Welcome to di wold of blockchain technology, where innovation dey always push di limit of wetin dey possible. One of di biggest challenge wey dey face di industry na scalability, di ability to handle large volume of transactions fast fast and handle am well. Layer2 scaling solutions dey offer sure way to move forward. Dem fit make transactions faster and cheaper, wey no go affect security or decentralization. Layer2 scaling solutions dey designed to handle scalability challenges wey blockchain networks dey face. For dis comprehensive guide, we go explore di benefits and different types of Layer2 scaling solutions and how dem dey work.
Why We Need Layer2 Scaling Solutions
Di current infrastructure no dey designed to handle di number of users and transactions wey dey increase everyday. Na wetin dey cause slow processing times and high fees, na dis kain thing dey discourage users. Layer2 scaling solutions dey designed to solve all dis problems, as e go make transactions faster and more efficient.
Layer2 scaling solutions dey built on top of existing blockchain networks. E mean say dem no need any changes to di underlying infrastructure. Na dis one make dem cost-effective solution for scaling blockchain networks. To add am join, Layer2 solutions fi handle much larger transactions than di base layer. Dis one dey possible because dem dey process transactions off-chain, and dem only submit dem to di blockchain wen necessary.
Benefits of Layer2 Scaling Solutions
Faster and Cheaper Transaction: Dem dey enable faster and more efficient transactions by processing transactions off-chain. Dis one mean say transactions fit dey processed immediately, with shikini moni.
Scalability: Layer2 solutions fi handle larger transactions than di base layer. E mean say you fi scale blockchain networks in a way wey no go affect security or decentralization.
Cost Effective : Anoda benefit of Layer2 solutions na say dem dey more cost-effective. Layer2 scaling solutions dey built on top of existing blockchain networks, dem no need any changes to di underlying infrastructure E mean say di cost of implementing Layer2 solutions dey very low compared to other scaling solutions.
Types of Layer2 Scaling Solutions
Different kain of Layer2 scaling solutions dey, wey get dia own unique advantages. Di most common types of Layer2 solutions na state channels, sidechains, rollups, plasma chains, and validium.
State Channels
State channels na Layer2 scaling solutions wey dey enable off-chain transactions between two parties. Dis one dey possible by opening channel between di two parties, wey go allow dem conduct multiple transactions off-chain. Di final state of di channel go dey submitted to di blockchain, wey go settle di transactions.
State channels dey ideal for applications wey require frequent transactions between two parties, like micropayments or gaming applications. Dem dey offer fast and efficient transactions, with shikini moni. But, dem no dey suitable for applications wey require transactions with multiple parties, as dis one go require opening multiple channels. Example of State Channels projects na Bitcoin lightning network and Raiden network.
Sidechains
Sidechains na one kain Layer2 scaling solution wey dey allow off-chain transactions. Dem be independent blockchain network wey dey connected to di main blockchain network. Na dis one dey allow make transactions dey processed off-chain, e go come reduce di load wey dey di main blockchain network.
Sidechains dey perfect for applications wey need plenti volume of transaction, like dem decentralized exchanges or trading platforms. Dem dey also offer fast and efficient transactions, with shikini moni. Sidechains need separate consensus mechanism wey e fi affect di security and decentralization of di network. Example of Sidechains project na Polygon wey dey run on hin own consensus mechanism with $MATIC as hin native token, wey dey used to take govern and pay for transaction moni. Na di most popular Ethereum Layer2 scaling solution and e fi process transaction fast with shikini moni.
Ethereum Layer2 Scaling Solutions
Ethereum na one of di most popular blockchain networks wey many decentralized applications dey build on top am. Because of dis, many pipu don put eye for Layer2 scaling solutions for Ethereum. Make we see di Layer2 scaling solutions for Ethereum.
Rollups
Rollups na one type of Layer2 scaling solution wey fi execute transactions off-chain by aggregating transactions on-chain. Dem dey recommended for applications wey need frequent transactions and still need to maintain high level security and decentralization. Dem dey also offer fast and efficient transactions with shikini moni. Dem dey more complex than other Layer2 solutions. Rollups get two types wey be Optimistic Rollups and ZK Rollups.
Optimistic Rollups
Optimistic Rollups na one type of Rollup wey assume say transactions dey valid until dem prove say e no valid. Optimistic Rollups dey also process transactions off-chain and dem go submit di final state to di blockchain. Dem dey use fraud-proving method to take identify transactions wey dey suspicious. Some example of Optimistic Rollups project na Arbitrum, Optimism, and Boba network. Optimism don become one of di most popular Ethereum layer2 scaling solutions wey wan enable cheaper and faster transactions. E dey EVM (Ethereum Virtual Machine) compatible. For April 2022, optimism launch DAO wey dem dey call Optimism Collective to fund public good and govern di protocol. Di native token na Optimism (OP). Arbitrum na also Ethereum layer2 scaling solution wey dey use Optimistic Rollups. On March 23, 2023, Arbitrum do airdrop for many wallets to take empower owners for dia new token ARB.
Zero-knowledge (ZK) Rollups
ZK Rollups na off-chain protocol wey use zero-knowledge proofs to verify transaction validity. ZK Rollups get advantage pass Optimistic Rollups for speed and still maintain security. Popular networks wey dey use ZK Rollups scaling technology na Zksync, Loopring - non-custodial exchange and payment protocol, Immutable X, etc.
Plasma
Plasma (sometimes dem dey call am pikin chain) na one Ethereum layer2 scaling solution wey allow off-chain transactions by creating hierarchical structure of sidechains. Dem too dey offer fast and efficient transactions with shikini moni and dem fit handle plenty transactions. But dem dey more complex pass other Layer2 solutions, dis one fi make am hard to implement. Plasma chains dey recommended for applications wey need plenti volume of transaction and still wan maintain high level of security and decentralization.
Validium
Validium na scaling solution wey dey allow off-chain transactions by aggregating transactions off-chain, and dem go submit to di main blockchain network. E dey make am possible to process transaction off-chain and still make sure say di security and decentralization of di network no shake. Validium dey similar to ZK Rollups wey dey use zero knowledge proofs to confirm di validity of transactions, e no dey exposed to cyber attack and e no get delay when person wan withdraw funds.
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