The Ethereum network is set to introduce a new rule aimed at significantly reducing deposit times from Layer 1 to Layer 2 networks and exchanges.
Julian Ma, a Research Scientist at the Ethereum Foundation, outlined the Fast Confirmation Rule (FCR) in a detailed post, calling it the “new industry standard” for Layer 2 networks and exchanges.
What Is Ethereum Fast Confirmation Rule?
Ma noted that transferring assets from Ethereum to Layer 2 networks and centralized exchanges has long been a slow process. The new Fast Confirmation Rule (FCR) aims to fix this by slashing deposit times down to roughly 13 seconds. This marks a decrease of around 80-98% for most L2 networks and exchanges.
“A fast-confirmed block is not a finalized block. If the assumptions of finality hold, a finalized block cannot be reorged. Likewise, if the assumptions of the fast confirmation rule hold, a fast-confirmed block cannot be reorged. It’s a similar guarantee but with different assumptions,” the post read.
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The reduction in deposit confirmation time carries specific implications for different participants. Shorter deposit times would allow exchanges to function as more efficient off-ramps, ultimately delivering a smoother experience for their users.
Meanwhile, L2 networks stand to benefit from less capital tied up during the bridging process, which could lower overall costs. For the broader Ethereum ecosystem, FCR brings greater efficiency, extremely low reorganization risk, and an improved blob fee market.
Bridges and solvers gain faster asset movement, lower costs for users, and better risk management. Lastly, RPC providers gain the ability to offer clients faster confirmations.
Notably, FCR requires no hard fork. This removes a technical barrier to adoption. Ma said that consensus layer client teams are implementing it.
Once a client implements the feature, nodes automatically run the rule. The rollout is expected within the coming months.
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