Ethereum's Layer 2
Ethereum's Layer 2 solutions are scaling mechanisms designed to alleviate the network's congestion and high transaction fees by processing transactions off-chain or in a more efficient manner while still maintaining the security guarantees of the Ethereum mainnet.
Layer 2 solutions operate "above" the main Ethereum blockchain, leveraging its security while offloading some of the computational load to secondary layers. These solutions enable faster transaction speeds and lower costs compared to on-chain transactions, making Ethereum more scalable and practical for a wider range of use cases.
Common Layer 2 solutions include Optimistic Rollups, zkRollups, and Plasma. Optimistic Rollups rely on optimistic execution and periodic verification on the Ethereum mainnet, while zkRollups use zero-knowledge proofs to compress transaction data before anchoring it on the mainnet. Plasma is a framework for building scalable decentralized applications by offloading computation to child chains while periodically committing to the Ethereum mainnet for security.
By implementing Layer 2 solutions, Ethereum aims to improve its throughput capacity, making it more suitable for decentralized finance (DeFi) applications, non-fungible tokens (NFTs), gaming, and other high-demand use cases, ultimately fostering broader adoption and innovation within the Ethereum ecosystem.
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~ Nesaty
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