Scaling cryptocurrency ecosystems remains a pressing matter. As far as Ethereum is concerned, a new solution to this problem may come from a rather unexpected angle.
Ethereum is the most active cryptocurrency ecosystems in terms of smart contract and dApp development.
IDEX has Major Plans for Ethereum
That success comes at a price, as these projects could end up permanently congesting the network as a whole.
To counter any problems in this department, the network needs to scale beyond its current limits.
Several options are being explored by the developers, and they will be rolled out over the next few years.
However, there is always room for more options, and IDEX has now thrown its hat into the ring.
Most people will know IDEX as a successful decentralized exchange and dApp.
As such, the team knows exactly where Ethereum’s scaling problems are and how they might be addressed.
In a recent blog post, the IDEX team talks about Optimized Optimistic Rollup, or O2 Rollup. It is a layer-2 scaling solution for all public blockchains.
Under the hood, O2 Rollup is built on IDEX’s hybrid design and allows for unlimited off-chain scaling. All of this is achieved through fixed on-chain settlement costs.
By settling transactions in batches, the overall gas costs of doing so will be reduced drastically.
This new scaling solution removes balances from the on-chain contract. As such, the core functionality focuses on escrowing funds, whereas the rest of the information is stored off-chain in a public ledger.
Sustaining such a network will require the use of validator nodes. Those nodes will be run by members of the community.
At this time, it has not been announced if and when this technology will be deployed.