What is Layer 2？

Layer 2 (L2) solutions are secondary frameworks or protocols built on top of existing blockchain systems (Layer 1 or L1), with the primary goal of solving the transaction speed and scaling difficulties faced by major cryptocurrency networks like Bitcoin and Ethereum. These solutions are crucial for enabling blockchains to process thousands of transactions per second (TPS), a necessity for their long-term growth and adoption on a wider scale

hy is Layer 2 important？

Layer 2 solutions are essential for enhancing the scalability, speed, and efficiency of blockchain networks without compromising on security or decentralization. By offloading transactions from the main blockchain (Layer 1) to a secondary layer, these solutions significantly increase transaction throughput, reduce transaction fees, and improve overall network efficiency. This not only helps in decongesting the mainnet but also ensures that the robust decentralized security standards of the main blockchain are extended to a wider range of decentralized applications (DApps), making advanced blockchain functionalities more accessible and practical for everyday use.

What are the currently well-known head Layer 2 projects?

• Arbitrum: Arbitrum is designed to improve the scalability of Ethereum by handling transactions off the main chain while ensuring the security and decentralization of the network. It allows for the execution of smart contracts and transactions at a lower cost and higher speed than on Ethereum's mainnet.

• Optimism: Utilizes Optimistic Rollups to scale Ethereum by assuming transactions are valid, reducing computation and costs.

• Starknet: Employs Validity Rollups for high throughput and low gas costs, maintaining Ethereum's security.

• zkSync: Focuses on scaling Ethereum through zkRollup technology, supporting payments, swaps, and NFT minting.

What are the important indicators for evaluating Layer 2?

• Scalability and Throughput: Ability to handle a high number of transactions per second compared to the underlying Layer 1 blockchain.

• Security: Layer 2 solutions must inherit the security guarantees of the main blockchain to ensure the safety of transactions.

• Decentralization: Maintaining a high level of decentralization without compromising on scalability or security.

• Compatibility: Compatibility with existing DApps and ease of migration from Layer 1 to Layer 2 for developers.

• User Adoption: The level of adoption and usage by developers and users within the ecosystem.

• Cost Efficiency: Reduction in transaction fees compared to Layer 1, making it economically viable for users and applications.