Layer 2 Ethereum Blockchains - Arbitrum, Optimism, Canto, dydx
3🔥 Buy ETH on MEXC with up to $1,000 Bonus : https://www.mexc.com/register?inviteCode=mexc-pccrypto
🔥 Buy ETH on ByBit with up to $30,000 Bonus: https://partner.bybit.com/b/pccrypto
(my referral links)
Layer 2 (L2) blockchains are a scaling solution built on top of the Ethereum blockchain to address its scalability and high transaction fees. They aim to improve the efficiency and performance of the Ethereum network by processing transactions and smart contracts off-chain or in a more efficient manner, while still maintaining a strong connection to the Ethereum mainnet for security.
✅ Vitalik Buterin on different types of layer 2s: https://vitalik.eth.limo/general/2023/10/31/l2types.html
✅ L2Beat: https://l2beat.com/scaling/summary
✅ Summary of Layer 2s: https://pccrypto.co/ethereum-layer-2-list/
Key characteristics of Layer 2 blockchains:
Scalability: Layer 2 solutions significantly increase the throughput of transactions and smart contracts compared to the Ethereum mainnet, alleviating congestion and reducing transaction fees.
Security: Layer 2 solutions rely on Ethereum's security for finality, ensuring that any disputes or fraudulent activity can be resolved on the Ethereum mainnet.
Interoperability: They are designed to seamlessly integrate with Ethereum, allowing assets and data to move between the Layer 2 and the Ethereum mainnet.
Examples of Layer 2 solutions for Ethereum include:
Rollups: Rollups are Layer 2 solutions that bundle multiple transactions off-chain and then submit a single proof of those transactions to the Ethereum mainnet. There are two main types of rollups: Optimistic Rollups (e.g., Optimism) and zk-Rollups (e.g., zkSync, Loopring). These solutions improve scalability and reduce fees by processing most transactions off-chain while maintaining security.
State Channels: State channels enable off-chain interactions between users. They are suitable for high-frequency, low-value transactions, such as microtransactions in games or instant payments. Examples include Raiden Network and Connext.
Plasma: Plasma is a framework for creating scalable sidechains or child chains that can be connected to Ethereum. It allows for faster and cheaper transactions while maintaining the security of the Ethereum mainnet. OmiseGO and Matic (now Polygon) have implemented Plasma-based solutions.
Sidechains: Some Layer 2 solutions are built as independent blockchains that are interoperable with Ethereum. For example, xDai Chain is a sidechain that provides fast and inexpensive transactions while remaining connected to Ethereum for asset bridging.
These Layer 2 solutions offer different trade-offs in terms of security, decentralization, and usability, catering to various use cases and needs within the Ethereum ecosystem. They are vital for improving Ethereum's scalability and usability as a global decentralized platform.
Nothing here is financial advice, purely educational content.
FOLLOW ME ON TWITTER
👉 https://twitter.com/prz_chojecki
WATCH ON MY CHANNEL
📺 7 Crypto Narratives: https://www.youtube.com/watch?v=s0YOCGijH14
📺 Pionex Trading Bot: https://www.youtube.com/watch?v=GnWQMDTaqbw
📺 Top Gaming Coins: https://www.youtube.com/watch?v=JWdadkOTx1Y
MY AFFILIATE LINKS
🔥Binance
https://accounts.binance.com/en/register?ref=KX4WY3HO
🔥OKX
https://www.okx.com/join/14145768
🔥Gate.io
https://www.gate.io/signup/11725856
🔥Kucoin
https://www.kucoin.com/r/af/rP6LVNQ
All links above are affiliate and my referrals. Thank you for your support!
#ethereum #layer2 #eth