At present, Layer 2 of Ethereum is exploding in an all-round way, which may change the structure of the blockchain industry. Will Layer 2 become the next tipping point in the encryption field this year? What opportunities are there to focus on? On the evening of February 25th, Ouyi OKEx Intelligence Bureau invited Mr. Tan Guopeng, the founder of Ownbit, as a guest to fully interpret the Layer 2 wealth code.

The following are key excerpts:

The following are key excerpts:

1. The Ethereum network fee level has reached a record high, and expansion is urgent. Without effective means to curb the high fee, it is likely to seriously affect the development of Ethereum itself.

2. Both Optimistic and ZK technical solutions have their own advantages and disadvantages: the biggest advantage of Optimistic Rollup is that it can be compatible with the virtual machine of the existing Ethereum main network. The biggest disadvantage is that the challenge time for assets to return to the main network is too long, and the network itself security. The biggest advantage of ZK Rollup is that it generally does not need to challenge the time, and can realize minute-level transfers. The disadvantage is that it does not support general-purpose virtual machines, and the technical complexity is too high.

3. In the long run, I agree with the expansion route of ETH2.0, but in the short term, I will rely on the expansion of Layer 2 to solve the immediate urgent needs. If Layer 2 itself develops well, it will greatly offload some of the transaction needs of the Ethereum mainnet itself.

4. The public chains of major exchanges can also be understood as a kind of Layer 2. The Ethereum main network, Layer 2, and the public chains of exchanges are in a state of mutual competition.

5. EIP-1559 is better than the gas price mechanism currently in use, but it cannot solve the current network congestion. 1559 encountered resistance from miners because it seemed to deprive miners of some of their rights, especially the gas fee. On the surface, the income of miners will decrease, but in the long run, is it beneficial to the entire ecology, so that the overall income of miners will decrease? increase, is actually unknown.

6. To examine whether the Layer 2 project has a future, we can look at it from two points: first, whether it supports the general-purpose Ethereum EVM, and second, whether it is committed to making a general-purpose network.

7. At present, Layer 2 has received widespread attention, and the popularity is very high. It is recommended to be cautious from the perspective of investment.

The following is the full text of the conversation:

The following is the full text of the conversation:

Ouyi OKEx Intelligence Bureau: At present, the average transfer fee on the Ethereum network has exceeded 10 US dollars, and some DeFi applications can easily charge hundreds of dollars for a transaction fee. With such a congested Ethereum, competitors of Ethereum The progress is very fast, such as Polkadot and the public chain of some exchanges. Do you think the current Ethereum has reached a critical moment of expansion?

Tan Guopeng: Yes. At present, the entire transaction fee level of Ethereum has reached the highest level in history. From the perspective of user usage, it has actually been greatly suppressed. Because many users may not even be able to understand why there is such a big rise. Sending an ordinary USDT transaction now may cost 200 yuan, and some even cost 300-400 yuan, which has caused great obstacles to the most basic request of sending transactions.

Therefore, the expansion of Ethereum is actually very late. If no effective means are used to curb the high fees, it is likely to seriously affect some developments of Ethereum itself.

Recently, Ethereum competitors have performed very well in terms of currency prices, including the public chains of major exchanges, which have also experienced a very good increase, which has a lot to do with the unusable state of Ethereum itself.

We see that there is a lot of demand flowing out of Ethereum, which is a forced outflow, because users cannot bear such a high transaction fee, so it is obvious that the expansion of Ethereum is now urgent.

There is a statistical data to look at the increase of Ethereum’s handling fee. Generally, we look at the gas price, which has risen from an average of 50 Gwei at the beginning of the year to a maximum of more than 1,000 Gwei. Now it may have fallen back to 150~200. This increase may seem to be three times between 150 and 50, but it also has an additional increase in the ETH price itself. If the ETH price itself has increased to 10 times, the gas price itself In the case of a three-fold increase, the increase in the entire handling fee is actually 3×10, and it takes a 30-fold increase in handling fees. Such a high handling fee is just an ordinary token transfer. For some DeFi applications , the handling fee may be higher, because the gas price they will spend will be even greater, basically reaching such a state that it is very difficult to use.

OKEx Intelligence Bureau: What do you think of the recent rapid development of the exchange public chain? What is the competitive relationship between the exchange public chain and Ethereum and Ethereum Layer 2?

Tan Guopeng: Regardless of whether it is Layer 2 or the public chain of the exchange, from the perspective of ETH, or from the perspective of users, their functions are similar, that is, to divert some DApps that originally operated on Ethereum Or some transaction of transfer.

What is the relationship between the exchange's public chain and Layer 2? You can also understand the public chains of major exchanges as a kind of Layer 2. Some of the functions they undertake are actually not fundamentally different from Layer 2 networks. It’s just that they may not be able to enter and exit the Ethereum mainnet in a decentralized manner, and the Ethereum mainnet, Layer 2, and the exchange’s public chain are also in a state of competition with each other.

The public chain of the exchange is a main network similar to the independent Ethereum. It is essentially a parallel relationship with Ethereum, but Layer 2 is attached to the main network of Ethereum. Although it is attached to the main network, it itself There is also a competitive relationship with Ethereum, because it implements similar functions to the Ethereum mainnet. If Layer 2 itself develops well, it will greatly divert some of the transaction needs of the Ethereum mainnet itself.

Another point is that the development of the exchange public chain is inevitable. I remember that when Ethereum was congested for the first time last year, our Ownbit wallet was doing OMG integration, that is, Layer 2 integration. At that time, we realized that if the major exchanges took the initiative to integrate these Layer 2 solutions and technologies, it might be more user-friendly.

Ouyi OKEx Intelligence Agency: Layer 2 is an expansion solution for Ethereum. Currently, its mainstream technologies include ZK Rollup and Optimistic Rollup. What stage do you think these two programs have developed to? What technical challenges do they face?

Tan Guopeng: Optimistic and ZK are currently the two most popular Layer 2 solutions. They have their own advantages and disadvantages. Let me briefly summarize them with you. Optimistic is currently a relatively rapid progress program. It is similar to the previous plasma, which is what we call OMG, but it is different in some packaging mechanisms, including the design of the so-called challenge time. Its main advantage is that it can implement a virtual machine that is relatively compatible with the current Ethereum mainnet, that is to say, we can even modify the code of Ethereum (in fact, they are also modified on the code of Ethereum), and the Optimistic Such a two-layer network.

Its biggest advantage is that the DApps currently deployed on Ethereum can be migrated seamlessly, and in terms of the difficulty of development, it is relatively easy. But Optimistic also has shortcomings, and the shortcomings are also very obvious. One of its biggest disadvantages is that it usually takes 1-2 weeks for the assets on the Layer 2 network to enter the main network. If you set it too short, your security will be relatively low, and this period of time will cause great harm to the user experience. If you want to transfer funds to the main network on the Layer 2 network, you may have to wait for so long.

Another shortcoming is the Layer 2 network made by Optimistic. Although it is a second-layer network, it is also a main network. It also has a consensus mechanism and some elements of the security of the main network itself. In many cases, the security of these networks is also a big disadvantage. Can it withstand 51% attacks? What kind of consensus mechanism is it? Will it cause various attacks by itself, and the loss of assets has already occurred on the Layer 2 network.

So to sum up the advantage of Optimistic is that it can be implemented the fastest because it is compatible with the existing Ethereum mainnet virtual machine. The biggest disadvantage is the challenge time for assets to return to the main network, as well as the security of its own network. The other school, ZK Rollup, uses zero-knowledge proofs. The application of zero-knowledge proofs here is mainly for challenging time. That is to say, I use some zero-knowledge proofs to effectively change the way of challenging time. .

Therefore, the biggest advantage of ZK's technical route is that it generally does not need to challenge the time, and can realize minute-level transfers. Your assets can be transferred to the Ethereum mainnet in minutes on the Layer 2 network. From the perspective of users, this is a great convenience. The ZK solution also has disadvantages. Its main disadvantage is that it does not currently support general-purpose virtual machines. Although related technologies are still being developed and may be supported in the future, overall its technical complexity is relatively high. .

So from the perspective of time, whether it can catch up with this wave, that is to say, you have to wait a long time for it to mature slowly. This is a relatively big shortcoming at present. Now if it is a ZK Layer 2 mainnet launch, generally you are unlikely to be able to seamlessly transplant the DApps on the current Ethereum mainnet, which is its first major shortcoming.

The second biggest disadvantage is the zero-knowledge proof itself, which is actually a double-edged sword, with both advantages and disadvantages. The biggest disadvantage is that it is actually a very slow and computationally consuming technology. The user experience is not particularly good, because we need to generate a so-called proof, the so-called zero-knowledge proof. The process of generating the proof is time-consuming. If your device performance is not good, it is likely to be stuck in that place or very hot.

So to sum up the advantages of zk technology, the main reason is that the challenge time is greatly reduced, and this kind of transfer at the minute level can be realized. The main disadvantage is the complexity of the technology itself, which will also bring some security issues. Concerns, because it is too complicated, it is usually not so easy to audit, and currently does not support the more general EVM (Ethereum Virtual Machine). Another major shortcoming is the user experience. User friendliness is not so ideal at present, mainly because of these two points.

Ouyi OKEx Intelligence Agency: Last time you were a guest on our interview program, you said that the current Ethereum community does not pay enough attention to Layer 2. Now that 4 months have passed, Layer 2 has been written into the roadmap of Ethereum 2.0. Does it mean that the status quo of the Ethereum community not paying enough attention to Layer 2 will change?

Tan Guopeng: That is indeed the case. From the current point of view, the attention of the Ethereum Foundation, including Vitalik, to the development of Layer 2 has been significantly stronger than before. They also realized that for ETH2.0, far water cannot save near fire, and the current development status of Ethereum is urgent. So in the short term, on these core issues, Ethereum expects that Layer 2 can bring some relief to the pressure on its entire main network, allowing Ethereum to return to normal operation. So at present this should be included in a stage of key development.

Ouyi OKEx Intelligence Agency: You thought that Ethereum Layer 2 is the correct direction for Ethereum expansion. You do not agree with the route of Ethereum 2.0 or raised some doubts. So you still hold or retain this view today ?

Tan Guopeng: It may be too absolute to say that I do not agree with ETH2.0 at all. The current attitude has not changed much from before, but in general, because the ETH2.0 plan is too far away, the distant water cannot save the near fire, and the development of ETH2.0 itself does not conflict with Layer 2 itself.

In the future, we can imagine that there may be two scenarios. One scenario is that Layer 2 develops so well that the Ethereum mainnet is less congested, or there is less need for expansion. From this perspective, ETH2.0 may become meaningless. Because ETH2.0 sharding only increases the complexity of the network, and the complexity itself is only to solve network congestion. If the network is not congested, there is no need to increase the complexity.

Another scenario is that the development of Layer 2 is not so good, which means that the Ethereum main network is still relatively congested in the long run. At this time, ETH2.0 may be a necessary choice. From this perspective, ETH2.0 has a great inevitability.

So if we make a prediction, whether Layer 2 will achieve the situation I just mentioned in the future, we have to consider the advantages and disadvantages of Layer 2 itself. The Layer 2 network itself does have some problems of its own, and the Ethereum Layer 2 is not as scientific and advanced as the design of the Polkadot parachain. The Polkadot parachain can enjoy some of the security of its main network, while Ethereum Layer 2 cannot enjoy any security of the Ethereum network. No matter which Layer 2 technology it is, it has its shortcomings.

So it is very likely that Layer 2 will develop to a certain extent in the future, but it may not develop so well that the Ethereum mainnet does not need to be expanded. So in the long run, ETH2.0 also has its inevitability, so my overall point of view should now become: In the long run, I agree with the expansion route of ETH2.0, and in the short term it depends on the expansion of Layer 2 To solve the immediate urgent need.

Ouyi OKEx Intelligence Agency: At present, we have observed that mainstream Ethereum DeFi projects such as Uniswap, Curve, and Aave are trying to migrate to Layer 2. In addition, some time ago, the tokens of Ethereum Layer 2 projects have seen skyrocketing prices. Can it be considered that Layer 2 has made significant progress?

Tan Guopeng: As far as I know, in fact, Layer 2 has not made substantial progress. That is to say, no successful project has been successfully operating on Layer 2 for a long time. However, DeFi projects are migrating to Layer 2 or it is not necessarily withdrawn from the main network. Layer 2 is another option. This trend has just begun, and it will definitely become a norm in the future.

Including the recent fact that many projects have also turned to Layer 2. The demand for this kind of transfer is currently huge. The main reason is that the handling fee of the Ethereum mainnet we mentioned at the beginning is too high, so from the perspective of prediction He said that there will indeed be large-scale Layer 2 applications in the future, and the DeFi projects mentioned by the host just now are very likely to be deployed on the corresponding Layer 2 networks one after another. So judging from the time point, now is also the eve of the Layer 2 network explosion.

Ouyi OKEx Intelligence Agency: The congestion of the Ethereum network has actually existed for a long time, and it did not appear today. Moreover, Layer 2 has been proposed for many years, but it has not been widely used. In your opinion, why is there such a situation? Does it have something to do with the compatibility of Ethereum itself?

Tan Guopeng: Although Layer 2 is a very early concept, it existed as early as Bitcoin, including what we call Rootstock (RSK) or Lightning Network, which belong to Layer 2. But the Layer 2 we talked about in the past two years is not the same thing as what we talk about now. The Layer 2 we talked about in the past two years was mainly aimed at the Lightning Network or the plasma technology represented by the OMG project. A typical feature of this technology is that its shortcomings are too obvious.

As I have mentioned many times in previous articles on Lightning Network, it has some essential problems, especially that it is not suitable for such sporadic transactions, and has major shortcomings such as the need for pledges, etc., which has caused its application to be greatly affected. limits.

In addition, if plasma is viewed from the perspective of OMG network implementation, its idea is actually relatively old. The OMG network implements a Layer 2 network of the UTXO model. What kind of problem? In addition to the relatively long challenge time for entering and exiting the main network we just mentioned, it itself is not compatible with Ethereum's EVM. It is such a network that is only suitable for token transfers.

The Layer 2 we are talking about now is mainly aimed at the emergence of booming DeFi applications. We need to deploy DApps on the new Layer 2 network. If you can help me achieve this goal, it has the potential to lead to great development. Because the DeFi project itself has driven a lot of users, whichever network it is deployed on, there will be a lot of users flooding to that network, and the transfer of tokens in the past did not have such an effect. So the Layer 2 in the past two years is not the same thing as the Layer 2 we are discussing now, especially the Optimistic and zk technologies we just talked about have been greatly improved, so this is one of the reasons why we focus on Layer 2 now .

Ouyi OKEx Intelligence Agency: Layer 2 is running outside of Ethereum. Assuming that Layer 2 of Ethereum will be greatly developed in the future, will it go to an extreme in the future, for example, resulting in a sharp drop in the frequency of use of the Ethereum network, which in turn will affect Huge negative impact on the price of ETH tokens?

Tan Guopeng: That’s true. The premise has already been mentioned just now. If a certain Layer 2 project is too successful, it may indeed greatly reduce the user’s demand for using the Ethereum mainnet, so that the Ethereum mainnet becomes useless. Too much value. But can this goal be achieved? At present, some Layer 2 technologies are still quite difficult. So I am more inclined to think that Layer 2 is a relatively phased solution at present, that is to say, after the successful operation of Ethereum 2.0, the demand for Layer 2 may be greatly reduced.

Another point is that the current bull market has created a huge demand for Layer 2. So my overall view on Layer 2 still has a certain time limit, but it does not rule out that the team of a certain Layer 2 project is so good that Layer 2 itself will develop very robustly in the future. Because we know that if a Layer 2 develops very well, we can even play in Layer 2 itself without the main network. In this way, it may also evolve into a huge network by itself.

So I personally make a prediction: Layer 2 may relieve the pressure on the Ethereum mainnet to a certain extent. But before the arrival of ETH2.0, the Ethereum mainnet will continue to be congested even with Layer 2. Similar to the state of traffic congestion in our current metropolises of Beijing and Shanghai, it may become a norm.

Ouyi OKEx Intelligence Agency: Currently, in order to solve the problem of excessive gas fees, the Ethereum community proposed the EIP-1559 proposal, which is considered to have moved the cheese of the Ethereum miners and has been resisted by a large number of Ethereum mining pools. Are you How do you view the EIP-1559 proposal and the behavior of miners? Will this change to PoS from ETH2.0 in the future will encounter stronger resistance from miners?

Tan Guopeng: EIP-1559 is actually a very good question. I just wrote a related article two days ago. Although there are many discussions, not many people can understand the principles in depth.

First of all, 1559 cannot solve the problem of high transaction fees, and it is not a proposal specially designed for capacity expansion. If we compare 1559 with the current fee mechanism, we will find that 1559 does have a series of advantages, and this advantage is mainly an advantage at the user level or the wallet developer level.

At present, when our users use Ethereum transactions, we often need you to speed up the transaction, because the Gas price you give may be too low, or it is not low when you give it, but when you send it because the transaction volume is too large, Others are higher than you, so your transaction has not been confirmed, so we need frequent users to participate in it, constantly send new transactions, and give higher miner fees.

After using 1559, there are some base fee mechanisms in it. In fact, some parameters can be calculated automatically by the system, and there is no need to manually decide when sending transactions. In this way, for our commonly used behavior of a user sending a transaction, he can delay deciding how much the handling fee is. Within the upper limit range given by the user, I can decide how much handling fee I spend according to the current network status.

That is to say, from the perspective of users or wallet developers, 1559 is indeed superior to the traditional gas price mechanism that we are using now, but it cannot solve the current network congestion. In the past, you may have to spend 300 yuan as a handling fee , to get confirmation of a transaction. After using 1559, you may need to spend 288 yuan. The 12 yuan you save is only because you let the system do some things for you. The things the system does are usually more scientific and labor-saving, so you save a little money.

In addition, 1559 also has a certain expansion effect, which is an artificial expansion. You can read an article about 1559 that I published on "Talk about the blockchain" before, and you will know the general content, but this is not unique to 1559 itself. A certain degree of capacity expansion has been carried out.

1559 encountered resistance from miners because from the perspective of the agreement itself, it seems to deprive miners of some rights, especially the gas fee, which is directly destroyed instead of rewarded to miners. On the surface, the income of miners will change. In fact, I don’t know whether it is beneficial to the entire ecology in the long run, so that the overall income of miners will increase. This is just a matter of opinion.

Another topic, this question mentions that when ETH2.0 turns to PoS in the future, will it be resisted by more miners? This is very possible, because the ETH2.0 schedule is still early, what will happen in the future? In fact, there are no more than three results. One result is that the miners leave the market and everyone stops mining, because you no longer need to use hardware to mine. This is the first case. In the second case, the miners forked Ethereum, that is, the PoW version of ETH continued to run forward, forming a forked coin. The third possibility is that miners will use these devices to mine other networks that can be mined, such as networks like ETC. What will happen in the future, in fact, is still unknown, and we have to see the specific situation at that time. But the first situation is obviously unlikely. These devices will definitely be used, so there may be a fork, or everyone will turn to the ETC network.

Ouyi OKEx Intelligence Bureau: There is a view that the current Ethereum has entered a crossroads. The front is the long uncertainty of ETH2.0, and the back is the inflexibility of Ethereum itself, which cannot provide good support for Layer2. , coupled with the layers of encirclement of mainstream public chains and exchange public chains, then, is Ethereum at the critical moment of the "last battle"?

Tan Guopeng: Actually, it is a question of different opinions. Regarding the future structure of the entire public chain, is the current state of ETH very dangerous? It is still a matter of opinion. Now the core problems of Ethereum are the handling fees and expansion issues we just mentioned, but these problems themselves are also caused by the great development of ETH and its very prosperous state, which led to such a situation.

From my point of view, other current competitors, Polkadot is considered the most powerful or the most forward-looking project, but Polkadot itself does not appear from the perspective of Ethereum competitors, the platform it is positioning And the role he plays has almost no place to compete with Ethereum, and the rapid development of other exchange public chains and the application of Layer 2 are actually benefiting from the very prosperous state of the Ethereum network.

So it is probably not true to say that the development of the ETH network is so prosperous that it kills itself. But he is not without danger, it is indeed in danger. The so-called danger is that there must be a solution. If the solution cannot be effectively solved again and again, so that the project party makes the developers lose confidence, it is naturally very dangerous.

So from a personal point of view, Ethereum is indeed in a difficult moment now, the moment when it needs to solve the problem most, but I think it will win in the end. Among the many competitors, Ethereum will finally have the last laugh, and some other good projects will naturally find their platform.

The reason why I appreciate a project like Polkadot is that in addition to its forward-looking technology, it also has a positioning. It does not directly compete with Ethereum. The so-called does not directly compete with Ethereum. , which means that they are different in form. Ethereum is a unified smart contract platform, while Polkadot is actually a connector and a framework. Even the Polkadot network itself does not support smart contracts, and The public chains of some other exchanges are very likely to enjoy the dividends of the development of Ethereum, and the dividends of the era of various DeFi projects in the current bull market state. In the long run, it is difficult for them to really challenge Ethereum status.

Ouyi OKEx Intelligence Bureau: In the last interview, you mentioned that Polkadot’s Substrate may play a role in promoting the blockchain industry, and there is also a view that Polkadot’s Substrate may become the “JAVA Spring” of the blockchain industry. ", what do you think of this analogy?

Tan Guopeng: Indeed, Substrate is currently the most technologically advanced blockchain framework. If it is a new public chain, I think it is the best choice at present. So from this perspective, it is the JAVA Spring of the blockchain industry, and there can be such an analogy. But from the perspective of the future, my point of view is that the main competition space in the future is in the application, not in the public chain itself.

The DeFi application is the best example. Although the competition in the public chain is still going on, there are not many remaining oligarchs, except for the Polkadot we just mentioned, and some recent popular Cardano or various Apart from the public chains of large exchanges, there is not much competition in the remaining public chains.

The following are interactive questions and answers for fans:

The following are interactive questions and answers for fans:

@bitmoss sauce: If I am an Ethereum L2 developer and encounter the problem that Ethereum L1 is not flexible enough to be compatible with L2, can I propose a motion to upgrade Ethereum? Is the above situation a problem often encountered by Ethereum L2 developers?

Tan Guopeng: I will answer this question in two parts. If you think there is something worth optimizing on the Ethereum mainnet, anyone can raise EIP at any time. Usually if your opinion is more reasonable, you will get a lot of feedback and response. If you are good enough, you can even be accommodated in the new EIP. In the second part, I will answer this fan's question. The question itself is open to discussion. What does it mean? That is, if you are a developer of L2, and the Ethereum L2 is not flexible enough, this situation will not happen. What do you mean?

There is no such thing as flexible or inflexible in the Ethereum network. All Layer 1 is a smart contract, and this smart contract is written by you yourself, which means that the flexibility of Layer 1 is within your control, so it will not appear. Layer 2 developers think that Layer 1 is not flexible enough.

Of course, Ethereum does not have a relatively advanced design framework like the Polkadot network. You can borrow some resources from me, and even help you package them. Ethereum does not have such a mechanism. But the Ethereum Layer 1 we are facing is a smart contract with intelligent Turing completeness, you can play and write at will. Therefore, there is currently no problem of insufficient flexibility between Layer 1 and Layer 2.

@不会打红麻君: There is a view that Ethereum does not need L2, and L2 has been proven to be a failure on Bitcoin. For example, Lightning Network is a failure on Bitcoin. Is this point of view correct?

Tan Guopeng: This question was actually mentioned during the explanation just now. Let me summarize it again. If you say that Ethereum does not need the Lightning Network because it failed on Bitcoin, I may support your view. Because of the two core problems of the Lightning Network, one requires pledge, and the other is not suitable for occasional transfers, so that it cannot solve some of the most common needs, so it is not good.

But the Layer 2 we are talking about now is mainly new technologies such as Optimistic Rollup and ZK Rollup. This is the biggest feature of the new technology, and it supports smart contracts and DApps. The biggest appeal now is the project parties of these DApps. They need to allow users of these projects to use them normally, especially when they spend a small amount of handling fees. The huge demand exists, causing Layer 2 to become the best or even the only choice at present.

@张思 nail art machine: Some time ago, the price of L2 tokens rose slightly, but according to observations, these applications have not landed, so they have not risen sharply. I always feel that L2 projects are still far from real applications. Long way to go?

Tan Guopeng: Optimistic's most popular project is called Optimism. Optimism and Optimistic are two different things. Optimistic is a technology we are talking about. Optimism is a project. Optimism.io is its official website. This project applies such a technology of Optimistic. It should be on the mainnet in March this year. Online, because many projects may be migrated, including the Uniswap we may be familiar with, so the real application may be such a time before the mainnet goes live. Of course, it is hard to say whether there will be twists and turns in the future, because many projects are still relatively new, so I think it is only a few months away from real application, because now it is urgent and very urgent. Many DApps are in a state that cannot be used normally. The so-called unusable means that the handling fee is too high and it is impossible to play normally.

@圆仁不食: At present, ETH has a tendency to become another value storage tool on Wall Street after BTC. What do you think of this trend?

Tan Guopeng: From my understanding of ETH, I think this is a very normal trend. Because as a store of value, ETH has a lot in common with Bitcoin, such as scarcity, irreproducibility, and extensive trust. Although their positioning is different, they all have a lot in common in terms of value storage. So I think this trend is a very normal and inevitable trend. Even from a longer-term perspective, I think the potential of ETH is even greater than that of Bitcoin, so judging from their support choices on Wall Street, it is also in line with my understanding. But this piece of investment is always a matter of opinion, and it needs to be proved in the future.

I saw that the questions in the discussion area of ​​the live broadcast room mainly focused on which coins are available in Layer 2, and even which coins are recommended. One thing, if you sort out such things, you can make some judgments and decisions by yourself.

OMG is a relatively old Layer 2. From the perspective of time, it is the first project to concentrate on doing Ethereum OMG. Its technology is Plasma. This technology is relatively similar to Optimistic now, but Inferior to Optimistic, the advantage of OMG is that it was done earlier, and it can even be considered more foresighted. In the long run, you can see that you have to expand some development, but the disadvantage is that the technology itself is a bit old, plus it The implemented solution is based on the UTXO model and does not support EVM. From this perspective, it is very likely that it will not be able to catch up with such a prosperous development of DApp.

Matic, another project that is also a technology of Plasma is called Matic, which also uses a similar technology. It has some successes in operations, other aspects, and ecological aspects. I think everyone needs to study it individually.

Optimistic, there are many related projects, the more popular Optimism, you may see a lot of news in the past two days, and it may be the fastest to come out, and then other DApps will deploy such a project.

There are also many ZK projects, the most common one is the well-known Loopring.

When you look at whether a Layer 2 project has a future, you can look at it from the following points: First, whether it supports the general-purpose Ethereum EVM is very important. If you support the general-purpose Ethereum EVM, this It means that many DeFi projects can be migrated, which is the most valuable function of a Layer 2 platform. If you don't support a general-purpose EVM, such a Layer 2 project is likely to just follow the current gust of wind, and the project does not have its own value.

Another point you can pay attention to is whether it is focusing on making itself a general network, or just implementing itself. I saw that there are some projects that can realize the function of trading, but it is not a Layer 2 platform, and it does not support the deployment of other projects like Uniswap, but it can realize functions similar to Uniswap. And such a project is not universal in my personal understanding.

We need to look at some Layer 2 platforms that are more versatile and can attract more DeFi or DApp projects. Regarding Loopring, although I said that I have been working on ZK Rollup for a long time, I didn’t have a deep understanding of whether they are currently working on a general platform, because running their own exchange and becoming a platform is not the same as carrying other APP ideas or prospects. the same. I am more concerned or inclined to find some general-purpose platforms, rather than running my own exchange or my own DApp.

Another point I want to remind everyone is that because Layer 2 has already received widespread attention, it’s not like when we first started the show, there were not many people who followed it. In fact, I posted on my Weibo a few months ago It shared the possible development of Layer 2 in the future. It may be more appropriate for you to lay out the layout at that time. After all, the popularity is very high now, and what you can see can also be seen by others. If it comes out, the price will be very high, so From an investment point of view, I suggest that everyone should be cautious.

In addition, let me emphasize at the end that my overall view on Layer 2 is that in the long run, it may be a phased expansion plan. If you look at it in a very long-term view, investing in Layer 2 may not be as stable as investing in ETH , but I am talking about a particularly long-term, 5-10-year perspective. Many tokens, we have experienced the bull market of 17 and 13 years, you will know that how high the rise is, how hard the fall is, so when you talk about what kind of thing you are doing, you must be very aware of it , and then know to be able to leave the market at the right time.