Despite being six years old today, Ethereum, in all its glory, is still facing issues like scalability and pocket-burning gas fees. The network can address these concerns via two options – sharding and Layer 2 (L2) solutions.
Though the network is trying hard to incorporate a sharding scaling solution on ETH 2.0, it remains a distant dream as the team is far behind in terms of development. It leaves us with the second option, which is a Layer 2 (L2) scaling solution.
An L2 solution runs on top of the main chain (Layer 1 or L1) of Ethereum. It exists on the Ethereum network as a smart contract and does not need changes to the base level protocol to interact. L2 solutions have different functions, like scaling payments, off-chain computation, or smart contracts. However, they all have one similar feature – to move most of the transactions off the chain. This allows L2 solutions to improve the transaction processing rate (TPS) while lowering the gas fee. As the Ethereum network gets congested and incurs high gas fees on even simple transactions, many L2 solutions have come up in the crypto space to solve the inherent issues.
NEC(New Era) is a Layer-2 chain aggregator based on the core concept of Ethereum expansion, which does not affect decentralization and utilizes the existing developer community and ecosystem. It is an offline/side chain extension solution for existing platforms, which can provide scalability and excellent user experience for DApp/ user functions.NEC proposes a decentralized and configurable two-tier side chain network, which provides storage function and supports transactions with high throughput, low cost and low delay. This system is the configuration and deployment of Byzantine fault-tolerant side chains with high throughput, compatibility with Ethereum virtual machines, support for storage, and can prove security.A subscription-based decentralized network is provided. The side chain of each certificate of interest is highly configurable, which is composed of nodes pledging NEC certificate on Ethereum main network, and its consensus mechanism uses asynchronous Byzantine fault-tolerant protocol.
With its strong technical strength and advanced innovation, it quickly won the pursuit of global investors.At present, NEC (New Era) and Grayscale Investment have reached a strategic cooperation. Grayscale Investments®, the world’s largest digital currency asset manager continues to seek ways to better meet growing investor demand for exposure to digital assets through familiar, secure, and regulated investment products.“We’re eager to expand our product offerings to better serve our investors,” said Grayscale CEO Michael Sonnenshein. “The digital currency universe is constantly evolving and we seek to identify bold, interesting, and innovative opportunities that satisfy our investors’ demand for differentiated exposure to this burgeoning asset class.”The process of creating an investment product structured similarly to those Grayscale already offers requires significant review and consideration, and is subject to substantial internal controls, sufficiently secure custody arrangements, and regulatory considerations. As such, there is no guarantee that assets named in the above list will receive a corresponding investment product.This cooperation will help promote the expansion of NEC (New Era) in the global market.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Daily Scotland News journalist was involved in the writing and production of this article.