As the crypto sector has continued to evolve, a plethora of blockchain solutions have emerged, many of them providing a solution to the congestion problems facing the largest networks in the world today — such as Ethereum (L1). Within the digital sphere, L1 (Layer 1) refers to the fundamental protocol level that forms the bedrock of any blockchain, embodying its core rules and operations.
To help alleviate some of the existing bottlenecks afflicting these networks, there has been a rise of high-quality L2 (Layer 2) solutions. In essence, L2s serve as auxiliary frameworks constructed atop a base layer to ameliorate its functionalities without altering it in any way. These scaling solutions come with the promise of enhanced TPS (transaction per second) rates, reduced transaction fees, and accelerated transaction speeds while at the same time addressing many common bottlenecks afflicting several L1s.
Moreover, crafting a bespoke L1 blockchain comes at the expense of escalated development resources, both in terms of time and finances, thereby making it a less economical choice for most projects (even though it undeniably furnishes more control over the foundational protocol).
A Dive into a More Efficient Crypto Ecosystem
In addition to resolving many of today’s blockchain scalability quandaries, L2s have also paved the way for a more synergistic future, one where established market players — from the crypto as well as from the traditional finance (Trad-Fi) realm — can optimize their day-to-day operations through their use. ApeX Pro, for example, is a decentralized exchange (DEX) utilizing the StarkEx scalability framework to power scalable, self-custodial trading and payment transactions for applications across the DeFi landscape.
To elaborate, StarkEx’s tech infrastructure affords ApeX Pro users full control/ownership over their assets while allowing them to benefit from reduced gas fees and faster data transfer speeds. Moreover, StarkEx’s L2 scalability engine, when synchronized with ApeX Pro, facilitates accelerated and affordable perpetual contract trades while still offering robust liquidity, market depth, and transparency to traders.
Since its live launch during Q4 2022, ApeX Pro has continued delivering permissionless cross-margined perpetual contracts using a novel social trading framework that not only empowers seasoned traders (with passive income avenues) but also provides a nurturing ground for new market entrants to learn, observe, and replicate successfully the trading strategies of other, more experienced industry veterans.
Lastly, the platform’s order book model, coupled with its innovative Smart Liquidity Pool (SLP) and unique staking program, provides a plethora of opportunities for traders to engage in revenue sharing and earn real yield rewards on a weekly basis. Apex Pro is also compatible with 11 wallets — including popular options like MetaMask and Trust Wallet — and supports multiple chains like Ethereum, Arbitrum, and Binance Smart Chain, accentuating its commitment to enhancing accessibility and user experience.
Ethereum’s Traffic Jam
Even though the implementation of 2021’s EIP 1559 (Ethereum Improvement Proposal) helped decongest the Ether network and stabilize gas prices — i.e. a transaction fee that is required to process a transaction — to a certain degree, several reports over the past year suggest that the network still suffers from scalability problems.
For example, earlier in May, the ecosystem’s native fee rates soared to a 12-month high of 87 gwei — with the median gas price surging well past the 150 gwei mark on May 1 — on the heels of rising congestion. A similar scenario was witnessed in late October when the price of Bitcoin soared from $29,000 to approx. $35,000.
Thus, as more and more people continue to gravitate toward the use of decentralized technologies, it stands to reason that solutions like ApeX Pro, will help the Ethereum ecosystem become more efficient, thereby spurring its adoption in the long run. Interesting times ahead!