😤We do a little writing🤓
Layer 2 chains provide a solution for enhancing the scalability, security, and privacy of blockchain networks. As a relatively new technology, the potential of #L2 chains is vast and largely untapped.
Here's why I'm bullish🧵👇
Layer 2 chains provide a solution for enhancing the scalability, security, and privacy of blockchain networks. As a relatively new technology, the potential of #L2 chains is vast and largely untapped.
Here's why I'm bullish🧵👇
1(a)/ An L2 chain is a layer built on top of a blockchain network (like #Ethereum), helping address the limitations of traditional, or "Layer 1," chains.
1(b)/ L2 chains work by allowing some transactions to be processed outside of the main blockchain, reducing the burden on the network and enabling faster transaction speeds.
2/ #Layer2chains are a great way to scale blockchain networks and increase transaction throughput. According to Finder's panel of fintech experts, Layer 2 solutions can increase throughput by up to 5,000 transactions per second.
3/ Layer 2 chains also offer lower fees and faster transaction speeds compared to Layer 1 chains. On average, Layer 2 solutions can reduce transaction fees by up to 90%. (miss me with that high #Ethereum gas fees kek 🤡)
4/ Layer 2 chains also offer more privacy than Layer 1 chains, as the transactions are kept off-chain and are not publicly visible. This ensures that the information is secure and private. One of these ways is through the use of zero knowledge proofs (ZKPs).
5/ According to a report by @DefiantNews, the Ethereum Layer 2 ecosystem currently has approximately $4.3 billion of total value locked in, with @arbitrum and @optimismFND among the leading L2 solutions.
6/ Layer 2 chains also provide better scalability, as they are able to scale faster and more efficiently than Layer 1 chains. The @HeliumFndn's partnership with @solana is expected to positively impact #SOL’s price according to 38% of Finder’s panel.
7/ Did you know that L2 chains can help reduce the carbon footprint of blockchain networks? These off-chain solutions require less computing power to process transactions, making them more energy efficient.
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