It is only a matter of time until every cryptocurrency exchange and fintech company manages its own blockchain, according to at Labs, builder of Ethereum Overlay Protocol Optimism.
The logic is simple and simple, says at Labs Head of Product, Sam Mcingvale, pointing to the run-away success of Coinbase’s Layer-2 (L2) Network base since the debut in 2023.
To begin with, Base has built an incredible ecosystem from users and developers to support the exchange, said McingVale. But the biggest no-brainer is how a system such as base, combined with the Bitcoin-through Coinbase, loans covered by Bitcoin, lets slumbering crypto assets can be received in detention by lending them, he added.
Base was built using Optimisms on Stack, a software product that helps users to develop Layer-2 block chains that work with Ethereum but offer faster, cheaper transactions. Mcingvale said that the success of Base, it is the largest layer 2 due to a number of statistics, including the total value locked, is an illustration of how the industry is likely to develop.
“I expect that every crypto exchange and every fintech company will run its own blockchain for the next five years,” said Mcingvale in an interview. “If you own Bitcoin on Coinbase, in one button, they take that bitcoin, move it to the base, so that you can then borrow USDC. And now you can do what you want with that USDC.”
Both optimism and rival arbitrum assume that a transaction is valid – hence “optimistic” – with potential fraud that has been detected by permissionless error tests. Optimistic roles stimulate the transit of the basic layer of Ethereum by processing transactions off-chain to reduce the calculation load, to divert security by publishing transaction results on the underlying or low-1, blockchain. Another approach is to use zero knowledge tickets to make rollups that publish cryptographic evidence of validity for transactions outside the chain.
McingVale, who played an important role in building custody activities in Coinbase, makes the further point that simply keeps crypto in cold storage on a platform, works relatively expensive.
“Traditionally there have been a lot of crypto for custody because of all the security implications,” said McingVale. “In contrast to custody, for which you don’t really pay, those shares are scammed and things happen to them under the hood. Crypto is still much more coming up, but it moves in that direction.”
A bit of intense jealousy has clearly happened in Crypto -country. Global Exchange Kraken has introduced ink, a low-2 blockchain that also uses optimism, just like Bybit, Bitget and OKX. Fintech companies such as Robinhood, for example, also investigate their own L2s linked to Ethereum.
The modular vision of optimism on an interoperable “superchain” would ideally enable users from one blockchain to another, just like their browser goes from one website to another, McingVale said.
“Early Adopters in Crypto were much more willing to go up with a kind of worthless UX,” said McingVale. “People would wait 12 seconds for something to confirm and pay $ 50, because it was this new technology that they explored, probably being related to online in the mid -90s. Like, it was painful.”
Credit : cryptonews.net
