Steemit Crypto Academy Contest / S13W5 - Layer 2 Blockchain
In the world of Blockchain technology, we hear several terminologies. Among these are these frequently mentioned; Layer 1 and Layer 2.
What do we mean by layer 2? The answer to this question will also explain Layer 1. With the help of the contest tips, I will give attention to the question.
What is layer 2 in a blockchain and how does it differ from layer 1?
From my own understanding, Layer 2 refers to an additional protocol which is built on the main Blockchain. That is to say that, the main Blockchain protocol is already running, and this new protocol or software is added to solve some dire needs which the main protocol does not solve.
For example, Bitcoin chain have a scalability problem, it does not have the ability to process so many thousands of transactions at shortest second like many other chains, so an additional protocol referred to layer 2 is added to the main Blockchain to provide solution to Bitcoin speed of transaction and Scalability issues which inhibits the currency from being adopted globally as a means of exchange.
Its introduction on the main chain creates a different processing network such that while the main Blockchain ( Layer 1) is concerned with security and stability of the chain, the Layer 2 is concerned with transaction processing speed and scalability. That is why it is refered to as off chain processing. Its operation does not affect how the layer one works.
Both layers works simultaneously to bring out the best in the Blockchain. It also does not cause any structural change on the Layer 1 which is the main Blockchain.
What are the major differences between the layer 1 and later 2?
| Layer 1 | Layer 2 |
|---|---|
| This is the base chain or the main Blockchain of the network | This is the additional program or protocol which runs on the Layer one to help solve specific needs. |
| It has limited scalability | It has faster scalability enhancing the layer in the process. |
| Transaction fees on layer 1 are always very high | transaction fees are cheap and cost less. |
| It does not help in general adoption as a payment system due to its slow transaction speed | leads to adoption as a payment system because of its speed. |
| It ensures security and stability of the chain | It does not have the level of security that layer 1 have, hence, it is open to fraud. |
Give real-world examples of Layer 2 solutions and explain how they work
Some examples of layer 2 solutions are
° Lightening network
° Plasmas
° Zero-Knowledge Rollups
° Optimistic Rollups
° Starkware
° Arbitrium
This is a layer 2 network that runs on the Bitcoin blockchain.
It picks it's transaction data from the main chain and processes it off chain, after which it transfers the processed information back to the main chain. It makes the running of smart contracts possible on the Bitcoin chain
It also brings about swift payments, scalability of transactions, reduced fees and interoperability of chains.
Majorly used on the Ethereum chain, which helps the main chain in data verification. It looks more like a smart contract, taking off some transactions from the main chain, thus freeing the main chain for higher scalability and speed.
The data in the main chain are collated together via a smart contract and moved off line where it will be processed and computed. The good thing about this is that it is very fast as a block is produced in 1 minute and transactions are processed at 2k/TPS. All the participants in it knows they possess the same data without revealing it in any way.
Since ZKS stores data offline, it creates space in the layer 1 chain, saves computing power, reduces transaction charges and makes it faster
It performs like the ZK Rollups, but requires the validators to facilitate the transaction speed by computing the merkle roots. So the aggregators are being relied on to validate the merkle roots before transaction is validated.
This particular layer 2 solutions have 3 products to its name. It has the capacity for DAPPS used on the main chain to have unlimited scalability, while still enjoying the security and other provisions of the Ethereum chain.
This layer 2 protocol is built to increase the scalability and speed of Ethereum based smart contracts. Developers are allowed to run contracts without compromising the Ethereum chain security.
How does layer 2 help reduce transaction fees on a blockchain and facilitate interoperability between different blockchains?
We all make use of storage spaces and download documents on our phones and laptops. The heavier the file being downloaded, the more data it will consume and the longer the time taken to download, the more the data consumed.
Likewise, layer 2 reduces transactions by taking off the bulk of the transactions and processing them off line at a faster time and rate, this in turn, creates more space on the main chain.
So transactions fees are reduced to the barest minimum and processed within the shortest amount of time
This also aids with Blockchain interoperability, since it will be done basically by these layer 2 protocols, making it fast and relieving the two Blockchains of the stress of confirming and reconfirming transactions.
The layer 2 serves as a connecting bridge between the two Blockchains, processing the data and handing it over to the blockchains involved. These layer 2 protocols are like advanced smart contracts, that acts as a communicator between the two chains.
What is the underlying layer used by the Steem blockchain, and how does this layer facilitate transactions and interactions on the platform?
The Steem Blockchain is built on Graphene. Graphene is so special because of its modularity. That makes it the toast of many blockchain software engineers. Its ability to communicate with different nodes at a time makes it special for the steem Blockchain.
The functions available is dependent on the terms of the contract which is determined by a particular blockchain. It can communicate with several nodes at the same time.
So with this beautiful characteristics, it is possible for steem Blockchain to scale more than 1000 transactions per second and can also perform 10000 transactions per second with slight improvement on the server capacity and other technical protocols.
Source
What would be the implications of integrating a layer 2 solution on the Steem blockchain in terms of scalability, costs and ease of use for users?
There is no doubt that integrating a layer 2 solutions on the steem Blockchain will bring about several benefits and advantages.
Scalability
Already, the layer 2 on which steem Blockchain runs is powerful; Graphene. It has the capacity for a layer 2 to be run on it.
So it will help to unburden the Blockchain, this will creat more space in the main chain which increases the scalability of the chain.
Reduced Costs
Since most processing will be done by integrated protocol, the cost of transaction will definitely be reduced the more. The load on the main chain have been taken off.
Easy to use
It will make the platform to be user friendly, easy to use and have improved user experience. The platform will become more appealing to newcomers and will be like become like a social network which it is. This will lead to adoption by so many persons and increased awareness of steem as a cryptocurrency.
Conclusion
Layer 2 solution does have a great impact on Blockchain technology. It really helps in solving some issues which the main chain cannot solve. Issue like interoperability, scalability, gas fee reduction, etc. It will ensure improved user experience on any chain it is deployed appropriately.
With it on the steem blockchain, we will go beyond the clouds.
I therefore call on @ruthjoe @casv and @starchris to take part in this contest. Success to you all!
This is my introductory post here
Saludos cordiales hermosa amiga ngoenyi, gracias por la mención.
Es correcto cuando afirmas que las L2 no afectan la funcionalidad, ni la estructura de la L1, pues están diseñas con el respaldo de la Blockchain principal para trabajar juntas.
Buena participación como siempre.
Éxitos, feliz y bendecida tarde.
Thank you for your prompt response. In deed, layer 2 is more like a helping hand to the layer 1. I appreciate your comment
I concur with your points here. Layer-2 blockchain are usually additional layers to the layer-1 to help provide extra features which are now observed as limitation to the existential blockchain.
It was nice reading from you. Simplified and easy to comprehend. Good luck with your publication.
Thank you for your valuable comment. I am glad that I was able do my part. I enjoyed learning this topic.
https://twitter.com/Celina58042963/status/1725910398287720596?t=3rkd9j7UUJlaU57iSRccvQ&s=19
Ciertamente la capa 2 es el caballito de batalla que ayuda a la Capa 1 a resolver lo que ésta no puede. Por tanto, es fundamental su actuación en blockchain como Ethereum y Bitcoin, al encargarse del procesamiento de las transacciones solicitadas en la Capa 1. Básicamente las dos capas trabajan en equipo. He aprendido de las soluciones de la cadena de Capa 1 y la de Capa 2, que has escogido en tu explicación, notando que cada solución se desenvuelve de manera diferente para atender asuntos específicos lo que hace que esta versatilidad juegue a favor de la escalabilidad, reducción de costos y aumento de la velocidad transaccional.
Gracias por compartir tan estupendo post.
¡Un fuerte abrazo!
The adoption of Blockchain in everyday life requires speed and efficiency in transaction processing. Not to forget too is low fees charged per transaction. Layer 2 is here to do just that for us.
Gracias amiga por participar con tu comentario y apoyo.
Saludos y mucho éxito. ¡Un fuerte abrazo!
Greetings 🤗
Just like always, you have presented the topic in a well balanced way. I must appreciate your understanding and research work. Layer 2 is an advanced innovation in the Blockchain technology and the most potential outcome of it is the gain of high degree of scalability in the parent chain.
The high loads of the transactions from the parent chain are transferred to the layer 2 chian and processed there and this thing improves TPS ratio much higher. The examples of the layer 2 solutions that you have presented are also very good.
Good luck with this very excellent entry 😃
Really appreciate your comments. If only most chains will make layer 2 a requirement, adoption of crypto currency as a means of payment will be hastened.
Perfect explanation. Layer 1 being the main blockchain is not a guarantee that it must be 100% perfect which is why layer 2 is created on top of layer 1 blockchain to make it has more functionality in terms of speed, scalable and other that makes blockchain more flexible. Success to you ma.
Like any other project, there is always need for improvement. Layer 2 is just the answer right now. Hopefully. Its application we make the Blockchain more interesting.
Upvoted. Thank You for sending some of your rewards to @null. It will make Steem stronger.
Thank you for the invite.
Indeed your publication about this topic layer 2 has given me an insight on the explanation about the said topic.
The world of Blockchain is deep because I thought I have seen it until I saw the topic layer 2. Learning seriously never ends. Thank you for the enlightenment that layer 2 is an additional program added to the existing one just to aid efficiency.
Best wishes!
Thank you for responding. I am glad that my entry is insightful. Happy learning
our insights into how Layer 2 protocols act as bridges facilitating interoperability between different blockchains are clear & accessible. The explanation of the underlying layer used by the Steem blockchain (Graphene) & the potential implications of integrating Layer 2 solutions on Steem in terms of scalability costs and ease of use is well - articulated.
Best wishes for the contest and I hope your thoughtful Analysis contributes positively to the discussions around blockchain technology!