Breaking Barriers: How Layer 2 Solutions are Making Enterprise Blockchain More Accessible

As a person who has worked in the field of enterprise software for years and is an enthusiast of new technologies, I have spent some time researching the use cases of blockchain technology in business. One area that I believe has the most significant potential for adoption is the use of blockchain technology to improve the efficiency and transparency of business processes.

One of the biggest challenges facing enterprise blockchain is privacy. Businesses must be able to share data with partners and customers and protect sensitive information such as trade secrets and personal information. This is where layer two (L2) solutions come in, which are designed to provide privacy and scalability to the blockchain. These solutions use the security mechanisms of the main blockchain, but the operations themselves are transferred to a higher level, thus improving scaling and reducing transaction costs on the first layer.
More and more often, in the context of building L2 solutions, the use of Zero Knowledge Proof (ZKP) algorithms is mentioned. These algorithms make it possible to share information without disclosing the underlying data. This technology can be used to protect sensitive information, such as supply chain data or financial transactions.

Another critical aspect of the enterprise blockchain is interoperability, which is the ability of different blockchain networks to communicate and share data with each other. This is important for companies that operate across multiple industries or jurisdictions as they need to be able to share data with partners and customers in different locations. One way to achieve interoperability is through the use of cross-chain communication protocols, which enable communication between various blockchain networks.

Recently, enterprise blockchain class solutions were based solely on closed systems with full access control. However, this is changing with the development of Ethereum and the emergence of systems forming a second layer in relation to it. In the near future, we can expect a flood of new Ethereum scaling solutions based on ZKP algorithms. Their main task is to scale and ensure the security of a large number of transactions that do not have to be performed directly on the first layer, i.e., the Ethereum network, but are only guaranteed by its security mechanisms.
In the context of the enterprise blockchain, these solutions could prove groundbreaking. The use of dedicated L2 systems operating based on ZKP algorithms addresses most of the challenges enterprise blockchain faces, including transaction privacy, speed of transactions and scalability, low cost of a single transaction, and cooperation between different systems.

In addition, the undoubted advantage of this approach is that we do not close ourselves to a private blockchain deprived of access to the outside world, but we operate on a public network. We can use the internet as an analogy here. It is publicly available, yet billions of private transactions take place every day. Companies securely communicate with each other, even though access to the internet is unlimited for anyone.

In the case of layer two systems, it can be assumed that those intended for business, despite their public nature, will have an additional authorization layer. Its purpose will be to assure participants of such a blockchain that they transact with reliable partners and not with a potential fraudster. This can be achieved by using x.509 certificates, which can be used to secure access to the corporate blockchain, ensuring that only authorized parties can access and interact with the network. X.509 certificates can provide additional security features such as digital signatures and encryption for enterprise blockchain transactions.

Finally, it should be noted that enterprise blockchain is still a relatively new topic, and there are many challenges to overcome before it can be widely adopted. This includes issues such as security, scalability, and compliance. However, despite these challenges, enterprise blockchain has the potential to revolutionize the way that enterprises operate today.