Ethereum Founder Recommends L2 Solutions for ETH Payments

Ethereum co-founder Vitalik Buterin has suggested that more people should use ETH for payments opting for Layer 2 solutions 
Published by
Ethereum Founder Recommends L2 Solutions for ETH Payments

Ethereum co-founder Vitalik Buterin has suggested that more people should use ETH for payments opting for Layer 2 solutions to avoid hefty gas fees.

In a response to a tweet suggesting that payments platform Square refusing to support crypto payments was ‘dumb’, Ethereum co-founder Vitalik Buterin has highlighted the benefits of supporting the digital asset as a payment method.

He stated that using ETH for payments would also add support for other crypto assets including MKR, UNI, wBTC, and any other stablecoin.

Naturally, there was quite a reaction from the crypto community considering that transfer fees have skyrocketed in recent months making Ethereum slow and expensive to use.

The DeFi farming frenzy, driven by yield jumping ‘degens’ (degenerate farmers), has resulted in massive demand being placed on Ethereum which has driven network fees through the roof.

September has witnessed the highest gas fees on record with several spikes taking the average cost into double figures. At the time of writing, average transaction fees had fallen to around $3 according to bitinfocharts.com, but that is still way too high for the average user.

Average tx fees – bitinfocharts.com

Buterin responded with a suggestion to use Layer 2 options such as zkSync, Loopring, or the OMG Network. Matter Labs launched the L2 payments gateway zkSync to mainnet in mid-June this year, with the claim that it enables ‘PayPal-scale’ throughput for dApps or wallets.

Ethereum zkRollup exchange and payment protocol Loopring launched a Layer 2 token swap DEX in mid-September for high speed, low-cost token exchanges. Meanwhile, the OMG Network, which launched in 2017 to provide Plasma scaling for Ethereum, integrated the Tether stablecoin in August to facilitate cost-efficient payments.

There are other options such as the Matic Network but Buterin did not mention them in this dialogue.

Advertisement

When ETH 2.0?

The real scaling for Ethereum will come when Serenity Phase 1 is launched but that is still at least a year away. Beacon Chain, or Phase 0, must be rolled out first and the good news is that it could be before the end of 2020.

Testing for Beacon Chain is entering the final stages now with around 65,000 validators operating on the Medalla testnet. A further testnet called ‘Spadina’ was recently run as a ‘dress rehearsal’ for ETH 2.0 genesis but it failed due to client issues and low participation. Another testnet called ‘Zinken’ has been planned for launch on Oct. 12.

Until Phase 1 is ready, these Layer 2 solutions are the only viable options for avoiding heavy gas fees.

Advertisement
Share
Martin Young

Martin has been writing on cyber security and infotech for two decades. He has previous forex trading experience and has been covering the blockchain and crypto industry since 2017.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Michael Saylor’s Strategy Eyes S&P 500 Spot Amid Bitcoin-Backed Credit Products Launch

Michael Saylor’s Strategy is setting its sights on the S&P 500 as it pushes forward…

October 31, 2025
  • News

Bitcoin White Paper Turns 17 Today as Satoshi’s $120B Fortune Climbs $2.8 Billion

Seventeen years ago today, Satoshi Nakamoto emailed a nine-page document that changed the world. It…

October 31, 2025
  • News

Will Crypto Market Rebound or Crash Ahead as 10X Research Tips Shorting Ethereum?

Bitcoin, Ethereum, XRP, and other altcoins tumbled amid the latest crypto market crash. Over $1.2…

October 31, 2025
  • News

Sam Bankman-Fried Says FTX Was “Never Bankrupt,” Crypto Community Reacts

Sam Bankman-Fried (SBF) team on Friday revealed an estimated $136 billion in petition-date holdings of…

October 31, 2025
  • News

XRP ETF Coming This November 13 As Canary Capital Submits Updated S-1 By Removing Roadblocks

Asset manager Canary Capital has submitted an updated S-1 filing to bring its spot XRP…

October 31, 2025
  • News

Canary XRP ETF Filing Removes SEC Delay Clause, Targets November Launch

Canary Funds has filed an updated S-1 registration for its XRP spot exchange-traded fund (ETF).…

October 31, 2025