Hermez – a fast scaling solution
A sudden boom in the decentralized finance (DeFi) market has given users several opportunities for purchasing and selling cryptocurrencies. However, during this DeFi boom, the Ethereum blockchain is continuously suffering through a massive strain due to which the world’s second-largest blockchain is unable to perform better and fast. Moreover, the average transaction fees have also skyrocketed on the blockchain.
Meanwhile, the identity management platform Iden3 has brought a new fast scaling solution for the Ethereum blockchain which has been successfully rolled out today. Iden3 is a company that specializes in the management of public blockchains’ identities. Its new scaling solution will make things a lot easier for the Ethereum blockchain.
Hermez will enable 2,000 transactions per second
According to the company Iden3, its newly-developed solution works efficiently and in a fast way. It will ensure a new way of scaling on the Ethereum blockchain for ETH transactions. Currently, the blockchain handles 15 transactions per second. However, Hermez will increase this rate by enabling the Ethereum blockchain to handle up to 2,000 transactions per second.
In the presence of Zk-rollups, the Ethereum blockchain can process more than one transaction simply by making groups of various transactions on different chains. As a result, it can process those transactions as one transaction on the network. It will decrease the burden of the blockchain.
Moreover, the importance of this latest scaling solution is that it will make the blockchain less expensive by decreasing per transaction cost on the blockchain without relying on the transaction fees of the mainnet.
The Co-Founder of Iden3 Jordi Baylina says, “zk-rollups will be the dominant scaling paradigm for at least the next couple of years in our industry.”
Proof of Donation
Apart from launching the scaling solution Hermez, Iden3 has also released a “decentralized bidding system” known as Proof of Donation. It is actually the mechanism of Hermez which lets users reinvest in the Ethereum community simply by funding their own projects.
Approximately, 40% of the earnings will be reinvested in the Ethereum community protocols and in some other projects.