DXdao Announces “Rails” a Layer 2 Solution For Ethereum
DXdao and Loopring collaboration Layer 2 solution “Rails” claims to be Ethereum’s upcoming gasless infrastructure. Rails is a payment solution that enables the effortless transfer of ETH and ERC20 tokens between users on the protocol.
It leverages Loopring’s zkRollup and Relayer API to facilitate non-custodial transfers via MetaMask. DXdao is responsible for ensuring the efficient operations of the frontend.
Rails’ release is imminent, set to happen in the near future, however, no clear date has been provided by DXdao. The product itself can only process deposits, withdrawals, and transfers at this point, however, according to DXdao, this is just the beginning.
After Rails is launched, it will serve as the foundation for creating a network of products and services that users can use for inexpensive experiments and value transfers.
Ethereum’s unsatiable DeFi hunger resulted in a highly volatile transaction market, causing gas prices to spike up to 500 gwei. Even though costly gas prices smaller players out of the DeFi game, it’s undoubtedly good for the network. It attracts more miners, puts pressure on developers to find new solutions, and exacerbates the need for innovation.
Vitalik Buterin is the first among the “crypto elite” to highlight the fact that layer 2 solutions are readily available, and Rails is really just another choice in a sea of options.
In the words of Vitalik “We just need to use it.”
Layer 2 integration in DeFi will eliminate a lot of the unnecessary costs associated with entering and exiting positions. Whether this is through Rails or another protocol, it doesn’t really matter in the grand scheme of things.
With Layer 2, DeFi will involve 2 gas transactions, entering, and exiting the marketplace. Market efficiency will improve and users will be free to move their assets as they desire, at near-zero costs.
Disclaimer: The author is biased on the project. Crypto-news.net is not responsible for any direct or indirect losses.