Layer 2s

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

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 […]