OK. Get a load of this. I just found out about a thing that could scale Ethereum by 100x over the next few years. It’s name is Arbitrum. Arbitrum is here to shake things up and get you boogying. This lesser-known digital asset has been making waves in the crypto space thanks to its unique approach […]
Layer 2 Coins
The most well known layer 2 coins are Polygon Matic and the Bitcoin Lightning network. You may also have heard of Arbitrum. Polygon and Arbitrum sit on top of Ethereum to help it process transactions faster. Similarly, the bitcoin lightning network batches smaller transactions together at lightning speed and then adds these to the Bitcoin network.
You can read about the top layer 2 solutions in the articles below
What is layer 2 crypto?
Layer 2 coins will help a blockchain scale faster. Most layer 2 solutions refer to Ethereum. So if you consider Ethereum to be a base layer, a layer 1, then anything that aids Ethereum to process transactions faster is a layer 2.
You can think of a layer 2 using its own blockchain and validators etc. processing transactions and bundling them together. The security on this blockchain is not as tight or as decentralized as that of Ethereum but the processing is much faster. Then, once a certain number of transactions get batched together, they get passed on to the Ethereum network where security is considered superior.
There are two ways that batching is done.
The first is optimistic rollups which assumes all transaction are valid and only checks for fraud when challenged.
The second is zero knowledge rollups, ZK-rollups, which is a well-known method to check that transactions are trustworthy even though you might not know the details of those transactions.
Take a look at some of the main layer 2 solutions available below
Google Trends shows that searches for “Buy Pancat Cryptocurrency” are rising these days. That’s weird to me since the project seems to have been abandoned. In this post, I’ll explore this new meme coin called “Pancat” and explain why you should avoid buying it. For those who really want to, I will show you step […]
What is Polygon crypto? If you don’t know much about Ethereum I would suggest you read this article explaining Ethereum first before trying to understand what polygon crypto is Polygon is a blockchain that offers fast transactions that are secured by the Ethereum Network. As such it offers the best of both worlds: high throughput […]