What will happen to layer 2 networks?

[fuguebtc]

The main problem now lies in the amount of fees when transacting when using the eth network.So that users prefer to use the BSC and Polygon networks in every transaction they make.But it all depends on how much influence it has when merging eth in the future.  If users feel that they benefit from this merger, then they will definitely use this network in every transaction they make.But on the contrary

The merge will not cause Ethereum gas fees to drop rapidly as the goal of the merger is to move Ethereum from POW to POS to reduce the energy consumption of the Ethereum blockchain. In order to reduce gas fees and speed up the transaction process, it is necessary to wait for the next update. As a result, this upgrade does not affect Layer2 projects in any way, they will continue to support scaling for the ETH network.

[1714248285]

1714248285

[1714248285]

1714248285

[1714248285]

1714248285

[1714248285]

1714248285

[1714248285]

1714248285

[1714248285]

1714248285

[nicolas1979]

Eth merge is happening and soon we may see a super low transaction fees for eth transactions, the question is what will happen to layer 2 projects like arbitrum and optimism? They doing really great in scaling Ethereum with swap fees no more than 0.2$ but the question is if will keep existing in the future

The Ethereum blockchain swap fee is not 100% determined by the blockchain, but also depends on the swap platform it uses. The swap process costs three times, namely the confirmation fee is twice, and the platform fee is taken based on the swapped coins. Although arbitrum and optimism have low costs, of course the Ethereum blockchain cannot be separated from the two projects. $0.2 is the equivalent of 0.16 OP, I don't think it's a small amount if the OP's price gets high.

[Abiky]

The merge will not cause Ethereum gas fees to drop rapidly as the goal of the merger is to move Ethereum from POW to POS to reduce the energy consumption of the Ethereum blockchain. In order to reduce gas fees and speed up the transaction process, it is necessary to wait for the next update. As a result, this upgrade does not affect Layer2 projects in any way, they will continue to support scaling for the ETH network.

Exactly. The Merge will only make ETH more energy efficient. But the real deal will happen in subsequent network upgrades targeted to improve the underlying Blockchain network's transaction capacity. Sharding and Layer-2 scaling solutions will make ETH a force to reckon with. I simply don't get why there's a lot of hype surrounding the PoS upgrade when we've already had PoS coins even before Ethereum's Vitalik Buterin announced it. People think this is innovation, but they've got it all wrong. I wouldn't be surprised if ETH hits the ceiling right after "The Merge" is complete.

No matter how scalable the main blockchain network becomes, Layer-2 scaling solutions will always be necessary to help reduce future Blockchain bloat. The main objective is to include as much people as possible into decentralized cryptocurrencies in order to become a huge contender of existing Fiat currencies. With scaling solutions on the way, crypto will become truly unstoppable. Just my opinion

[minairia3]

Eth merge is happening and soon we may see a super low transaction fees for eth transactions, the question is what will happen to layer 2 projects like arbitrum and optimism? They doing really great in scaling Ethereum with swap fees no more than 0.2$ but the question is if will keep existing in the future

With expensive transaction fees like now ETH can survive and become the choice of many projects, of course all investors know with the reputation of ETH which has become the strongest altcoins, if later the transaction costs become cheap, of course we think positively that the higher the transaction volume will occur.

But unfortunately as @fuguebtc said, upgrading to POS will not make ethereum cheaper as we thought, gas fees will start low when ethereum gets other upgrades like sharding...and it will be in the coming years not this year.

Layer 2 projects will remain unaffected by this upgrade of ethereum, additionally it will provide ethereum with more scalability and reduce pressure on ethereum's main blockchain.

[GreatArkansas]

Eth merge is happening and soon we may see a super low transaction fees for eth transactions, the question is what will happen to layer 2 projects like arbitrum and optimism? They doing really great in scaling Ethereum with swap fees no more than 0.2$ but the question is if will keep existing in the future

With expensive transaction fees like now ETH can survive and become the choice of many projects, of course all investors know with the reputation of ETH which has become the strongest altcoins, if later the transaction costs become cheap, of course we think positively that the higher the transaction volume will occur.

But unfortunately as @fuguebtc said, upgrading to POS will not make ethereum cheaper as we thought, gas fees will start low when ethereum gets other upgrades like sharding...and it will be in the coming years not this year.
(...)

Exactly. This is the common misconception or wrong impression of the upcoming "The Merge" event for Ethereum, it will not make the transaction fee lower after the merge, very wrong. This event (The Merge) is the transition from Proof of Work - (POW) to Proof of stake (POS).

It is stated here: Misconception: "The Merge will reduce gas fees."

[Widdop37]

Good question, it looks like many layer 2 projects will be abandoned after Ethereum merge and PoS is active but I don't see things that way, I believe whatever will happen depends on project builders ( developers ), we can't tell them to start building on Erc 20 if they believe that Matic is the right place to be, see? Layer 1 and 2 projects will survive because many developers will still prefer them than Ethereum.

[Jackl87]

Eth merge is happening and soon we may see a super low transaction fees for eth transactions, the question is what will happen to layer 2 projects like arbitrum and optimism? They doing really great in scaling Ethereum with swap fees no more than 0.2$ but the question is if will keep existing in the future

That is also the big question that i have asked myself quite a lot in the last few days. I personally think that even if the merge will be successful and everything is running as expected we still have to wait and see how the consequences for the transaction fees on the ethereum network will be. It will be especially interesting to see how high the transaction fees will be when the network becomes congested during a dump or a pump.
If the transaction fees on native Ethereum can really stay low even at a high congestion then i think that layer 2 solutions don't really have a reason to exist anymore to be honest, but of course we will have to wait and see.

[Abiky]

But unfortunately as @fuguebtc said, upgrading to POS will not make ethereum cheaper as we thought, gas fees will start low when ethereum gets other upgrades like sharding...and it will be in the coming years not this year.

Layer 2 projects will remain unaffected by this upgrade of ethereum, additionally it will provide ethereum with more scalability and reduce pressure on ethereum's main blockchain.

Yes. Only a major network upgrade targeting the Blockchain's transaction capacity will help reduce gas fees and decrease transaction wait times. Even though the main ETH blockchain network will scale at some point in the future, Layer-2 networks won't be going anywhere because they prove to be an "extra boost" at times when the network becomes heavily congested. No matter what upgrades developers add to help improve the main chain's scalability, the network will be prone to clogging if the same becomes extremely popular. That's where scaling solutions like Arbitrum (ETH), Optimism (ETH), zkSync (ETH), and the Lightning Network (BTC) come in.

It's often best to have a separate scaling solution for the Blockchain to help protect decentralization as much as possible. Scaling only the main chain would increase storage and bandwidth costs for nodes, effectively making the Blockchain centralized (as only a few will be able to run the nodes). BCH ultimately failed with its on-chain scalability, so Layer-2 will be here to stay for a long, long time. Just my thoughts

[samuraijin]

Ethereum took a decision that made everyone wonder, why they didn't fix the issue regarding gas costs which are still high, why is it too hasty to develop 2 concepts into one, while the whole community is already defeated for the gas problem, at least the development team can fix it This problem is not just discussing the merging of 2 concepts.

[icalical]

can't really tell until we actually see how the PoS scale ETH network and how it affect the fee, will it actually reduce the gas fee significantly? If yes, then those layer 2 projects will be obsolete. It has no point to use layer two for ETH when the mainnet already has low fee.

[Abiky]

can't really tell until we actually see how the PoS scale ETH network and how it affect the fee, will it actually reduce the gas fee significantly? If yes, then those layer 2 projects will be obsolete. It has no point to use layer two for ETH when the mainnet already has low fee.

PoS won't reduce gas fees, but subsequent network upgrades will. Sharding is one of the most anticipated scaling techniques that will reduce gas fees and increase transaction throughput on the main chain by a long shot. Even though ETH by itself will become cheaper and faster than ever, Layer-2 networks will still be useful for micropayments and other sorts of things. They won't go away, because such networks will always be cheaper and faster to use than the main chain itself. The same can be said about Bitcoin's Lightning Network. Besides, the Blockchain will always be prone to congestion no matter how scalable it becomes. Off-chain scaling solutions help bring the masses into the world of crypto, so they will be with us for a long, long time. Just my thoughts