A Comprehensive Guide to Best Ethereum Layer 2 Solutions

Ethereum is currently one of the most popular blockchain networks in use and this fact has no doubts. In May 2020 Ethereum had a total of 2855 decentralized applications, many more in development. In addition, Ethereum’s potential to improve DeFi space also shows promise for a large increase in the number of apps and users in the Ethereum network.

There are some network restrictions due to the steadily increasing number of users on the ethereum blockchain network. This is where the best solutions from Ethereum layer 2 are presented.

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What is the requirement for solutions in Ethereum Layer 2?

Ethereum is responsible for raising the stress on the network by the increasing number of applications and users. The Ethereum network’s capacity is small. Consequently, the network cost is growing considerably, with increasing numbers of users competing for the addition of transactions to the Ethereum network.

Scaling solutions for Ethereum Layer 2 are therefore considered essential tools to handle network performance challenges. Many Ethereum Scaling solutions are researched, tested, and implemented with various scalability methodologies. So, how can you know that with Ethereum

scaling solutions you can achieve actual scalability?

For the Ethereum network, the main goals of scalability are the increase in transaction speed and transaction performance. Scaling solutions should at the same time not affect Ethereum network security or decentralization. Ethereum also has worries about exorbitant gas prices and slower layer 1 blockchain transactions. Ethereum already has two different solutions in the form of sharding and layer 2 to solve scalability, excessive transaction charges, and transaction settlement delays.

What are the solutions of Ethereum Layer 2?

Even if Ethereum is working to provide sharding as a viable ETH 2.0 scalability option, it is not really deployed. Therefore, in this instance, the logical choice would naturally direct to the most popular solutions in Ethereum layer 2. Now let us try to grasp solutions from Ethereum Layer 2 and how they work before we go into examples of solutions from Layers 2.

Basically, Layer 2 solutions give a lot from their own name. Layer 2 is the network at the top or layer 1 of Ethereum’s primary network. In the form of smart contracts, the Ethereum layer 2 solutions remain on the Ethereum network. For interfacing with the principal network, the Layer 2 solutions require no modifications to the base level protocol. Scaling solutions for Ethereum Layer 2 might fulfill several tasks, such as off-chain computing and payment scalability.

Polygon

Polygon (formerly Matic) is an emerging platform for constructing and connecting Ethereum-based blockchain networks. It contains all the important tools and components that developers need to create optimal Ethereum instances.

Cartesi

Cartesi would also serve as a leading example of popular Ethereum scaling solutions. Interestingly, Cartesi addresses the scalability and high transaction charges rather than just the issue. Cartesi’s Layer 2 solution also assists in solving compatibility problems with traditional software stacks and technology.

Arbitrum

For all the right reasons, Arbitrum is another important addition to the popular Ethereum Layer 2 scaling options. Arbitrum off-chain laboratories have built technologies that enable Solidity developers to easily cross-compile their smart contracts in close interoperability with Ethereum. The validators, compilers and EthBridge are the main components of Arbitrum.

Wrapping up

As solutions to the scalability and high transaction costs in the Ethereum network, the finest Ethereum layer 2 solutions have evolved. Scalability is indeed a promising criterion to ensure that a blockchain network is broadly used. Lower transaction charges may additionally encourage more consumers to adopt the Ethereum network. Layer 2 solutions provide the optimum response by permitting off-chain calculators for higher loads on the Ethereum network.