Do you regret missing out on the LSD bull market before the Shanghai upgrade? Don't worry, the Cancun upgrade - an upgrade that directly benefits Layer2 (L2) tokens is coming soon.What benefits will the Cancun upgrade bring and how will it affect L2s?In short, the Cancun upgrade will increase the speed of L2 by 10-100 times and lower the cost
Do you regret missing out on the LSD bull market before the Shanghai upgrade? Don't worry, the Cancun upgrade - an upgrade that directly benefits Layer2 (L2) tokens is coming soon.
What benefits will the Cancun upgrade bring and how will it affect L2s?
In short, the Cancun upgrade will increase the speed of L2 by 10-100 times and lower the cost.
Some people may ask, how could this be possible?
Fundamentally, L2 needs to submit L2txs to L1 (Ethereum) to achieve the same security level as L1.
Before the upgrade in Cancun, L2txs was stored in the Calldata of L1txs. But this method is expensive and Calldata has limited space.
After the upgrade in Cancun, L1 will be stored in a new location called 'Blob'. Blob storage costs are low and space is larger.
So, let's quickly calculate:
If L2 has 1000 txs stored in L1, one Calldata can store up to 100 L2txs at a cost of 1ETH.
If there are 1000 L2txs, 10 Calldata are required, and the cost is 10ETH.
If stored in a blob, 1000 L2txs can be stored in one blob, and the cost of one blob is 0.1ETH.
Before upgrading in Cancun:
1 L2 transaction, will cost 10/1000=0.01ETH
After the upgrade in Cancun:
1 L2 transaction, will cost 0.1/1000=0.0001ETH
It's 100 times cheaper.
Note that in order to ultimately confirm the L2 transaction, it must be stored in Ethereum. Therefore, if you want to confirm 1000 L2txs, it is also related to the submission time to L1. So let's do another math problem:
Stored in Blob, 1 L1txs can be used to confirm 1000 L2txs, but stored in Calldata, 10 L1txs are required to confirm 1000 L2txs.
Therefore, when stored on Blob, it can be confirmed that there are 10 times more L2txs than before, and as the space increases, the speed becomes faster.
The actual logic and data are much more complex, but you only need to know:
The Cancun upgrade will make L2s cheaper and faster.
Now you may see that the cost of L2s is even more expensive than L1, but after the upgrade in Cancun, the situation will be much better.
Which currencies are good for upgrading to Cancun?
Now that we know the basic logic, what preparations should we make? What projects should be invested in? Here is a list. Both L2 projects and tokens will benefit from the Cancun upgrade.
ARB、OP
These two are the top projects of Layer2, and if there is an L2Summer, these two tokens will definitely benefit the most.
Arbitrum and Optimism have the highest TVL and the most users, and have been running for many years, with a mature ecosystem.
Assessment: Low Risk Medium Return
Boba、Metis
These two are early Optimism's fork projects, and the two tokens have been down for a year, so now is a relatively good time to enter.
Assessment: Medium risk but high return
LRC、IMX、dYdX
These are early zk series projects that were able to develop their own application specific Rollup and issued tokens. They will be an excellent investment target for zkLayer2s.
MATIC
The currently used 'Polygon' is not L2, but they have several ZKLayer2 solutions, including PolygonZKEVM, which has already launched its main network.
Evaluation: The market value of MATIC is already very high, so the expected return on investment is relatively small.
SHIB、CULT
Both SHIB and Cult.DAO have stated that they will launch Layer2 this year. If successful and the ecosystem grows, they will be included in the L2 narrative like YFI and FXS.
Layer2 Ecological Project
The fast and cheap network brought by the Cancun upgrade will also promote the development of projects built on top of L2. For example:
GMX, GNS, RDNT, JOE, etc. in the Arab ecosystem.
SNX, PERP, KWANTA, etc. in the Op ecosystem.
And other zkRollup ecological projects.
ZKS、STARK、SCROLL
None of these three have issued coins, and if they do so (in any form), they will be as important or even better than ARB and OP, as the encryption industry sees zkRollup as a more advanced Rollup solution. In addition, it is important to pay attention to air drops, which are expected to have a high probability.
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