The blockchain industry has been growing rapidly in the last decade. A lot of time and resources have been dedicated to creating applications designed to disrupt most traditional frameworks and serve the world in a better way.
Despite the huge potential, many of these applications have been facing a lot of drawbacks such as scaling issues, limited decentralization, and security compromises on protocols.
Ethereum blockchain caves to DeFi pressure
Ethereum is the most renowned blockchain for Dapps and DeFi. The huge interest in the DeFi space has seen value locked within DeFi smart contracts surge to over $21 billion. This has put a strain on Ethereum limiting its ability to serve users due to its low transaction throughput and high gas fees.
Although these issues can be dealt with by the release of ETH 2.0, the Ethereum Foundation is reluctant to do so, choosing to release the upgrade in phases to ensure all advancements work as planned. Consequently, the market cannot estimate when the Serenity update will be fully deployed. Until this happens, technological additions will be relied on to ensure blockchain technology serves users.
These additions are known as layer 2 solutions which are feasible means of ensuring an improved degree of scalability, decentralization, and security. They facilitate scaling by processing transactions outside Ethereum’s main chain, on a separate layer.
Layer 2 solutions and their limitations
The existing layer 2 solutions have employed different approaches for improving Ethereum’s functionality. Dapps demand specific solutions so a one-size-fits-all solution might not be viable. For example, a Dapp looking for composability might turn to Optimism, while one looking for top notch smart contract deployment might choose zkSync, and one looking for ZKP-based scalability might choose StarkWare. These Dapps that base their operations on layer 2 solution networks are required to purchase tokens for that particular platform and constantly collaborate with the protocol.
Although the layer 2 solutions have greatly improved the industry, Dapps that need more than one solution are not well served. For instance, a project that needs a combination of scalability, smart contract support, composability and privacy may lack an ideal solution. Instead, it would need to buy tokens and collaborate with different layer 2 solutions at different times, which is costly. Additionally, most layer 2 solutions are in competition with one another, which can be counterproductive for such projects and the industry at large.
This is where the Tokamak Network comes in. It provides a platform that assures decentralized and secure property same as Ethereum main chain while supporting high level of scalability and extensibility.
Tokamak’s Value Proposition as A Layer 2 Aggregator
Tokamak Network serves as a layer 2 aggregator platform enabling easy development of Dapps. The platform brings together all the best layer 2 solutions under one roof. Tokamak is the first Turing complete plasma protocol meaning it has all the functionalities of Ethereum’s main chain. Therefore, projects in need of layer 2 solutions can leverage Tokamak to unlock the protocol’s features like smart contract support, scalability, composability, and privacy.
Tokamak’s main focus is to encourage collaboration instead of competition among the layer 2 solution providers. By aggregating them on a single platform, Tokamak will put an end to the cutthroat competition within the market and allow blockchain based projects access to the best solutions.
Projects will no longer need to purchase many native tokens or build applications from scratch when a new layer 2 solution is required. As a Turing complete plasma network, Tokamak promotes the creation of next-generation projects that are robust by design and assure an unprecedented degree of scalability, usability, interoperability, and functionality.
Tokamak is setting new industry standards by facilitating a new era of cooperation between layer 2 protocols. This will help projects to lower costs and save time when building new applications. By having all layer 2 protocols under one roof, Tokamak hopes to solidify its position as the optimal choice for projects by offering all layer 2 solutions under a singular ecosystem.
The Promising Future for Tokamak
Tokamak has been one of the awardees for the Ethereum Foundation Grants. The project also got some high praise from Ethereum’s co-founder, Vitalik Buterin, who stated that it has a unique design that even Ethereum’s plasma researchers had not thought of.
Tokamak is also backed by several prominent investment companies such as Blocore, Skylake Capital, and Alphain Ventures. The recent launch has availed considerable financial resources to the team. These developments allow Tokamak to stay focused on its path of enhancing collaborations among layer 2 protocols as outlined in their roadmap.
Additionally, the native token for the network, TON, has seen its trading volume increase substantially lately. The price of the token in the future is very promising, with industry support and recognition expected to trigger a bullish trend.
These factors show a promising future for Tokamak and the entire layer 2 industry, with the solutions bringing scalability issues to a close and simplifying industry-wide innovation. The project hopes to create more partnerships aligned to its mission, and create a wide network to allow Dapps to function better and get all solutions needed under the network.
CryptoMode produces high quality content for cryptocurrency companies. We have provided brand exposure for dozens of companies to date, and you can be one of them. All of our clients appreciate our value/pricing ratio. Contact us if you have any questions: [email protected] None of the information on this website is investment or financial advice. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. No reviews should be taken at face value, always conduct your research before making financial commitments.