A Comprehensive Guide to Best Ethereum Layer 2 Solutions

by Alicia Adley Blockchain Council

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 (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 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 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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About Alicia Adley Innovator   Blockchain Council

12 connections, 1 recommendations, 79 honor points.
Joined APSense since, September 3rd, 2019, From Brisbane, Australia.

Created on Oct 19th 2021 06:26. Viewed 520 times.


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