The bullish phase of 2017 marked crypto’s first official mainstream bull market. Stories of seemingly instant wealth thanks to something called cryptocurrencies permeated office buildings, dinner tables, and friendly gatherings. Bitcoin and Ethereum’s massive network and value ascent inspired teams of new blockchain platforms to outperform their seniors in both tech, marketing, network effect, and hype. This hype trend sparked a wave of bullish sentiment in all aspects of crypto, especially further inspiring the ICO craze. The ICO craze primarily put Etheruem in the spotlight as it was the main functioning blockchain platform at the time. Adding to this, nearly all existing crypto project altcoins were also planted into the Ethereum Network, making it one of the most commonly used blockchains. At this moment, Ethereum’s lack of scalability truly came into question due to its longer transaction times and higher gas prices.
While the ICO craze was perhaps the first mainstream warning bell of Ethereum’s limitation, it wasn’t until the onset of the first viral NFT collection called “CryptoKitties” that would really begin to highlight Ethereum’s scalability issue (See this 4-year-old Reddit post for reference).
Fast-forward to the current bull cycle, Ethereum’s scalability issues have begun to strangle the network and its users with high gas costs due to the colossal rise of DeFi and NFTs. Because Ethereum 2.0 has been crawling at a sluggish pace against the rapidly moving crypto market, alternative measures had to be taken to alleviate this issue. Welcome to the era of Layer 2 solutions!
What is a Layer 2 (L2) solution?
In simple terms, a layer 2 solution is a blockchain protocol that's built on top of an existing layer 1 protocol. Transactions on a layer 2 solution are lightning-fast and are extremely cheap, thus making them very attractive. Essentially, instead of having to only rely on a Layer 1 protocol like Ethereum, users can use a layer 2 protocol that’s built on top of Ethereum to engage with the blockchain much quicker and cheaper than sticking purely to the layer 1 protocol.
Layer 2 Pain Points
While layer 2 solutions seem to be the most effective answer to the scalability of layer 1 blockchains, they can be difficult to use, especially for new users. To use a layer 2 protocol, users must bridge their current assets on Ethereum to their L2 of choice, like Polygon. The bridging step alone requires the high Ethereum gas fee and a certain amount of time for all assets to be bridged. When users are ready to convert back into Ethereum, they must bridge their assets back to Ethereum. For those wanting to interact using two layer 2 solutions, they must repeat the entire process multiple times for multiple different assets, causing them to lose hundreds or even thousands in gas fees over time.
Luckily Wanchain is set to unleash Layer 2’s full potential…
What is Wanchain?
Wanchain is a well-established, decentralized blockchain interoperability solution harnessing the latest in blockchain decentralization, interconnectivity, and scalability for commercial, public, personal, and state use. Wanchain works to drive blockchain adoption through interoperability, security, and transparency by having a next-generation blockchain as its foundation equipped with fully decentralized bridges that interconnect many of the different existing and future blockchain networks.
Starting as a fork of Etheruem, Wanchain has grown to be one of the most advanced and scalable blockchains in the space, all with its leading cross-chain functionality which breathes new life into DeFi and countless other applications.
Wanchain- The Genesis of the Worlds First L2 to L2 Cross-chain Bridge
Earlier this month, the Wanchain team revealed the platform’s newest cross-chain spectacle; L2L2 bridges!
Wanchain’s L2L2 bridges mark one of the first-ever in the industry. After seeing Wanchain’s prowess and reputation as a multi-cross-chain platform, it makes perfect sense that the next wave of innovation meets second-layer blockchains. L2L2 cross-chain capabilities can evolve how we interact with cryptocurrencies.
There are countless benefits behind Wanchain’s L2L2 bridges, some of the most impactful include:
- Simplifying L2 to L2 transactions and trades- Users who wish to engage with two L2 protocols (e.g Polygon, Arbitrum) normally have to send assets from the L1 to the first L2, and then resend the L2 assets back to the L1 and repeat the process to converting the assets to the second layer 2 destination. This is not only expensive but extremely time-consuming. The process only gets more frustrating the more congested the L1 is at the time of transacting. Those who are newer to the crypto scene will surely find this processes terrifying. Luckily, Wanchain’s L2 to L2 bridge removes this inconvenience by allowing users to transact straight between only the L2 protocols.
- Lower costs- Porting assets from an L1 such as Etheruem to an L2 requires users to pay a hefty gas fee on the Ethereum network. When a user wishes to switch these assets to a new L2 they must port the funds back to Ethereum and pay the network fee once again to convert the assets to the new L2. At current gas rates, this process can easily rack up hundreds to even thousands of dollars for users. Alternatively, the use of Wanchain’s L2L2 bridge can likewise save users hundreds to thousands of dollars in network fees.
- Maximum efficiency- Because Wanchain’s L2L2 direct bridges are not limited by the scalability defaults of layer 1 blockchains, users are guaranteed the fastest and most seamless L2L2 transfers possible.
- Decentralized- Powering Wanchain’s L2L2 bridges are Wanchain’s state-of-the-art Storeman node system to ensure fully decentralized and permissionless bridges. Wanchain’s network of decentralized Storeman Nodes manages the exchanged assets between blockchains in a way where funds are not obtained by a centralized entity. This system enables users to transact and engage throughout different blockchains and DeFi applications back and forth across various blockchain platforms.⁴ Unlike other emerging cross-chain protocols, the Storeman Node protocol’s rigorous multiparty computing effectively eliminates the risk of single-point failures when transferring cross-chain.
- Easing network congestion for all crypto users- Believe it or not, the usage of Wanchain’s L2L2 bridge protocols benefits all crypto users, not just users of the L2L2 bridge. As Wanchain’s L2L2 bridge popularity grows, less stress is put on layer 1 chains for transferring assets between different layer 2 solutions. This directly impacts layer one protocols as a whole along with users. Increased usage of L2 protocols along with Wanchain’s new L2L2 bridge makes transactions on layer one chains slightly more cheaper and efficient, thus improving the crypto experience for all users!
Conclusion
As layer 2 solutions continue to rise in popularity due to the scalability limitations of layer 1 protocols, the need for advanced layer two support must be present to meet the growing wave of demand. As a leader in innovation and advancements in the crypto space, Wanchain’s exclusive cross-chain platform puts it a step ahead in this new era of layer two technologies and continuing its legacy of creating the solutions for tomorrow’s challenges.
