It’s no secret that blockchain technology is flourishing all over the world. Decentralized and secure, the blockchain is used for a wide range of uses, from transactions to gaming. However, with the demand rising by the day, scalability has become a major issue. Ethereum and Bitcoin are still unable to satisfy the influx of transactions on a daily basis.
This is where Layer 2 solutions come in. Layer 1, or the main chain, is designed to be safe and decentralized, but cannot process more than 15 transactions per second in the case of Ethereum. To eliminate this problem, we have an additional Layer 2 that makes blockchain transactions just as safe, while still being relatively inexpensive.
What is Layer 2?
Layer 2 is essentially a protocol or a framework that is built atop the existing blockchain system. It refers to off-chain scaling solutions that would catalyze blockchain transactions. With Layer 2, transactions can be processed off the chain, and the rollup of several transactions can be bundled together onto Layer 1. With this, the gas fees required for conducting the transaction is divided amongst the users, making the blockchain more affordable and cheaper. And security, too, is state-of-the-art, making this the go to.
NFT gaming marketplaces have already begun using Layer 2 solutions in order to meet the demands of a rising user base. Polygon is one of the most popular scaling solutions for Ethereum-based NFT games, and provides users with faster transaction times and cheaper gas fees. You can imagine how this would revolutionize the gaming industry.
Layer 2 solutions are making the blockchain more accessible to thousands of people worldwide. With cheaper fees and quicker transaction times, these solutions are in the process of perfecting blockchain technology by integrating the decentralization and security of Layer 1 with the scalability of Layer 2.