In recent months, layer 2 projects have consistently seen higher combined transaction volumes than Ethereum’s base chain, skesslr writes
Decentralized finance platforms like GMX use smart contracts to allow users to transact without intermediaries, and they collect fees from users as a way to reward liquidity providers and community members. GMX has been so successful in recent months that, during a 24-hour period this past weekend, itEthereum transaction fees
skyrocketed last year in response to increased user demand, rollups – separate blockchains that bundle up and “settle” transactions on Ethereum – were viewed as an urgently needed solution to the chain’s growing accessibility problem. Unlike sidechains like Polygon PoS, which also bundle up transactions and settle them on Ethereum, rollups take advantage of Ethereum’s existing security apparatus.in reference to the mechanism they use to borrow Ethereum’s security.
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