This year in Ethereum is supposed to be dominated by increased adoption of L2 usage at the expense of L1. Recent events have confirmed it.
- Arbitrum usage
- Coinbase + Optimism
- Shopify adds Sing-in with Ethereum
1. Arbitrum usage
On February 22th Arbitrum One processed more transactions than Ethereum.
This is a big milestone for L2 projects, especially rollups and they were the first one to achieve it.
What are the key takeaways?
L2 rollups are here ready to be used. We can expect, that in the near future Optimism rollup may follow and others could join later this year.
2. Coinbase + Optimism
Another big thing in Ethereum ecosystem happened when Coinbase announced launch of Base – their own L2 network. And it will be built on Ethereum’s L2 Optimism rollup.
What are the key takeaways?
- they choose build Base on Ethereum instead of launching their own L2
- it will be all open source => more DeFi, less CeFi
- it will be an onchain home for Coinbase => great onboarding potential as they have 110+ million users
3. Shopify adds Sing-in with Ethereum
Sign-in with Ethereum is a new form of authentication that enables you to control your digital identity with your Ethereum account and ENS profile instead of relying on a traditional intermediary like Google, Facebook and others.
What it means?
It’s really simple. When you use some online service and you are required to login, instead of using your Gmail or Facebook account, you can log in by connecting your Ethereum wallet.
As Ethereum usage will be growing, we will see more and more services building-in this great funcionality. Lately it was Shopify and others may join soon.
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Not financial or tax advice. This post is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions This post is not tax advice. Talk to your accountant. Do your own research.