1inch Network has announced the integration of native rollups, which is a significant step in Ethereum's Layer 2 development.
Protocol Efficiency Improvement
According to official sources, 1inch Network, co-founded by Sergej Kunz and Anton Bukov, announced the integration of native rollups—a pivotal step for Ethereum's Layer 2. This initiative aims to enhance protocol efficiency, aligning with Ethereum's core scaling objectives.
Market Expectations After Integration
The announcement has strengthened the positions of 1INCH and ETH in the market, raising expectations for enhanced trading efficiency and lower transaction costs. Native rollups are expected to attract increased liquidity, fostering a robust DeFi ecosystem. Potential technological gains include enhanced scalability and faster transactions.
Ethereum's Unified Protocol Strategy
Similar scaling efforts such as zk-Rollups and Optimistic Rollups initially fragmented liquidity. Over time, they achieved consolidation and cost reductions. Native rollups aim to provide greater security and flexibility. Justin Drake from the Ethereum Foundation noted that native rollups resemble 'programmable shards', offering scalability akin to Layer 1 functionality.
The integration of native rollups by 1inch Network with Ethereum underscores a commitment to improving the protocol and its efficiency, as well as the importance of these changes for the future of DeFi.
