Amidst the continuous negative trends, there is some relief news for Ethereum. Independent developers of the Ethereum Ecosystem have launched a new Layer 2 Rollup Solution to solve its scaling problem, which is named Ethereum R1. This new Layer 2 will be funded entirely by donations. Along with this, the developers have clarified that it will not have any tokens.
What is the purpose of the Ethereum R1 Layer 2 Rollup Solution?
According to the developers, all the Layer 2 blockchains currently working on Ethereum are more like a new layer rather than a scaling solution. Due to private ownership, opaque governance and centralized leadership, they have turned into a private cartel rather than a commodity. The developers of Ethereum R1 just want to develop it as a normal commodity, on which any developer can work without any censorship and take advantage of Ethereum’s security and privacy.
How Ethereum R1 is Different from Other Ethereum Layer 2 Blockchains
Most Layer 2 Blockchains built on Ethereum, such as Polygon, Arbitrum, and Optimism, have their tokens. Their ownership controls the governance and planning of Blockchains. Unlike all these other scalability solutions, Ethereum R1 will work only on donations without any tokens, private sale, or centralized leadership. Due to which its neutrality will remain intact. The developers have clarified that all its fees will be burned by 2030. So that its community ownership remains in the true sense.
Can Ethereum R1 be a game changer?
Ethereum is constantly struggling with its internal problems, such as slow transaction speed, high gas fees, and low scalability. Due to which the market sentiment for it is getting weaker. Currently, the market share ratio of Ethereum and Bitcoin is at its lowest level in the last 5 years. This scalability solution that has come in such a difficult time will bring positive sentiment for Ethereum in the market. Ethereum R1 resembles the recent statement of Vitalik Buterin in which he said that only good thinking can make the Ethereum App layer better.
Ethereum R1 is a Layer 2 Rollup solution that seeks to solve Ethereum’s scalability problems without any tokens, private investment, or centralized governance. It is being developed with a completely donation-based and open-source approach, which makes it different from other Layer 2 solutions.