ConsenSys, a leading analytics platform, has announced its partnership with Mastercard to aid in the rollout of ConsenSys Rollups. These rollups will offer enterprise-grade scalability to financial institutions and other users seeking scalability.
ConsenSys will be tapping into the high level of expertise the Mastercard engineering team offers to develop the ConsenSys Rollups solution.
Bringing scalability to Ethereum
The Ethereum blockchain has recorded immense growth over the years, but this growth has also presented challenges because of the rising gas fees and the slow speed at which transactions on the blockchain are being processed.
The blog post by ConsenSys states that the firm will work together with Mastercard to co-create the needed building blocks that will bring scalability to the Ethereum mainnet.
Vitalik Buterin, Ethereum’s co-founder, has been advocating for rollups on the blockchain in a bid to achieve scalability. ConsenSys Rollups will be an “innovative modular software solution” that will work with permissioned blockchain applications to provide scalability and boost privacy.
The rollups will be available to any blockchain that is interoperable with the Ethereum Virtual Machine (EVM). Moreover, it will be available on the Ethereum mainnet. Zero-knowledge (ZK) proofs will protect transaction details to ensure that sensitive transaction data is not shared on public blockchains.
According to ConsenSys, the scalability solutions enabled through the Rollups will have a throughput of up to 10,000 transactions per second (TPS) through a private chain. On private chains and the Ethereum network, the rollups will have a throughput of 300 TPS and 15 TPS, respectively.
The Global Lead of Protocol Engineering at ConsenSys, Madeline Murray, noted that the “ConsenSys Rollups enables vastly more scalability in addition to strong privacy protections to both enhance solutions for existing use-cases and enable new use-cases. This innovative solution will help accelerate the building of the future of finance.”
ConsenSys Rollups offer multiple benefits
ConsenSys further points to the use cases that this rollups solution will have. The firm states that the solution could aid in issuing central bank digital currencies (CBDCs) by providing both scalability and privacy in the use of CBDCs by retailers, commercial banks and central banks.
Moreover, the ConsenSys Rollups can also be adopted by decentralized exchanges (DEXs) to boost the speed of transaction settlement and bring scalability. Decentralized applications (dApps) that need high throughput and register many user interactions will also benefit from a solution that has no congestion and offers low fees.
With the boom of Web 3 and decentralized social media spaces, the ConsenSys Rollups are poised to be an ideal solution for most networks operating in these spaces. Moreover, it will eliminate entry barriers for DeFi and NFT projects because it will offer user confidentiality through partial anonymity.
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