CUDOS: Rise of the layer 2 networks
Layer 2 networks are a secondary framework or protocol that is built on top of an existing blockchain system. Usually, the main purpose of these protocols is to solve issues surrounding transaction speed and scaling that are being faced by the major cryptocurrency networks.
In the past couple of years, the technologies around layer 2 blockchain solutions have developed dramatically. We’ve begun to see many DeFi projects being built on rollups (off-chain aggregations of transactions inside an Ethereum smart contract).
On the Bitcoin network, we are beginning to see developers building DeFi applications via the Lightning network and sidechains such as RSK. 2020 was also the year that interchain solutions such as Polkadot, NEAR and Cosmos went live, effectively as layer 2 solutions for Bitcoin and Ethereum connected via “blockchain bridges.” It is clear that the concept of “Layer 2 blockchain technology” is starting to become more popular, this is probably because they are filling a gap that needs to be filled before mainstream adoption can become a reality.
The early years of this industry have seen countless products that attempt to use blockchain as a technical solution to their problem. Some of these solutions have been successful, while others have run up against some of blockchain’s native limitations.
So how does CUDOS fit into all of this? CUDOS is a decentralised compute network providing a trusted multi-chain layer 2 compute and a data oracle network. CUDOS provides blockchain developers with a bridge to the off-chain world of data, API’s and compututational power. Which comes with the following advantages:
- Lowering the cost of compute on blockchains
- Increasing the scalability of blockchains
- Connecting blockchains to external API’s and data feeds
- Lowering the cost of DeFi
- Providing turing complete solutions to non turing complete networks
With the rise of layer 2 blockchain solutions, it would seem that the crypto landscape is in demand of what we have to offer here at CUDOS. Our project goes far beyond just addressing issues surrounding scalability and speed, as well as tackling these problems we also fill other gaps that will be essential in supporting the rise of Web 3.0 and the mainstream adoption of blockchain technology.
To find out more about what we’re currently working on please visit our website or click on one of the social media links below.