The Future of Ethereum with Layer-2 Scaling Solutions

In Blog, Community by OMG Network

The following is a highlight reel of the fireside chat we held on the 21st of August post-OMG Network’s Bitfinex integration. The chat was conducted by Vansa (CEO), Stephen (COO), and Kasima (CTO), where they discussed how Ethereum scaling solutions can encourage large-scale adoption of the technology, explain the significance of the Tether (USDt) migration, and talk about the future of OMG Network.

The Rise of Ethereum Scaling Solutions

Kasima: “Ethereum gas fees is too high! We’ve been anticipating this growth since the past six months, especially after yield farming.”

Vansa: “2017, right after Crypto Kitties was when people felt the need for Layer-2 solutions, fast forward to today, where Ethereum congestion is a sustained issue.”

Kasima: “Crypto moves fast, and we’ve seen the same with congestion. Our smart contract deployments costs were 1 ETH four months ago, and now we’re paying 5 ETH. We were waiting to deploy contracts at 30 Gwei and now we probably won’t see less than 100 Gwei again. I think that stresses the need for Layer-2 Ethereum scaling solutions like OMG Network.”

Stephen: “About 6 years ago I spent a week in the Silvergate offices trying to explain to high-level banking executives about blockchain – from tokenizations to eCommerce. And now Silvergate are actively looking into blockchain solutions. I feel the same with Ethereum scaling, as soon as it hits, it’s going to take-off like a rocket.”

Why Do Exchanges Need Ethereum Scaling Solutions Like OMG Network?

Stephen: The integration process was really straightforward and that speaks a lot about our product-market fit. While we started these discussions when gas prices were hovering at 150 Gwei, our presentation of the Ethereum traffic, high gas fee, and finality problem just made sense. After that, the conversation shifted from “why do we need this?” to “how and when can we integrate?”

Stephen: If exchange could retain the same security guarantees as the system they use today, with no changes in control or privacy, and benefit from faster and cheaper transactions, why would they not integrate with the OMG Network?

Kasima: For us to be able to pull Tether (USDt)'s transaction volume off the root chain makes room for more DeFi work to proceed.

Stephen: Ethereum scaling solutions like OMG Network help the entire ecosystem with price transparency, fairness, and liquidity in the market. Scaling solutions also free up Ethereum to support services predicated on smart contracts.

What’s Next for OMG Network?

Kasima: We’re working on a V2 and you can track the progress on our Github. We’re paying special attention to UX work and trying to streamline exits. We’re also working on further improving our resilience. And while those sound like a small number of things, they’re two large buckets for us.

Stephen: There are active integrations from a number of exchanges happening now. We’ll talk about them publicly as soon as we can.

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