the network.
