{"id":211442,"date":"2022-01-18T06:30:31","date_gmt":"2022-01-18T06:30:31","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=211442"},"modified":"2022-01-17T19:04:05","modified_gmt":"2022-01-17T19:04:05","slug":"concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/","title":{"rendered":"Concepts, scaling solutions and representative projects of Layer 2 ecosystem"},"content":{"rendered":"<p><span data-raw-html=\"span\">The TVL of Ethereum Layer 2 projects increased 600% from Q3 to Q4 of 2021, surpassing a peak of $7.17 billion on Nov 25th, 2021. The highest TVL as of Dec 11th was Arbitrum ($2.4 billion), followed by dYdX ($980 million), with <\/span><a href=\"https:\/\/www.footprint.network\/guest\/dashboard\/boba-network-dashboard-fp-a37a0712-1ab2-49e1-8504-f9469067c5d0?channel=u-DBc983#secret=D853F52965A1F0A3A19C1F58C535A3F0\"><span data-raw-html=\"span\">Boba Network<\/span><\/a><span data-raw-html=\"span\"> in third, with a TVL of $770 million.<\/span><\/p>\n<figure style=\"width: 1387px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/statichk.footprint.network\/article\/dcf5b18a-0ffd-468e-a325-4486b2d5e355.png\" alt=\"\u00a0Footprint Analytics:Layer 2 TVL\" width=\"1387\" height=\"604\" \/><figcaption class=\"wp-caption-text\"><em>\u00a0Footprint Analytics: Layer 2 TVL<\/em><\/figcaption><\/figure>\n<figure style=\"width: 897px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/statichk.footprint.network\/article\/2ef27ac8-e171-4ddd-b75d-7b4731a9726c.png\" alt=\"Footprint Analytics: TVL Share by Layer 2 Protocols\" width=\"897\" height=\"555\" \/><figcaption class=\"wp-caption-text\"><em>Footprint Analytics: TVL Share by Layer 2 Protocols<\/em><\/figcaption><\/figure>\n<p><span data-raw-html=\"span\">As the number of users on Ethereum grows, network congestion and high gas fees are becoming a primary problem for applications. As the demand for Ethereum increases, alleviating the problem has become a top priority. Vitalik Buterin presented &#8220;A rollup-centric Ethereum roadmap&#8221; at a conference on Oct. 26, implying that Layer 2 is the future of Ethereum scaling.<\/span><\/p>\n<h2><span data-raw-html=\"span\">What is Layer 2?<\/span><\/h2>\n<p><span data-raw-html=\"span\">The purpose of layers is to relieve pressure by expanding the Ethereum network\u2019s capacity. Layer 2 is a scaling solution that builds and improves upon Layer 1.\u00a0<\/span><\/p>\n<ul>\n<li><span data-raw-html=\"span\"><strong>Layer 1:<\/strong> Improvements to the blockchain itself to improve capabilities, e.g. on-chain scaling, consisting of solutions that increase block size or data structure, sharding techniques and segregated witness to achieve increased transaction processing capacity.<\/span><\/li>\n<li><span data-raw-html=\"span\"><strong>Layer 2:<\/strong> Instead of directly changing the block size and other rules of Layer 1 (the mainnet), a second layer under the chain (i.e. Layer 2) is built, including state channels, sidechains, Plasma and Rollup, where some transactions are processed to share the pressure of the mainnet and interact with it when necessary, i.e. off-chain scaling.<\/span><\/li>\n<\/ul>\n<p><span data-raw-html=\"span\">What is the connection between Layer 1 and Layer 2? They are like the relationship between the parent company and the subsidiary company. The main core technical point of Layer 2 is to transfer some transaction data requests on Ethereum to Layer 2 for processing. After processing, Layer 2 returns the transaction information across the chain to Layer 1 to reduce the pressure of transactions on Layer 1 and achieve low gas fee transaction results.<\/span><\/p>\n<p><span data-raw-html=\"span\">In addition to this, Layer 2 is an extension to Layer 1, breaking away from the limitations of Layer 1's original functionality and inheriting the security of Ethereum without compromising Layer 1's own features.<\/span><\/p>\n<h2><span data-raw-html=\"span\">Scaling solutions of Layer 2<\/span><\/h2>\n<p><span data-raw-html=\"span\">The early days of Layer 2 saw two main approaches \u2014 state channels and side chains. However, Layer 2 developers<\/span> <span data-raw-html=\"span\">have found that state channels could not be decentralized and anonymity was needed for privacy protection, and sidechains hold the control of the assets off-chain, which was a big concern for asset security. Hence, neither were ideal for scaling in Layer 2.<\/span><\/p>\n<p><span data-raw-html=\"span\">A good solution is one that maintains the security of data, the authenticity and anonymity of transactions and short exit cycles, and Layer 2 has taken advantage of these features to continuously improve its expansion capabilities.<\/span><\/p>\n<figure style=\"width: 1161px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/statichk.footprint.network\/article\/5ba200d1-342f-4c4f-bda1-5976905b9ff5.png\" alt=\"Footprint Analytics: Layer 2 TVL Growth Rate\" width=\"1161\" height=\"564\" \/><figcaption class=\"wp-caption-text\"><em>Footprint Analytics: Layer 2 TVL Growth Rate<\/em><\/figcaption><\/figure>\n<p style=\"text-align: left;\"><span data-raw-html=\"span\">According to Footprint Analytics, there are currently 19 projects in Layer 2, including DEX types and other networks. They remain the most noteworthy trends in the crypto sector, with total TVL up 11,400% from the beginning of the year to date. Layer 2's rapid growth is directly related to its scaling technology solutions, and there are currently four main scaling solutions: Plasma, Optimistic Rollup, ZK Rollup and Validium.<\/span><\/p>\n<figure style=\"width: 1599px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/statichk.footprint.network\/article\/e7024a0f-495a-4897-8acb-8c9914f5de05.png\" alt=\"Footprint Analytics: Layer 2 TVL Protocols(Latest Day)\" width=\"1599\" height=\"612\" \/><figcaption class=\"wp-caption-text\"><em>Footprint Analytics: Layer 2 TVL Protocols(Latest Day)\u00a0<\/em><\/figcaption><\/figure>\n<h2><span data-raw-html=\"span\">1. Plasma secures assets, but information unavailability is a barrier<\/span><\/h2>\n<p><span data-raw-html=\"span\">Plasma is an off-chain scaling solution that relies on the mainnet interacting with the least amount of off-chain transactions, and it uses child chains reporting to the root chain (i.e. Ethereum) to improve transaction throughput<\/span> <span data-raw-html=\"span\">(the number of requests the system can process per unit of time).<\/span><\/p>\n<p><span data-raw-html=\"span\">Plasma is one of the first Ethereum scaling projects from OMGX Network to come up with the Layer 2 concept, which works on the following principles.<\/span><\/p>\n<ul>\n<li><span data-raw-html=\"span\">First build the Plasma chain outside of <\/span><span data-raw-html=\"span\">Ethereum<\/span><span data-raw-html=\"span\"> and users transfer assets from <\/span><span data-raw-html=\"span\">Ethereum<\/span><span data-raw-html=\"span\"> to the Plasma chain, a process that requires the mainnet assets to be sent to a smart contract that manages the Plasma chain. That asset can then be accessed for interaction.<\/span><\/li>\n<li><span data-raw-html=\"span\">At regular intervals, the Plasma chain operator (i.e. the Plasma chain maintainer) will batch the transactions within that time period to generate a block.<\/span><\/li>\n<li><span data-raw-html=\"span\">The Plasma chain operator returns the result of the calculation to the mainnet and sends the status of the asset transaction to the current owner of the asset.<\/span><\/li>\n<\/ul>\n<p><span data-raw-html=\"span\">The breakthrough point of the Plasma chain scaling solution is that it guarantees the relative safety of the assets and the ability to extract transaction results on the mainnet even when the off-chain environment is unavailable. Thus, it increases the mainnet transaction throughput and reduces the interaction with the mainnet while lowering the transaction gas fee.<\/span><\/p>\n<p><span data-raw-html=\"span\">However, the Plasma mechanism is not perfect.<\/span><\/p>\n<ul>\n<li><span data-raw-html=\"span\">Data is not available.<\/span><span data-raw-html=\"span\"> The master chain does not have access to all off-chain data and can only be simply verified by means of a root hash<\/span> <span data-raw-html=\"span\">(a typical binary tree structure consisting of a root node, a set of intermediate nodes and a set of leaf nodes.)<\/span><\/li>\n<li><span data-raw-html=\"span\">Long withdrawal cycle. <\/span><span data-raw-html=\"span\">Complicated exit mechanism due to non-availability of mainnet data, requiring longer lead times for fraud proofs, resulting in longer withdrawal cycles of approximately 7 to 14 days or more.<\/span><\/li>\n<li><span data-raw-html=\"span\">Generic extensions are difficult. <\/span><span data-raw-html=\"span\">Restricting the data structure of sub-chains in a technical framework increases the difficulty.<\/span><\/li>\n<\/ul>\n<p><strong>Plasma<\/strong><span data-raw-html=\"span\"><strong> project:<\/strong> OMG Network\u00a0<\/span><\/p>\n<p><span data-raw-html=\"span\">According to Footprint Analytics, the current TVL for OMG Network is $3.1 million, placing it at #14 among Layer 2 projects, which is small compared to other projects and, in terms of trends, a stagnant project.<\/span><\/p>\n<p><span data-raw-html=\"span\">However, with the emergence of new solutions such as Optimistic Rollup in Layer 2 Projects,<\/span><span data-raw-html=\"span\"> the above problems of Plasma have gradually weakened the potentials of OMG Network<\/span><span data-raw-html=\"span\">. Hence, it has upgraded its brand to Boba Network using Optimistic Rollup scaling solutions to get more opportunities to grow.<\/span><\/p>\n<p><span data-raw-html=\"span\">Optimistic Rollup and\u00a0 ZK Rollup fundamentally solve the problem of the unavailability of Plasma data.<\/span><\/p>\n<h2><span data-raw-html=\"span\">2. Optimistic Rollup compresses on-chain transaction data<\/span><\/h2>\n<p><span data-raw-html=\"span\">Optimistic Rollup is a combination of Optimistic contracts and on-chain data availability, choosing to trust the authenticity of transaction packages submitted by operators and penalizing fraud.<\/span><\/p>\n<p><span data-raw-html=\"span\">It operates on the principle that when Layer 2 calculates the result back to Layer 1, if the verifier believes the result may be fraudulent, then the verifier can initiate a challenge and the master chain freezes the asset and performs transaction data and record verification to prove whether it is a genuine or fraudulent transaction. Alternatively, if no validator doubts the result of the calculation, the master chain defaults the transaction to be genuine.<\/span><\/p>\n<p><span data-raw-html=\"span\">This model improves on-chain efficiency, packages multiple transactions for operation, saves time and saves gas fees, has spaner compatibility, reduces developer workload and better solves the pain point of Ethereum congestion.<\/span><\/p>\n<p>The disadvantages are:<\/p>\n<ul>\n<li><span data-raw-html=\"span\">Inefficient validation. <\/span><span data-raw-html=\"span\">Validation of fraud proofs mechanisms resulting in long challenge periods for assets to be deposited and transferred out.<\/span><\/li>\n<li><span data-raw-html=\"span\">Funds may be frozen.<\/span><span data-raw-html=\"span\"> If the verifier believes the result is fraudulent, it is vulnerable to asset freezing by the master chain.<\/span><\/li>\n<li><span data-raw-html=\"span\">Not as scalable as ZK Rollup.<\/span><span data-raw-html=\"span\"> relatively low transaction compression.<\/span><\/li>\n<\/ul>\n<p><span data-raw-html=\"span\"><strong>Optimistic Rollup projects:<\/strong> Arbitrum and Boba Network\u00a0<\/span><\/p>\n<p><span data-raw-html=\"span\">According to Footprint Analytics, the Arbitrum chain is currently the Layer 2 leader, while the Boba Network is an emerging network that has been growing rapidly in the last month. They use the Optimistic Rollup scaling solution, which enables high throughput and allows developers to deploy and operate smart contracts at low cost, while maintaining trust-free security.<\/span><\/p>\n<h2><span data-raw-html=\"span\">3. <\/span><span data-raw-html=\"span\">ZK Rollup is highly decentralized but difficult to develop<\/span><\/h2>\n<p><span data-raw-html=\"span\">ZK Rollups are designed to improve scalability by centralizing a large number of funds transfers in a single transaction. Whereas Plasma creates one transaction each time a funds transfer occurs, ZK-Rollups bundle hundreds of transfers into a single transaction.\u00a0<\/span><\/p>\n<p><span data-raw-html=\"span\">Compared to Optimistic Rollup, ZK Rollup has a higher transaction compression rate. This is reflected in the fact that it verifies the veracity of a transaction packet through zero-knowledge proofs, where the operator is able to convince the verifier that an assertion is correct without providing any useful information to the verifier. This is done as follows.<\/span><\/p>\n<ul>\n<li><span data-raw-html=\"span\">User transfers in and locks assets and Layer 2 adds account asset information.<\/span><\/li>\n<li><span data-raw-html=\"span\">In the Rollup network, users sign and send transactions.<\/span><\/li>\n<li><span data-raw-html=\"span\">Operators collect transactions, package them in bulk and generate zero-knowledge proofs.<\/span><\/li>\n<li><span data-raw-html=\"span\">The operator broadcasts the transaction package and zero proof of knowledge to the master chain.<\/span><\/li>\n<li><span data-raw-html=\"span\">The smart contract verifies the authenticity of the transaction packet through zero-knowledge proofs, updates the values and performs the transfer operation.<\/span><\/li>\n<\/ul>\n<p><span data-raw-html=\"span\">The advantages are:<\/span><\/p>\n<ul>\n<li><span data-raw-html=\"span\">Achieving decentralization<\/span><\/li>\n<li><span data-raw-html=\"span\">High uplink efficiency<\/span><\/li>\n<li><span data-raw-html=\"span\">Higher transaction compression rates<\/span><\/li>\n<li><span data-raw-html=\"span\">High validation efficiency, and no validation waiting period<\/span><\/li>\n<li><span data-raw-html=\"span\">Better security as well as privacy. Zero Knowledge Proof does not reveal transaction details and ZK Rollup technology ensures that the data submitted to the master chain is authentic and valid.<\/span><\/li>\n<\/ul>\n<p><span data-raw-html=\"span\">The disadvantages are:<\/span><\/p>\n<ul>\n<li><span data-raw-html=\"span\">The complexity of the process of generating zero-knowledge proofs.<\/span><\/li>\n<li><span data-raw-html=\"span\">Application customisation is difficult to develop and compatibility is low.<\/span><\/li>\n<\/ul>\n<p><span data-raw-html=\"span\"><strong>ZK Rollup project:<\/strong> dYdX\u00a0\u00a0<\/span><\/p>\n<p><span data-raw-html=\"span\">dYdX is building a robust and professional exchange for trading crypto assets so that users can actually own their trades and ultimately own the exchange itself.<\/span><\/p>\n<figure style=\"width: 1390px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/statichk.footprint.network\/article\/3381d827-ac23-41bb-b081-703250de965f.png\" alt=\"\u00a0Footprint Analytics:dYdX TVL\" width=\"1390\" height=\"534\" \/><figcaption class=\"wp-caption-text\"><em>\u00a0Footprint Analytics:dYdX TVL<\/em><\/figcaption><\/figure>\n<figure style=\"width: 1407px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/statichk.footprint.network\/article\/d1a42a63-5a4c-435b-9a22-7533d73c477d.png\" alt=\"\u00a0Footprint Analytics:DYDX Token Price\" width=\"1407\" height=\"541\" \/><figcaption class=\"wp-caption-text\"><em>Footprint Analytics: dYdX Token Price<\/em><\/figcaption><\/figure>\n<p><span data-raw-html=\"span\">dYdX is a leading DeFi derivative and one of the earliest adopters of ZK Rollup technology. Overall data performance: Following the continued upward trend since August, TVL has held steady in the top 2 Layer 2 projects with a current TVL of US$976 million and a downward trend in its Token (DYDX) price, currently at US$9.04 with a market cap of US$570 million.<\/span><\/p>\n<h2><span data-raw-html=\"span\">4<\/span><span data-raw-html=\"span\">. Validium is a hybrid scaling solution with low security<\/span><\/h2>\n<p><span data-raw-html=\"span\">Validium is a hybrid scaling solution that enables users to choose between the ZK Rollup and Validium modes. However, unlike ZK Rollup, Validium's data stays under the chain, while ZK Rollup's data availability is on the chain.<\/span><\/p>\n<p><span data-raw-html=\"span\">Validium is probably better suited for applications that do not require as much trust (e.g. gaming DApps), while ZK Rollup is better suited for scenarios such as payments and exchanges that require more security.<\/span><\/p>\n<p><strong>Validium<\/strong><span data-raw-html=\"span\"><strong> projects:<\/strong> DeversiFi and ImmutableX\u00a0\u00a0<\/span><\/p>\n<figure style=\"width: 1277px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/statichk.footprint.network\/article\/48a13b59-d45a-4be9-aa78-fbae57b51f07.png\" alt=\"Footprint Analytics:DeversiFi TVL & ImmutableX TVL\" width=\"1277\" height=\"548\" \/><figcaption class=\"wp-caption-text\"><em>Footprint Analytics:DeversiFi TVL & ImmutableX TVL<\/em><\/figcaption><\/figure>\n<p style=\"text-align: left;\"><span data-raw-html=\"span\">DeversiFi, which claims to be the easiest way to access DeFi opportunities on Etheruem: invest, trade and send tokens without paying gas fees, the largest current Validium-based decentralized exchange, surpassed a record high TVL of over 100 million on 4 December, according to Footprint Analytics.<\/span><\/p>\n<p><span data-raw-html=\"span\">ImmutableX, the first Layer 2 of NFT on Ethereum, promises zero-gas fees for games, apps, and marketplaces as well as instant transaction scalability. It currently sits at #7 in the Layer 2 rankings.<\/span><\/p>\n<h2><span data-raw-html=\"span\">Summary<\/span><\/h2>\n<p><span data-raw-html=\"span\">Layer 2 scaling solutions have been updated and iterated over the years to achieve a secure solution for scaling on Ethereum, alleviating problems such as congestion and high gas fees. They have become the mainstream technical solution for scaling applications of blockchain technology.\u00a0<\/span><\/p>\n<p><span data-raw-html=\"span\">Layer 2's technological innovation and rapid development is also driving the DeFi market, NFT and virtual worlds, among others. As network throughput improves and transactions become more efficient, Layer 2 will likely become the future of Ethereum scaling.<\/span><\/p>\n<p><span data-raw-html=\"span\">The above content is only a personal view, for reference and information only, and does not constitute investment advice. If there are obvious errors in understanding or data, feedback is welcome.<\/span><\/p>\n<p><span data-raw-html=\"span\">This work is the original work of the author, please indicate the source of reproduction. Commercial reproduction requires authorization from the author. Unauthorized commercial reproduction, excerpt or use in other ways will be investigated for relevant legal responsibilities.<\/span><\/p>\n<p><span data-raw-html=\"span\">Date & Author: January 28th, 2022, vincy@footprint.network<\/span><\/p>\n<p><span data-raw-html=\"span\">Data Source: <\/span><strong><a href=\"https:\/\/www.footprint.network\/guest\/dashboard\/layer-2-dashboard-fp-98bbb807-7281-4167-ae3e-f1679a16e893?channel=u-b1lc4J\">Footprint Layer 2 Dashboard<\/a><\/strong><\/p>\n<h2><span data-raw-html=\"span\">What is Footprint?<\/span><\/h2>\n<p><span data-raw-html=\"span\">Footprint Analytics is an all-in-one analysis platform to visualize blockchain data and discover insights. It cleans and integrates on-chain data so users of any experience level can quickly start researching tokens, projects, and protocols. With over a thousand dashboard templates plus a drag-and-drop interface, anyone can build their own customized charts in minutes. Uncover blockchain data and discover the value trend behind the project.\u00a0\u00a0<\/span><\/p>\n<ul>\n<li><a href=\"https:\/\/www.footprint.network\/?cnl=cryptoslate\">Footprint Website<\/a><\/li>\n<li><a href=\"https:\/\/discord.gg\/3HYaR6USM7\">Discord<\/a><\/li>\n<li><a href=\"https:\/\/twitter.com\/Footprint_DeFi\">Twitter<\/a><\/li>\n<li><a href=\"https:\/\/t.me\/joinchat\/4-ocuURAr2thODFh\">Telegram<\/a><\/li>\n<li><a href=\"https:\/\/www.youtube.com\/channel\/UCKwZbKyuhWveetGhZcNtSTg\">YouTube<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The TVL of Ethereum Layer 2 projects increased 600% from Q3 to Q4 of 2021, surpassing a peak of $7.17 billion on Nov 25th, 2021. The highest TVL as of Dec 11th was Arbitrum ($2.4 billion), followed by dYdX ($980 million), with Boba Network in third, with a TVL of $770 million. As the number [&hellip;]<\/p>\n","protected":false},"author":828,"featured_media":211443,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Concepts, scaling solutions and representative projects of Layer 2 ecosystem<\/title>\n<meta name=\"description\" content=\"Layer 2 blockchain protocols are built atop Layer 1s, and exist to make transactions faster and lower gas fees, while solving scaling problems.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Concepts, scaling solutions and representative projects of Layer 2 ecosystem\" \/>\n<meta property=\"og:description\" content=\"Layer 2 blockchain protocols are built atop Layer 1s, and exist to make transactions faster and lower gas fees, while solving scaling problems.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/FootprintAnalytics\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-18T06:30:31+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-01-17T19:04:05+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/01\/image-12-11.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"670\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Footprint Analytics\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Footprint Analytics\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Footprint Analytics\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"11 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/footprint-analytics\/#person\",\"name\":\"Footprint Analytics\",\"url\":\"https:\/\/cryptoslate.com\/author\/footprint-analytics\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/footprint-analytics\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/footprint-analytics\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/10\/footprint-logo-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/10\/footprint-logo-300x300.jpg\",\"caption\":\"Footprint Analytics\"},\"description\":\"Footprint Analytics provides API and visualization tools to uncover and visualize data across the blockchain, including NFT and GameFi data. It currently col...\",\"worksFor\":{\"@id\":\"https:\/\/cryptoslate.com\/#organization\"},\"sameAs\":[\"https:\/\/www.footprint.network\",\"https:\/\/x.com\/Footprint_Data\",\"https:\/\/www.linkedin.com\/company\/footprintanalytics\"]},\"headline\":\"Concepts, scaling solutions and representative projects of Layer 2 ecosystem\",\"datePublished\":\"2022-01-18T06:30:31+00:00\",\"dateModified\":\"2022-01-18T06:30:31+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/\"},\"wordCount\":1995,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/cryptoslate.com\/#organization\"},\"articleSection\":[\"Analysis\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/#respond\"]}],\"copyrightYear\":\"2022\",\"copyrightHolder\":{\"@id\":\"https:\/\/cryptoslate.com\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/\",\"url\":\"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/\",\"name\":\"Concepts, scaling solutions and representative projects of Layer 2 ecosystem\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/#website\"},\"datePublished\":\"2022-01-18T06:30:31+00:00\",\"dateModified\":\"2022-01-18T06:30:31+00:00\",\"description\":\"Layer 2 blockchain protocols are built atop Layer 1s, and exist to make transactions faster and lower gas fees, while solving scaling problems.\",\"breadcrumb\":{\"@id\":\"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/cryptoslate.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Concepts, scaling solutions and representative projects of Layer 2 ecosystem\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/cryptoslate.com\/#website\",\"url\":\"https:\/\/cryptoslate.com\/\",\"name\":\"CryptoSlate\",\"description\":\"Cryptocurrency News and Real-time Coin Data\",\"publisher\":{\"@id\":\"https:\/\/cryptoslate.com\/#organization\"},\"inLanguage\":\"en-US\"},{\"@type\":\"NewsMediaOrganization\",\"@id\":\"https:\/\/cryptoslate.com\/#organization\",\"name\":\"CryptoSlate\",\"url\":\"https:\/\/cryptoslate.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/cryptoslate.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/05\/c-logo.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/05\/c-logo.jpg\",\"width\":1000,\"height\":1000,\"caption\":\"CryptoSlate\"},\"image\":{\"@id\":\"https:\/\/cryptoslate.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/twitter.com\/cryptoslate\",\"https:\/\/www.instagram.com\/cryptoslate\",\"https:\/\/www.linkedin.com\/company\/cryptoslate\",\"https:\/\/www.youtube.com\/c\/cryptoslate\",\"https:\/\/cryptoslate.substack.com\",\"https:\/\/t.me\/cryptoslatenews\",\"https:\/\/www.crunchbase.com\/organization\/cryptoslate\",\"https:\/\/iq.wiki\/wiki\/cryptoslate\",\"https:\/\/news.google.com\/publications\/CAAqKggKIiRDQklTRlFnTWFoRUtEMk55ZVhCMGIzTnNZWFJsTG1OdmJTZ0FQAQ\",\"https:\/\/muckrack.com\/media-outlet\/cryptoslate\",\"https:\/\/www.tiktok.com\/@cryptoslatenews\"],\"publishingPrinciples\":\"https:\/\/cryptoslate.com\/editorial-policy\/#editorial-principles\",\"ownershipFundingInfo\":\"https:\/\/cryptoslate.com\/disclaimers\/how-cryptoslate-makes-and-spends-money\/\",\"correctionsPolicy\":\"https:\/\/cryptoslate.com\/editorial-policy\/#corrections-feedback\",\"ethicsPolicy\":\"https:\/\/cryptoslate.com\/editorial-policy\/#editorial-principles\",\"foundingDate\":\"2017-08-04\",\"founder\":[{\"@type\":\"Person\",\"name\":\"Nate Whitehill\"},{\"@type\":\"Person\",\"name\":\"Matthew Blancarte\"}],\"contactPoint\":[{\"@type\":\"ContactPoint\",\"contactType\":\"customer support\",\"url\":\"https:\/\/cryptoslate.com\/contact\/\",\"availableLanguage\":\"en-US\"},{\"@type\":\"ContactPoint\",\"contactType\":\"sales\",\"url\":\"https:\/\/cryptoslate.com\/advertising\/\",\"availableLanguage\":\"en-US\"},{\"@type\":\"ContactPoint\",\"contactType\":\"newsroom\",\"url\":\"https:\/\/cryptoslate.com\/editorial-policy\/#corrections-feedback\",\"email\":\"tips@cryptoslate.com\",\"availableLanguage\":\"en-US\"}],\"masthead\":\"https:\/\/cryptoslate.com\/about\/#masthead\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/#\/schema\/person\/e86bed8856d96913bcbe44d8c5d0549b\",\"name\":\"Footprint Analytics\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/cryptoslate.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/10\/footprint-logo-150x150.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/10\/footprint-logo-150x150.jpg\",\"caption\":\"Footprint Analytics\"},\"description\":\"Footprint Analytics provides API and visualization tools to uncover and visualize data across the blockchain, including NFT and GameFi data. It currently collects, parses and cleans data from 20+ chains into structured and semantic tables. It lets users build charts and dashboards without code, using a drag-and-drop interface as well as with SQL.\",\"sameAs\":[\"https:\/\/www.footprint.network\/\",\"https:\/\/www.facebook.com\/FootprintAnalytics\",\"https:\/\/www.linkedin.com\/company\/footprintanalytics\/\",\"https:\/\/twitter.com\/Footprint Analytics\",\"https:\/\/www.youtube.com\/c\/FootprintAnalytics\"],\"url\":\"https:\/\/cryptoslate.com\/author\/footprint-analytics\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Concepts, scaling solutions and representative projects of Layer 2 ecosystem","description":"Layer 2 blockchain protocols are built atop Layer 1s, and exist to make transactions faster and lower gas fees, while solving scaling problems.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/","og_locale":"en_US","og_type":"article","og_title":"Concepts, scaling solutions and representative projects of Layer 2 ecosystem","og_description":"Layer 2 blockchain protocols are built atop Layer 1s, and exist to make transactions faster and lower gas fees, while solving scaling problems.","og_url":"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/","og_site_name":"CryptoSlate","article_author":"https:\/\/www.facebook.com\/FootprintAnalytics","article_published_time":"2022-01-18T06:30:31+00:00","article_modified_time":"2022-01-17T19:04:05+00:00","og_image":[{"width":1280,"height":670,"url":"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/01\/image-12-11.png","type":"image\/png"}],"author":"Footprint Analytics","twitter_card":"summary_large_image","twitter_creator":"@Footprint Analytics","twitter_site":"@cryptoslate","twitter_misc":{"Written by":"Footprint Analytics","Est. reading time":"11 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"NewsArticle","@id":"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/#article","isPartOf":{"@id":"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/"},"author":{"@type":"Person","@id":"https:\/\/cryptoslate.com\/author\/footprint-analytics\/#person","name":"Footprint Analytics","url":"https:\/\/cryptoslate.com\/author\/footprint-analytics\/","mainEntityOfPage":{"@id":"https:\/\/cryptoslate.com\/author\/footprint-analytics\/"},"image":{"@type":"ImageObject","@id":"https:\/\/cryptoslate.com\/author\/footprint-analytics\/#authorimage","url":"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/10\/footprint-logo-300x300.jpg","contentUrl":"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/10\/footprint-logo-300x300.jpg","caption":"Footprint Analytics"},"description":"Footprint Analytics provides API and visualization tools to uncover and visualize data across the blockchain, including NFT and GameFi data. It currently col...","worksFor":{"@id":"https:\/\/cryptoslate.com\/#organization"},"sameAs":["https:\/\/www.footprint.network","https:\/\/x.com\/Footprint_Data","https:\/\/www.linkedin.com\/company\/footprintanalytics"]},"headline":"Concepts, scaling solutions and representative projects of Layer 2 ecosystem","datePublished":"2022-01-18T06:30:31+00:00","dateModified":"2022-01-18T06:30:31+00:00","mainEntityOfPage":{"@id":"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/"},"wordCount":1995,"commentCount":0,"publisher":{"@id":"https:\/\/cryptoslate.com\/#organization"},"articleSection":["Analysis"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/#respond"]}],"copyrightYear":"2022","copyrightHolder":{"@id":"https:\/\/cryptoslate.com\/#organization"}},{"@type":"WebPage","@id":"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/","url":"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/","name":"Concepts, scaling solutions and representative projects of Layer 2 ecosystem","isPartOf":{"@id":"https:\/\/cryptoslate.com\/#website"},"datePublished":"2022-01-18T06:30:31+00:00","dateModified":"2022-01-18T06:30:31+00:00","description":"Layer 2 blockchain protocols are built atop Layer 1s, and exist to make transactions faster and lower gas fees, while solving scaling problems.","breadcrumb":{"@id":"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/cryptoslate.com\/concepts-scaling-solutions-and-representative-projects-of-layer-2-ecosystem\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/cryptoslate.com\/"},{"@type":"ListItem","position":2,"name":"Concepts, scaling solutions and representative projects of Layer 2 ecosystem"}]},{"@type":"WebSite","@id":"https:\/\/cryptoslate.com\/#website","url":"https:\/\/cryptoslate.com\/","name":"CryptoSlate","description":"Cryptocurrency News and Real-time Coin Data","publisher":{"@id":"https:\/\/cryptoslate.com\/#organization"},"inLanguage":"en-US"},{"@type":"NewsMediaOrganization","@id":"https:\/\/cryptoslate.com\/#organization","name":"CryptoSlate","url":"https:\/\/cryptoslate.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/cryptoslate.com\/#\/schema\/logo\/image\/","url":"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/05\/c-logo.jpg","contentUrl":"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/05\/c-logo.jpg","width":1000,"height":1000,"caption":"CryptoSlate"},"image":{"@id":"https:\/\/cryptoslate.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/twitter.com\/cryptoslate","https:\/\/www.instagram.com\/cryptoslate","https:\/\/www.linkedin.com\/company\/cryptoslate","https:\/\/www.youtube.com\/c\/cryptoslate","https:\/\/cryptoslate.substack.com","https:\/\/t.me\/cryptoslatenews","https:\/\/www.crunchbase.com\/organization\/cryptoslate","https:\/\/iq.wiki\/wiki\/cryptoslate","https:\/\/news.google.com\/publications\/CAAqKggKIiRDQklTRlFnTWFoRUtEMk55ZVhCMGIzTnNZWFJsTG1OdmJTZ0FQAQ","https:\/\/muckrack.com\/media-outlet\/cryptoslate","https:\/\/www.tiktok.com\/@cryptoslatenews"],"publishingPrinciples":"https:\/\/cryptoslate.com\/editorial-policy\/#editorial-principles","ownershipFundingInfo":"https:\/\/cryptoslate.com\/disclaimers\/how-cryptoslate-makes-and-spends-money\/","correctionsPolicy":"https:\/\/cryptoslate.com\/editorial-policy\/#corrections-feedback","ethicsPolicy":"https:\/\/cryptoslate.com\/editorial-policy\/#editorial-principles","foundingDate":"2017-08-04","founder":[{"@type":"Person","name":"Nate Whitehill"},{"@type":"Person","name":"Matthew Blancarte"}],"contactPoint":[{"@type":"ContactPoint","contactType":"customer support","url":"https:\/\/cryptoslate.com\/contact\/","availableLanguage":"en-US"},{"@type":"ContactPoint","contactType":"sales","url":"https:\/\/cryptoslate.com\/advertising\/","availableLanguage":"en-US"},{"@type":"ContactPoint","contactType":"newsroom","url":"https:\/\/cryptoslate.com\/editorial-policy\/#corrections-feedback","email":"tips@cryptoslate.com","availableLanguage":"en-US"}],"masthead":"https:\/\/cryptoslate.com\/about\/#masthead"},{"@type":"Person","@id":"https:\/\/cryptoslate.com\/#\/schema\/person\/e86bed8856d96913bcbe44d8c5d0549b","name":"Footprint Analytics","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/cryptoslate.com\/#\/schema\/person\/image\/","url":"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/10\/footprint-logo-150x150.jpg","contentUrl":"https:\/\/cryptoslate.com\/wp-content\/uploads\/2021\/10\/footprint-logo-150x150.jpg","caption":"Footprint Analytics"},"description":"Footprint Analytics provides API and visualization tools to uncover and visualize data across the blockchain, including NFT and GameFi data. It currently collects, parses and cleans data from 20+ chains into structured and semantic tables. It lets users build charts and dashboards without code, using a drag-and-drop interface as well as with SQL.","sameAs":["https:\/\/www.footprint.network\/","https:\/\/www.facebook.com\/FootprintAnalytics","https:\/\/www.linkedin.com\/company\/footprintanalytics\/","https:\/\/twitter.com\/Footprint Analytics","https:\/\/www.youtube.com\/c\/FootprintAnalytics"],"url":"https:\/\/cryptoslate.com\/author\/footprint-analytics\/"}]}},"_links":{"self":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/211442"}],"collection":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/users\/828"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/comments?post=211442"}],"version-history":[{"count":9,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/211442\/revisions"}],"predecessor-version":[{"id":212026,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/211442\/revisions\/212026"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media\/211443"}],"wp:attachment":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media?parent=211442"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/categories?post=211442"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/tags?post=211442"},{"taxonomy":"prediction_market_topic","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/prediction_market_topic?post=211442"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/post_folder?post=211442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}