Ethereum Second-Layer Scalability Still Needs Work, Says Starkware CEO

Uri Kolodny, co-founder and CEO of blockchain firm StarkWare, told Cointelegraph that Ethereum's second-layer scalability solutions still need some work.

Listen to article Uri Kolodny, co-founder and CEO of blockchain firm StarkWare, told Cointelegraph that Ethereum second-layer scalability solutions still need some work.

Ethereum co-founder Vitalik Buterin claimed on June 1 that the blockchain's layer-two scaling initial deployment has "Basically" succeeded.

"I wouldn't pop the champagne bottles just yet, as many of these proposed solutions have at this point been deployed only on Twitter, not on Ethereum Mainnet."

Kolodny admitted that there are many promising developments when it comes to second-layer Ethereum scalability solutions.

Building new systems takes timeAs Cointelegraph reported in early November, decentralized exchange IDEX claimed to have created an "Infinite scaling solution" for the Ethereum network based on a variation of Optimistic Rollups.

When asked what is holding off Ethereum second-layer scalability solutions, Kolodny said that "Lack of proper integration into wallets and other tooling already in place" is part of the reason.

"Finally, there is tremendous uncertainty for many DApp developers - which solution will emerge as the dominant one? Which [one is] right for them? What about all those Ethereum killers? Should they perhaps wait for Eth2.0 - all this uncertainty results in delayed decisions, which also slows down adoption."

The future of Ethereum second-layer scalability solutionsLooking into the future, Kolodny said that he believes that "Transactions will move to layer two faster than we realize." He explained that Ethereum transaction fees are really high today and this will force many to move to second-layer solutions that allow them to perceive lower and more predictable transaction costs.

"I think that what will follow is plenty of bells and whistles around these basic transactions. I think that things like perpetual contracts and margin trading are another interesting capability that layer two solutions should support. The rest of the DApp crowd will follow."