Unlocking Financial Freedom: How Layer 2 Solutions Like the Lightning Network Can Transform Microsavings
Did you know cryptocurrencies opened up new possibilities for transactions, savings, and investments? The real problem with blockchain is its limitations, such as slow transaction speeds and high fees. But after the arrival of Lightning Network, or Layer 2, users can fastly execute transactions. This will open up new ways to perform online transactions or do some microsaving. Are you seeking another method to save money for future use? If the answer is yes, then this tutorial is for you.
Layer 2 Solutions
Technically, Layer 2 solutions are built on top of existing blockchain networks. For example, you can perform Bitcoin transactions with the help of another chain. You can distinguish both blockchains as layer 1 or layer 2. Layer 1 is like the Bitcoin blockchain, and Layer 2 is any other chain that helps to process transactions quickly. The main objective of layer 2 is to process transactions off-chain, reduce congestion, and maintain security.
Key Benefits
- Layer 2 solutions can handle thousands of transactions per second (TPS).
- Layer 2 solutions make microtransactions economically viable.
- Off-chain processing allows for…
