Ethereum ETH/USD creator Vitalik Buterin congratulated layer-2 protocol Op Mainnet OP/USD on its recent milestone, using the opportunity to flaunt the achievements of Ethereum's scaling solutions over the years.
What Happened: OP Labs, the company behind the development of Optimism protocol, announced a major technological upgrade, catapulting the project to "Stage 1" of decentralization.
With the introduction of permissionless fault proofs, withdrawals of Ether and ERC-20 token from the the Op Mainnet can be initiated without requiring the involvement of third parties.
Apart from Op Mainnet, scaling solutions like Arbitrum ARB/USD and dYdX V3 possess this capability.
Vitalik Buterin applauded the development and expressed optimism that more L2s will follow suit in upgrading themselves to "Stage 1."
The entrepreneur also shared the popular death knocking on the door meme, with the caption, "Ethereum: where yesterday’s FUD is today’s solved problem."
The intention was to poke fun at skeptics who doubted that key Ethereum upgrades like the Merge, Dencun which led to a drop in L2 fees, would never see the light of day.
Why It Matters: The Ethereum scaling industry took off during last year's bear market, with even the publicly-listed cryptocurrency exchange Coinbase tapping into it with the launch of Base blockchain.
The L2s have a total value locked of $43.8 billion as of this writing, according to L2beats, marking a fourfold jump from the same time last year.
Over the last week, L2s processed nearly 11 times more transactions than the Ethereum base chain.
Price Action: At the time of writing, OP token was exchanging hands at $2.08, following a 2.71% decline in the last 24 hours, according to data from Benzinga Pro.
Photo by Alexey Smyshlyaev on Shutterstock.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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