Cryptocurrencies
New Blockchain Tech Promises to Ease Ethereum’s Growing Pains
- So-called Layer 2 projects aid in cheaper, faster transactions
- Crypto exchanges among first to use tech from Arbitrum, others
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New technology promising to solve Ethereum’s growing pains is gaining traction, increasing bets that some day most of the network’s transactions might not actually take place on its own blockchain.
For years slow speeds and high transaction fees have plagued the network underpinning the $550 billion cryptocurrency Ether -- home to the most popular blockchain applications. Its weaknesses have allowed new competitors such as Solana and Avalanche to gain ground. However, help from so-called Layer 2 technologies, or rollups, could be a solution.