Building Fast And Cheap dApps

7 days ago Bitfinex paid 2M$ in gas fees for a simple transfer of 100k$

Why does it matter, to move from the layer one to layer 2? Why even bother building on layer 1 when the layer 2 is so efficient and cheap? Why not move to other cheap blockchains like the Binance Smart Chain as it’s the case with most of the new P2E games in the market now?

Short answer to these big questions is that, we,  at Unity Network are in love with the Ethereum blockchain as it has the largest number of dApps deployed on its network and a very safe number of nodes that makes it more decentralized and very reliable. But again there are some big challenges as of the moment of writing these lines regarding the gas fees and the congested network, this sounds like the nightmare of every user of the Ethereum blockchain. You might certainly have ended up paying some crazy transaction fees after  minting a new NFT or just transferring some bucks to your cousin who is faraway.

What is a Layer 2 scaling solution for Ethereum? 

The main difference between you transferring 1 ether to your second wallet in Layer 2 is that your transaction is going to be handled off the Ethereum Mainnet (layer 1), the idea here is not to get rid of the Mainnet but instead to take advantage of the robust decentralized security model of it.

Optimistic Rollups: Innocent until proven guilty

The main idea behind optimistic rollups is to execute the logic off-chain and post transactions data  to layer 1 later, allowing them to be secured by layer 1. This way the optimistic rollups are inheriting the security properties of layer 1, while performing execution outside of layer 1.

The layer 2 ecosystem

Courtesy of @Coin98Analytics

Arbitrum as our Layer  2 scaling solution

To answer why Arbitrum and not another L2 scaling solution for the Ethereum blockchain. We found that Arbitrum Rollups were very mature in term of compatibility with the existing Solidity opcode, a thing that allowed us to trustlessly deploy our existing Solidity contracts to its network. Another reason why Arbitrum is because of its Proof Of Fraud mechanism which handles resolving conflicts off chain and not on chain. And this means that Arbitrum has a higher transaction capacity equating to higher performance. 

What’s next?: Zk Rollups and Eth 2.0 

We can’t wait for ZK rollups to be finally ready to support smart contracts. We believe that they will solve a lot of security concerns by providing a trustless way of verifying transactions by relying on heavy mathematical computations on chain, instead of relying on off-chain validators.

The only difference between ZK rollups and optimistic rollups, is that when you are using ZK rollups every transaction will be deemed guilty until proven innocent, while in optimistic rollups every transaction will be deemed innocent until proven guilty and that's why they are called optimistic. 

zKsync are the leaders in developing ZK rollups solutions for the Ethereum network and at Unity Network we are thoroughly following them for upcoming partnerships in the future regarding the next dApps we are going to build for our community.

Note that we won’t be launching any dApp at Unity Network without making sure first of all that the community is very confident about the technology and that every member is familiar with the basics and the technicalities behind.

About the Author

Soufiane Hajazi
CTO & Co-Founder

Soufiane is the Chief Technical Officer and Co-Founder of Unity Network.

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