Galaxy Research has cast a shadow over the future of Bitcoin layer-2 scaling solutions, particularly rollups. While these networks have gained popularity as a means to enhance Bitcoin’s speed, affordability, and decentralization, the research suggests that they may face significant sustainability challenges.
The core issue, according to Galaxy analyst Gabe Parker, lies in the cost of posting data to the Bitcoin base layer. This is a fundamental requirement for rollups to operate. In a scenario where transaction fees are low – say, 10 satoshis per vByte – rollups could incur monthly expenses of $460,000 to maintain Bitcoin’s security. This figure surges to a staggering $2.3 million per month in higher fee environments of 50 satoshis per vByte.
These exorbitant costs raise serious questions about the long-term viability of Bitcoin rollups. If these expenses continue to escalate, it could stifle innovation and hinder the widespread adoption of layer-2 solutions. While the report has sparked concerns, some experts believe that advancements in data compression and scalability could mitigate these issues over time. However, the sustainability of Bitcoin rollups remains a critical challenge that requires innovative solutions and careful consideration.
