Monday, November 29, 2021
HomeCryptocurrencyEthereum Layer 2 Venture Boba Community Hits $1B Locked

Ethereum Layer 2 Venture Boba Community Hits $1B Locked

Key Takeaways

  • Boba Community is a Layer 2 Optimistic Rollup resolution aiming to scale Ethereum.
  • The mission has crossed over $1 billion in whole worth locked, whereas its native token is up 540% since launching final week.
  • Alongside Optimistic Rollups, a number of promising ZK-Rollup options are working to cut back fuel charges on Ethereum.

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The race to scale Ethereum on Layer 2 is heating up. 

Boba Community Positive aspects Adoption

Ethereum’s Layer 2 is coming to life. 

The newest resolution to achieve important traction is Boba Community, an Optimistic Rollup launched by the OMG Basis and Enya. In line with information from L2Beat, it presently holds $1.08 billion in whole worth locked after seeing elevated adoption all through November. The whole worth locked was roughly $87 million on Nov. 14 and has elevated by over 1,200% since then.  

Boba Community is certainly one of a rising variety of tasks utilizing Optimistic Rollup expertise to scale the Ethereum community. It really works by executing transactions exterior of Layer 1 and submitting information to the bottom chain to avoid wasting on fuel charges. It makes use of a bridge that lets customers transfer funds from Ethereum mainnet to Layer 2. It’s certainly one of a rising variety of tasks utilizing rollup expertise to scale the Ethereum community. As Boba leverages Optimistic Rollups, it has a problem interval for transactions, which implies there’s a seven-day withdrawal interval to Ethereum mainnet. Nonetheless, it will get round this by providing customers quicker withdrawals at the next price through a swap-based bridge. 

Aside from the excessive prices of utilizing Ethereum mainnet, one seemingly issue behind the rising utilization is Boba’s current token launch. The mission launched BOBA with an airdrop to OMG holders final Thursday and it’s since rallied 540%. It hit an all-time excessive of $7.16 earlier right this moment. Boba Community is the one Optimistic Rollup resolution to launch its personal token to date; its two greatest opponents, Arbitrum and Optimism, are but to verify any plans for a token regardless of welcoming an rising variety of main DeFi tasks and customers to their networks in current months. Arbitrum presently leads the race, holding 41% of the Layer 2 market share. 

Optimistic Rollups are just one a part of Ethereum’s Layer 2 scalability choices. It’s hoped that utilizing Ethereum will develop into extra inexpensive with the assistance of ZK-Rollups, one other kind of scaling resolution that makes use of zero-knowledge proofs to bundle transactions off-chain. The main ZK-Rollup tasks embody StarkWare, zkSync, and Loopring. StarkWare powers the Layer 2 decentralized trade dYdX and the favored NFT mission Immutable X. It not too long ago raised $50 million and is making ready to launch a brand new product known as StarkNet on mainnet this month. The crew says it’ll scale back Ethereum fuel charges by an element of 100. 

Disclosure: On the time of writing, the writer of this characteristic owned ETH, DYDX, BOBA, OMG, LRC, and several other different cryptocurrencies. 

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