Uniswap Labs announces Unichain, a layer 2 blockchain to scale decentralized finance

Uniswap Labsthe developer behind the most popular decentralized cryptocurrency exchange, announced today the launch of its own application layer 2 blockchain network, Unichain.

The company said the new blockchain network is oriented to help create a scaling solution for Ethereum, a popular blockchain for decentralized finance, or DeFi, to help reduce transaction times and fees. It will join a myriad of L2 solutions who have has been built to increase speed and accessibility on Ethereum, which is often clogged with transactions.

“Unichain will deliver the speed and savings already enabled by L2s, but with greater access to liquidity across chains and greater decentralization,” said CEO Hayden Adams.

One layer 2 blockchain is a separate chain that runs alongside another and then submits transactions to the main blockchain. Ethereum began its evolution with roll-ups, a technology that allows transactions to be “bundled” on a separate chain and SO submitted in one go. Unichain said it is accelerating Ethereum’s scaling roadmap by moving clever contract execution on its network, which will help reduce transaction costs by 95% compared to Ethereum in the short term.

Decentralized finance, the focus of Uniswap Labs, uses peer-to-peer transactions executed using blockchain technology to allow people to participate in financial services without the need for intermediaries like banks or brokerage houses. This includes buying, selling and trading of tokens and even more complex services such as investing, lending, flash loans, margin trading and prediction markets.

Uniswap said bringing the next generation of marketplaces live not only requires transactions to be cheaper but executed on time. The company said Unichain will Help solve this problem by launching with 1 second block times. Additionally, the platform will soon introduce 250 millisecond “sub-blocks” capable of creating a user experience of instant transaction times.

This improvement came in collaboration with the block builder Flashbots Ltd.which uses a reliable execution environment improve speed, transparency and avoid transaction failures. The L2 is also part of the Optimism Superchain, an Ethereum scaling solution.and Uniswap partnered with OP Labs to implement native interoperability to enable the secure movement of assets and data across chains.

Unichain is currently in the testnet phase, meaning the company is offering developers the ability to create applications that will run on the network before full launch. Developers can find a full suite of resources on the company’s website with a builder’s toolbox.

Image: Pixabay