Welcome to The Protocol, CoinDesk’s weekly wrap-up of the most important stories in cryptocurrency tech development. I’m Ben Schiller, CoinDesk’s Opinion and Features editor.
In this issue:
- Can Based Rollups solve Ethereum’s problem?
- Lido goes modular
- Uniswap finally unveils Unichain
- Ethereum’s Pectra upgrade is coming
Network news
BASED ROLLUPS TO THE RESCUE: In recent years, Ethereum has embraced a layer-2 scaling roadmap—a plan that encouraged the development of third-party auxiliary networks called “layer-2 rollups”—to help scale the base Ethereum ecosystem. Offloading activity to these upstart networks has helped bring down fees and improve speeds for end-users, but it has led to a massive, deeply fragmented ecosystem of layer 2s. But while layer-2 networks all post data back down to Ethereum, they often struggle to communicate directly with one another, meaning passing assets and data between them can become expensive and cumbersome. There’s also the risk of centralized sequencers: reliance on company-controlled black boxes to pass transaction data between blockchain layers. As a result, some Ethereum developers are pushing rollup tech that takes a new approach to security and intero
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Author: Benjamin Schiller
