Ethereum's gas limit hike to 60M boosts block throughput to ~300-400 TPS (up from ~200), enabling more efficient dApp activity, DeFi trades, and RWA tokenizations without layer-2 reliance. This contrasts sharply with Bitcoin's base layer, capped at ~7 TPS via 1MB blocks—prioritizing security over speed, leading to high fees ($1-10+ during peaks) and mempool backlogs that throttle everyday txns.
Bitcoin handles ~400K daily txns overall (mostly settlements), while ETH now processes 1.2M+ daily, surging post-upgrade. BTC's scaling relies on Lightning Network for micro-txns (millions off-chain), but core network remains slow for complex ops. Result: ETH gains DeFi edge (e.g., lower costs for swaps like on LeoDex), potentially fueling $3K+ price momentum; BTC stays "digital gold" with steady but limited activity.
Does the move of the payment layer from the base to Lightning affect security with Bitcoin?
Moving Bitcoin's payment layer to Lightning Network doesn't undermine base layer security—in fact, it enhances overall network resilience by offloading small, frequent transactions from the congested main chain.
Lightning operates as a second-layer protocol using bidirectional payment channels secured by on-chain smart contracts (via HTLCs). Users lock BTC in multisig channels on the base layer, then route off-chain payments instantly and cheaply. Security relies on Bitcoin's core features: time-locked scripts (e.g., CheckSequenceVerify) penalize fraud via "justice transactions," forcing honest behavior or loss of funds. If disputes arise, channels close on-chain, settling via Bitcoin's proof-of-work consensus.
Key contrasts to concerns: No central points of failure; channels inherit base layer security. However, users must manage private keys carefully—channel breaches could lead to force-closures. As of 2025, Lightning handles millions in daily volume (e.g., via nodes like those from Jack Dorsey's integrations), reducing base layer spam and preserving its focus on high-value settlements. For deeper dives, see Lightning's original whitepaper or recent analyses on Wikipedia.