Vitalik Buterin, the Ethereum co-founder, has revealed the roadmap for scaling the Ethereum blockchain in an elaborate strategic plan to revolutionize the network. The strategy involves using the graphic protocol to expand the available data space for rollups. In a recently published blog by Vitalik, rollups will offer short, medium, and long term scaling solutions for the network. According to the latest experts ethereum price predictions, this could mean a great value increase of Ethereum.
Buterin laid bare the pragmatic approach of boosting the data space. While he suggested several solutions, which include block explorers, institutional volunteers, torrents, and DAOs projects, Buterin name-dropped Graph protocol only. The Graphic (GRT) protocol is a web3 project that uses GraphicQL to query and index blockchain data. The data storage solution enhances blockchain network throughput using highly scalable (Zero-Knowledge) ZK rollups.
Zero-knowledge is a cryptographic method that enables one user to validate the accuracy of another block without necessarily providing proof of blockchain data. It, therefore, creates a protocol where a digital transaction does not reveal the sensitive data of a user. In addition, it helps achieve scalability by compressing the amount of data that passes through the strained network. Zero-Knowledge rollups boast a better compression capability than Ethereum base layers.
The scaling roadmap comes after complaints of high gas fees associated with Ethereum network transactions. L2fees.info shows that ZK rollups gas fees are 40 to 100 times lower than the base layer. ZK rollups also go a step further to combine myriads of transfers into one smart contract, which can deconstruct or verify transfers automatically.
Buterin notes that rollup will also be limited in the long run, making sharding the ultimate long-term solution. It would add about two MB per second dedicated data space to rollups. Sharding breaks down the data load required for data procession into fractions. Fractionalizing the transaction information reduces the node’s job in transaction validation. This will be affected as the Ethereum 2.0 Pos Mainnet launches.
Combining rollups and sharding amounts to ultra-high scalability. Buterin’s idea of using sharding on top of rollups results in other storage issues of historical data from shards. This is where the Graph protocol comes in handy.
Protocols like the Graph provide incentivized marketplaces where users can pay for historical data servers with merkel proof correctness. As a result, individuals and organizations can run these historical storing servers and provide the data on demand.
Experts expect the price of GRT to increase as the trade volume of the token increases. In November, a one-day open interest of GRT tokens surpassed $65 million on platforms like Binance, Okex, and Huobi. Also, the GRT trading volume peaked at $580 million in 24 hours, signifying a potentially big price movement. Open interest is an indication of an increase in demand for an asset.
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