Ethereum Layer 2 NFT Marketplaces Aiming to Reduce Gas Fees

January 08, 2022, 10:45 AM AEST - 1 week ago

With non-fungible tokens (NFTs) still steadily on the rise, gas prices and network congestion have continued to be an issue, pushing developers to build on Layer 2 solutions.

The Problem with Layer 1 Solutions

One of the common problems with NFT marketplaces built on Layer 1 (L1) solutions is that they have high gas fees and during periods of high congestion, transactions can also take longer to process. When more complex transactions are processed from DeFi, NFT marketplaces, and other applications, TPS (transactions per second) rates decline rapidly and as a result gas costs go up.

Because of these challenges, Layer 2 (L2) solutions, or ‘side-chains’, become a possible answer to the problem.

The Argent Layer 2 Solution

Argent X is an L2 built on StarkNet which aims to reduce gas fees by using zk-rollup (zero-knowledge-rollup) technology. This mechanism brings gas fees down to the minimum because it batches transactions, which are then verified off-chain using an on-chain verifier. This ease means a batch can be sent to Layer 1 and verified in a smart contract for frictionless transfers between L1 and L2.

Since its inception, StarkNet has settled over 50 million transactions and US$250 billion since the summer of 2020. By allowing developers to build on their platform they could save potential customers a pretty penny in gas fees.

Argent is crypto’s iPhone moment – highly secure with a user experience that rivals the best traditional finance apps.

Wouter Kampmann , head of engineering, MakerDAO

According to StarkNet’s official blog, “StarkNet allows any dApp to achieve unlimited scale for its computation, without compromising Ethereum’s composability and security, thanks to its reliance on the safest and most scalable cryptographic proof system — ZK-STARK.”

After its Alpha launch on December 29, StarkNet has encouraged developers to start building, though also stating that it has yet to be audited and that users should be aware it is in the Alpha stage.

Buy Crypto on Layer 2 for Only a $1 Fee

The Argent platform that uses StarkNet can give users “up to 100X cheaper fees than Ethereum thanks to zkSync’s [a rollup technology] Layer 2 network. With near-instant speed.”

The platform can also use a card, bank transfer or Apple Pay, with very low fees.

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