How Do L2 Networks Impact the Crypto Future?
We see constant development and improvement in our crypto world. Powerful blockchains such as Ethereum have excelled in many aspects, but there have always been areas that require upgrades - scalability and transaction efficiency. One solution to these problems is L2 networks. In this article, we will look at what L2 Networks are and why they are important for the future of cryptocurrencies.
About L2 Networks & Problems That They Solve
Layer2 Networks (L2 blockchains) – additional blockchains running on top of first-layer blockchains such as Ethereum and Bitcoin. The main goal of L2 Networks is to improve the performance and efficiency of the blockchain without compromising its security. They are designed to solve several problems of Layer1, including:
- Expanding limited scalability
- Decreasing high gas fees
- Accelerating slow transaction confirmations
Examples of Layer2 Networks
There are many L2 Networks today, but let's look at the most popular ones. Ethereum, one of the top technologies, faces a scalability problem, leading to high fees and delays in confirming transactions. However, thanks to the development of Layer2 blockchains such as Arbitrum, Optimism, and Polygon, these problems have begun to be solved.
Arbitrum
Arbitrum is an Ethereum L2 network developed by Offchain Labs. It provides solutions to reduce fees and increase transaction speeds, providing a better user experience. Arbitrum uses Optimistic Rollup to facilitate scaling and enable decentralized applications (DApps) to operate more efficiently.
Optimism
Optimism is another important Ethereum L2 Network. It is also built on top of the Optimistic Rollup solution and is designed to improve Ethereum performance. Many popular platforms cooperate with Optimism, for example, CoinBase. Read about the differences between Optimism and Arbitrum.
Polygon
Polygon, while not strictly an L2 Network, is tightly integrated with Ethereum and provides similar benefits. Formerly known as the Matic Network, it specializes in scalability and speed. Polygon allows you to create sidechains with high throughput and reduced fees, making it an attractive solution for projects running on Ethereum.
These Ethereum L2 Networks work symbiosis with the main blockchain, providing users access to improved capabilities. Their integration into the cryptocurrency ecosystem strengthens Ethereum's scalability and makes it more accessible and efficient for all users. Other L2 solutions for Ethereum include ImmutableX, Cartesi, zkSync, Hermez, etc.
Lightning Network & Liquid Network
They're the most famous L2 solutions for Bitcoin. They provide improved scalability, enhanced programmability, inherited high-level security, and the possibility of fast microtransactions with low commissions. This makes BTC an excellent means of payment, even in everyday life.
Why should platforms implement L2 networks?
Platforms in the world of cryptocurrencies follow current trends and strive to improve the transaction system for their users. The introduction of L2 Networks is becoming an integral part of this endeavor. These networks allow the transfer of top cryptocurrencies efficiently and inexpensively and provide higher performance.
Recently, the BetFury platform added Arbitrum and Optimism L2 Networks to its arsenal. This means that users can enjoy the benefits of scaling and more affordable transactions when playing on this platform. BetFury strives to keep up by providing the best tools to manage your assets. Try new Networks and try your luck by betting on new ARB and OP tokens.
➡️ Play Games With ARB & OP Tokens
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