The Tech Quiz - Season 18
My Greetings to all the steemian working on this great platform. My prayer is that you always get success in your life. I am thankful to @malikusman1 organising wonderful contest related to technology.
What are Layer 2 chains in crypto? |
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Layer 2 is a popular terminology of blockchain systems. To best understand this term, we first need to understand the Cap Theorem of the blockchain Trilemma. The blockchain trilemma simply means that the three main characters that play their role are decentralization, scalability, and security.
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Scalbility refers to the speed or efficiency of how many transactions it can perform in seconds. Decentralization means that the system is decentralized, it is not owned by any one person, it can be operated by different people. Security refers to making transactions safe.
The Cap Therm states that to achieve your goals you can fulfill two of these three and compromise with one. So it is that decentralization and security are adopted by crypto and the scalability that is missing. Layer 2 is designed to solve the problem of scalability, providing security as well as speed and efficiency. Layer 2 built on layer 1 technology.
Which is your favourite one? |
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Yes, I don't have much idea about this work and I don't know much about this field, but from the research I have done recently and the couple of articles that took me to write this post, and from what I have seen, this is what I think. It is layer two which is the best because it is running with all three factors, it has worked with all three features of scalability, decentralization and security and it has also solved the problem of speed of transaction.
It can also do more transactions. I explain this with a simple example, like if there is a good highway that is safe, but there will be traffic issues on it. If a flyover is built along it, the flow of traffic will be better. So the example of layer two is similar to the same flyover bridge.
Pros and cons of Layer 2 chains |
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Yes, of course, when any new technology or system is developed, it is only after using it that the advantages and disadvantages are known. Similarly, since this system has been introduced, various critics and proponents have pointed out its advantages and disadvantages. If we talk about its advantages, then its biggest advantage is Compatibility it can not affect the function of layer 1 blockchain and its Increase the capacity to handle more transactions. It operates thousands of transactions simultaneously. It has low transactions cost with high transaction speed.
And it has its downsides as well. It depends on layer 1. It can’t lonely operate. So a big disadvantage is security risk and it also has limited features and layer 2 can play only specific features
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I would like to invite @maryamnadeem ,@mostofajaman and @ shehzadmansuri to participate in this wonderful contest 👌
Regard @missamabbas