Ethereum, the main blockchain for Web3 development, has seen rapid growth as the number of Web3 participants increases. This surge was due to Ethereum’s scalability issues, which caused processing speeds to decrease and gas prices to rise. To solve these problems, Ethereum Layer 2 (L2) solutions have emerged. In this guide, we explore the complexities of Layer 2 networks and outline some key L2 projects!
Ethereum Layer-2 (L2) solutions refer to a set of scaling technologies designed to solve the scalability problems of the Ethereum blockchain. As Ethereum has become a leading platform for decentralized applications (dapps), decentralized finance (DeFi), and various Web3 projects, increased network activity has led to higher transaction fees and slower processing times.
The L2 solution essentially operates as an independent blockchain running “side by side” the main chain, complementing the Ethereum network. These solutions aim to improve scalability by processing transactions on the main Ethereum chain and interacting with the mainnet only when necessary. This alleviates congestion on the Ethereum mainnet, increasing transaction speeds and significantly lowering fees.
One of the key features of ETH layer-2 solutions is their ability to maintain the security guarantees of the original Ethereum chain while providing improved performance. These solutions offer higher throughput and lower costs, making it more efficient and cost-effective for users and developers to participate in the Ethereum network.
In summary, Ethereum layer-2 solutions play a critical role in expanding the scalability and accessibility of the Ethereum blockchain, providing a more efficient and affordable experience for users and developers involved in the rapidly growing Web3 ecosystem.
Examples of Ethereum Layer-2 solutions
- Polygon zkEVM
- optimism
- decision
- Base
These are some of the best layer 2 blockchains used by developers today. If you want to learn more, check out the content on Moralis.io (for developers) or Moralis Money (for traders) for detailed information on various L1 and L2 projects!
Ethereum, the cornerstone of Web3 development, is working to solve scalability issues such as slow processing speeds and rising gas prices. In response, Ethereum Layer 2 (L2) solutions have emerged as a scaling technology. Operating independently of the main Ethereum chain, these solutions alleviate congestion, delivering faster transactions and lower fees while maintaining security features. Examples of popular L2 solutions include Polygon zkEVM, Optimism, Arbitrum, and Base. For comprehensive information, developers can explore Moralis.io, while traders can find insights on Moralis Money, which covers a variety of L1 and L2 projects.
If you liked this article, why not check out the articles on the previously mentioned site? For example, at Moralis.io you can read about Web3 games, learn more about the ETH layer-2 platform, learn how to use the Starknet faucet and list all coins from an ETH address. Additionally, on Moralis Money’s blog you can read about different platforms such as the SKL cryptocurrency project and the GRT cryptocurrency, read about cryptocurrency liquidation and how to avoid it to improve your trading skills!