Galaxy Research: Bitcoin faces challenges as a data availability layer, and L2 expansion solutions may require trade-offs
Odaily2024/08/04 14:56
By:Odaily
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Odaily News Galaxy Research recently reported that
Bitcoin faces severe challenges as a data availability (DA) layer. The main points are as follows: Scarce block space: Bitcoin block size is capped at 4MB, and the data published by ZK-Rollup every 6-8 blocks may occupy 10% of the block space. High cost: At a rate of 10-50 sat/vByte, the monthly data publishing cost of Rollup is about $4.6-2.3 million. Economic feasibility: Rollup needs to process a large number of transactions per month and charge enough fees to make a profit. For example, with a monthly transaction volume of 20 million, each transaction fee needs to be $0.05-0.23 to break even. Increased competition: The introduction of Rollup will increase competition for block space and may push up transaction fees for all users. Alternatives: If the cost is too high, Rollup may turn to alternative DA layers such as
Celestia, or build L3 solutions. Security trade-offs: Although using Bitcoin as a DA layer is costly, it can obtain unparalleled security and decentralization. The report believes that only a few Rollup projects can survive on the Bitcoin network, and recommends that projects explore strategies such as cooperating with miners and developing fee estimation engines to improve profitability.
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