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Average transaction costs have now shot up to $8.95, whilst executing complicated DeFi smart contracts is even more expensive. Uniswap gas fees for example, have reached a whopping $55 at the time of writing. With such astronomic fees, Ethereum can be prohibitively expensive, or simply cost-inefficient, for many of its uses. In particular, smaller transactions. Currently, the problem of scaling remains Ethereum’s biggest challenge, with a network capacity of only 14 transactions per second (tps). Yet solutions to Ethereum’s scaling problems already exist… As Vitalik suggests, using layer 2 (L2) solutions can help resolve some of Ethereum’s scaling issues, especially for simple transactions. Tether, the world’s largest stablecoin, recently added L2 transaction support through the OMG network, and is now also integrating ZK-Rollups to improve its transaction costs on Ethereum. However, Gluwacoin is not just a simple ERC-20 token. It also supports custom functions for non-custodial exchange. Therefore, it requires a scaling solution capable of executing complex Ethereum smart contracts with minimal friction. Having considered several possible scaling solutions, Gluwa is excited to announce that we have partnered with Luniverse to deliver a feature-complete, Ethereum-based sidechain for our users. Luniverse’s sidechain not only provides full Ethereum smart contract support, it also enables non-custodial exchange, features a block explorer, as well as a complete API and event listener to facilitate seamless cross-chain Gluwacoin transfer.
What this means for you…
The Gluwa mobile app will soon feature both a mainchain Ethereum wallet and a sidechain Luniverse wallet. A user will be able to transfer Gluwacoin between these wallets just as they would any other normal transaction. The mainchain wallet will remain fully integrated within the Ethereum ecosystem. However, transactions on the sidechain will be faster and cheaper than transactions on the Ethereum mainchain. Luniverse’s sidechain has improved scalability, supporting over 1000 tps. Whilst migrating transactions to a sidechain ensures that users do not need to compete for limited bandwidth on Ethereum. This allow us to offer lower transaction fees to users. Which wallet you choose is ultimately up to you. The decision should depend on your usage priorities. In both cases however, you will be the sole custodian of your wallet’s private key, ensuring that all users retain full custody of their assets, regardless of which wallet they choose to use.