While the open-ended, decentralized Ethereum blockchain is often celebrated, it has not been known for its ability to scale. The Ethereum blockchain is known for slowing down transactions and charging outrageous prices for gas.

To solve the problem, a variety of layer-2 scaling solutions, such as Polygon, Optimism and Immutable-X, were created on Ethereum. Layer-1 refers a blockchain architecture. Layer-2 is a network constructed on top of the underlying layer-1.

Ethereum’s Layer-1 Scalability will Increase

Although scalability is still a concern for Ethereum (NASDAQ: ), Surojit Chatterjee has forecast that Ethereum’s scalability will improve dramatically in 2022.

Ethereum’s transition into proof-of-stake consensus mechanism scheduled for mid-2022 is expected to bring significant improvements to the network – including the much-needed scalability boost.

Ethereum is capable of handling only between 15 and 45 transactions per minute, while Polygon handles up to 65,000 transactions each second for a single sidechain.

Chatterjee is positive that L1 will increase in 2022. However, he still believes L2 (which grew 11,000% in 2021) will continue to make progress in this year.

Chatterjee says that Ethereum may see the emergence of more Layer-1 gaming networks and social media platforms as Scalability increases on Layer-1. Chatterjee also forecasts that 2022 will see more privacy-focused apps.

To The Flipside

• Chatterjee feels that Ethereum may attract regulatory attention more if there are more Anti-Money Loss and Know Your Customer regulations.

You should care

Achieving better scalability – a Layer-1 problem of Ethereum – could set be the last piece of the puzzle to unlock Ethereum’s explosive growth.

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