A Comprehensive Guide to Best Ethereum Layer 2 Solutions
Ethereum is now one of the most widely used blockchain networks, and this is
undeniable. Ethereum has 2855 decentralised apps in May 2020, with many more in
development. Furthermore, Ethereum's ability to enhance the DeFi space bodes
well for a significant rise in the number of applications and users on the
Ethereum network.
Due to the ever-increasing number of users on the ethereum blockchain network,
there are certain network limitations. This is where the finest Ethereum layer
2 solutions are offered.
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What is the requirement for solutions in Ethereum Layer 2?
Because of the growing number of apps and users, Ethereum is putting more
strain on the network. The Ethereum network has a limited capacity. As a
result, the network cost is rising significantly, as more users compete for the
inclusion of transactions to the Ethereum network.
Scaling solutions for Ethereum Layer 2 are therefore seen as critical tools
for addressing network performance issues. With different scalability methods,
several Ethereum Scaling solutions are studied, tested, and deployed. So, how can
you tell whether Ethereum is right for you?
You can achieve real scalability using scaling solutions?
The primary objectives of scalability for the Ethereum network are increased
transaction speed and transaction performance. At the same time, scaling solutions
should not compromise the Ethereum network's security or decentralisation.
Exorbitant gas costs and slower layer 1 blockchain transactions are other
concerns for Ethereum. To address scalability, exorbitant transaction costs,
and transaction settlement delays, Ethereum already has two distinct solutions
in the shape of sharding and layer 2.
What are the solutions of Ethereum Layer 2?
Despite Ethereum's efforts to make sharding a realistic ETH 2.0 scalability
solution, it has yet to be implemented. As a result, the obvious option in this
case would automatically lead to the most popular Ethereum layer 2 solutions.
Now, before we get into examples of solutions from Layers 2 and how they
function, let us attempt to understand solutions from Ethereum Layer 2 and how
they work.
In essence, Layer 2 solutions get a lot of their meaning from their
nomenclature. The network at the top, or layer 1, of Ethereum's main network is
Layer 2. The Ethereum layer 2 solutions, in the form of smart contracts, stay
on the Ethereum network. Layer 2 solutions do not need any changes to the base
level protocol for interacting with the main network. Scaling solutions for
Ethereum Layer 2 may help with off-chain computation and payment scalability,
among other things.
Polygon
Polygon (previously Matic) is a new Ethereum-based blockchain network
construction and connectivity tool. It includes all of the necessary tools and
components for developers to build the best Ethereum instances possible.
Cartesi
Cartesi would also be a good illustration of some of the most popular
Ethereum scaling solutions. Cartesi, however, solves both the scalability and
the high transaction fees, rather than simply the problem. The Layer 2 solution
from Cartesi also aids in the resolution of compatibility issues with
conventional software stacks and technologies.
Arbitrum
Arbitrum is an essential addition to the popular Ethereum Layer 2 scaling
alternatives for all the right reasons. Arbitrum's off-chain labs have
developed technologies that make it simple for Solidity developers to
cross-compile their smart contracts with Ethereum. Arbitrum's primary
components are validators, compilers, and EthBridge.
Wrapping up
The best Ethereum layer 2 solutions have emerged as answers to the Ethereum
network's scalability and high transaction fees. Scalability is a potential
criteria for ensuring a blockchain network's widespread adoption. Reduced
transaction fees may also encourage more people to use the Ethereum network. By
allowing off-chain calculators for greater loads on the Ethereum network, Layer
2 solutions offer the best responsiveness.
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