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Ethereum Layer 2s have reduced transaction costs while accelerating network speed. This is significant in boosting the adoption of blockchain technology.
Bitcoin pioneered the use of blockchain technology in modern life. However, transaction speed and costs became a huge barrier to integrating the coin in daily transactions as the number of blocks increased. Later, Ethereum came to extend the utility of blockchain technology beyond just payments.
With many projects happening on the Ethereum blockchain, high gas fees and slow transaction speed have also become a challenge. The concept of Layer 2s was born to solve this. Layer 2s are side blockchains that handle bulk transaction “rough work” off the main Ethereum blockchain. They submit final results to the Ethereum blockchain, thus reducing the pressure it could have faced doing all the work alone.
So, what are the trends in layer 2s?
Layer 2s like Optimism, Arbitrum, and zkSync use diverse technologies to speed up transactions and optimize costs. They help Ethereum be faster and secure while boosting its usage and adoption. As of today, many DeFi, NFTs, and gaming developers are building on top of Ethereum for optimal performance.
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