Top 10 ETH Layer 2 Scaling Solutions
Layer 2 solutions are used to secure, protect and transfer data between Ethereum nodes. In addition, they provide scaling solutions that increase the throughput capacity of a blockchain. In this article, we discuss top 10 ETH Layer 2 scaling solutions
1. Polygon
THE WHAT?
- A decentralized Ethereum scaling platform called Polygon enables developers to create user-friendly, scalable decentralized applications (dApps) with cheap transaction fees without ever compromising security
- Polygon combines the best of Ethereum and sovereign blockchains into a full-fledged multi-chain system
- Over 19k+ dApps have used Polygon to scale their performance
- Polygon is committed to fostering the growth of Web3 applications by providing the infrastructure needed for Web3
2. Optimism
THE WHAT?
- Optimism is a low-cost and lightning-fast Ethereum L2 blockchain
- There is more to optimism than simply a blockchain
- It is an experiment on how to sustainably fund an ecosystem using money from the protocol
- Retroactive Public Goods Funding is straightforward: if you construct something for the common benefit, you get rewarded
3. Arbitrum
THE WHAT?
- Arbitrum is built by Off-chain Labs, a world-class team of researchers, engineers, and Ethereum enthusiasts
- Enable parties to establish smart contracts by utilizing code to indicate how a virtual machine (VM) will work in order to carry out the functionality of the contract
- Ultra-low transaction costs with high security
- High transaction volumes that seek to drive costs even lower
5. Uniswap
THE WHAT?
- The Uniswap Protocol is an open-source protocol for providing liquidity and trading ERC20 tokens on Ethereum
- It eliminates trusted intermediaries and unnecessary forms of rent extraction, allowing for safe, accessible, and efficient exchange activity
- The protocol is non-upgradable and designed to be censorship resistant
- The Uniswap Protocol and the Uniswap Interface were developed by Uniswap Labs
6. Loopring
THE WHAT?
- Loopring builds protocols, infrastructure, and user-facing products for the future of finance
- Users of decentralized finance (DeFi) need not choose between security and performance
- Loopring has succeeded in proving that non-custodial technology can replicate custodial alternatives in speed, cost, and experience
- The protocol aims to allow anyone to build non-custodial, decentralized exchanges on top of it by leveraging zero-knowledge proofs (ZKPs), a popular means of enhancing privacy in cryptocurrency
7. OMG Network
THE WHAT?
- Enya is building Boba Network as a core contributor to the OMG Foundation
- A scaling solution that reduces gas fees improves transaction throughput and extends the capabilities of smart contracts
- The OMG Network is an Ethereum-based payment system that supports a variety of digital assets
- Without compromising the security advantages of the blockchain, it enables users to access, manage, and deal with digital assets built on the Ethereum platform more effectively
8. ZKSpace
THE WHAT?
- In order to hold the tokens customers deposit, ZKSpace will implement a number of smart contracts on the Ethereum blockchain, which will also record and validate Layer-2 status updates and relevant proof
- The native token ZKS is used to pay for minting NFTs on the L2 marketplace as well as to avoid costs on the DeFi token swap L2 Wallet
- The key hub connecting on-chain and off-chain is those smart contracts
9. Skale
THE WHAT?
- An open-source Web3 blockchain network is Skale
- The Skale DAO oversees the Skale Network, which is run in an entirely transparent and decentralized manner
- The Skale Network is supported, operated, and governed by more than 50 different businesses, organizations, and DAOs
- A decentralized multisig approval held by several distinct entities and contributors is required for all fundamental smart contract updates
10. Gnosis Chain
THE WHAT?
- Gnosis Chain (known as xDAI) is a blockchain compatible with EVM (Ethereum) designed to enable faster and cheaper transactions, providing greater stability, scalability and availability to iCommunity Labs’ iBS blockchain services platform
- While it is centred around Ethereum, it uses a different method of consensus called proof of stake (PoS)
- This method involves token holders giving tokens to the chain as collateral in exchange for the right to validate transactions
DISCLOSURE:
None of these articles constitute financial advice. Articles are highly summarised to make it easy for the reader and save your time, so please DYOR further before putting your hard-earned money into any product mentioned.
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