- Ethereum Layer 2 network Blast successfully launched its mainnet, allowing users to withdraw funds.
- The platform witnessed substantial early adoption, attracting over 180,000 users who collectively locked in more than $2.3 billion in total value.
In a significant stride toward enhancing Ethereum’s scalability, the Layer 2 network, Blast, has officially rolled out its mainnet, granting users the ability to withdraw their funds. The platform, spearheaded by Tieshun Roquerre, the founder of the NFT marketplace Blur, aspires to revolutionize the landscape by providing a native yield model for both ether and stablecoins. Early access to Blast garnered overwhelming support, with more than 180,000 users contributing over $2.3 billion in total value locked (TVL) even before the mainnet launch.
The assets onboarded to the platform include approximately 469,000 ETH, 77.3 million USDC, 67.1 million USDT, 148,000 stETH, and 24.7 million DAI. With the live mainnet now operational, users can execute withdrawals seamlessly. Blast introduces an enticing yield structure, offering 4% interest for ether and an appealing 5% for stablecoins.
Leading up to the mainnet release, observant users noted the emergence of an unofficial bridge to the platform, drawing parallels to the events preceding Coinbase’s Layer 2 Base launch in August 2023. The strong pre-launch performance of Blast, amassing over $2 billion in TVL, positions it closely behind Layer 2 giants like Arbitrum One and OP Mainnet, anticipating a surge in enthusiasm and speculation upon the official launch, including a potential airdrop.
Blast’s journey began with early access opening in late November 2023, enabling users to start earning yields through bridging and Blast Points – a rewarding system for both bridging assets to other networks and referring users to the platform. The platform operates on the principle that markets gravitate towards efficiency, with liquidity directed to where the highest yield is attainable. Users’ balances automatically compound and earn additional Blast rewards.
While some critics raised concerns about the platform’s model resembling a Ponzi scheme, particularly due to the inability to withdraw rewards until the mainnet launch, Roquerre, known as Pacman, refuted the claims. He clarified that the yield structure is sustainable, deriving from the liquid staking protocol Lido and DeFi protocol MakerDAO.
In November 2023, Blast secured a substantial funding round of $20 million, led by prominent crypto-focused venture firms Paradigm and Standard Crypto. Notably, the ability to redeem Blast Points is tentatively set to commence on May 24.
Ethereum Layer 2 Revolutionizes Blockchain Scalability
Layer 2 (L2) emerges as a game-changer in addressing Ethereum’s trilemma, offering a strategic set of scaling solutions. L2 represents a distinct blockchain seamlessly extending Ethereum while inheriting its formidable security guarantees. The blockchain trilemma dictates that a blockchain must compromise one of three critical properties—decentralization, security, or scalability. With Ethereum, handling over 1 million transactions daily, the surge in demand often leads to heightened transaction fees, impacting accessibility.
The primary objective of Layer 2 is to amplify transaction throughput, achieving higher transactions per second without compromising decentralization or security. Ethereum’s native Layer 1, processing a limited 15 transactions per second, encounters congestion during peak demand, resulting in elevated fees that limit user accessibility. Layer 2 networks present a revolutionary solution, reducing fees significantly by conducting transactions off the Layer-1 blockchain.
Layer 2 networks offer a host of benefits, including substantial fee reductions by consolidating multiple off-chain transactions into a single Layer 1 transaction, fostering enhanced accessibility across user demographics. Importantly, the security of Layer 2 blockchains is underpinned by settling transactions on Ethereum Mainnet, leveraging the robust security framework of the Ethereum network. This innovative approach not only ensures cost-effectiveness but also opens avenues for projects to diversify into new applications, enriched user experiences, and expanded use cases. The Layer 2 revolution signifies a pivotal step in Ethereum’s journey towards achieving scalability without compromising its foundational principles.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
