What is Blockchain Layer 2

Blockchain Layer 2 is currently starting to develop as an evolution of the Blockchain technology itself.

Since it surfaced, many products have been integrated using blockchain as a technical solution. But unfortunately only some of them are successful, and the rest have different limitations.

As is the case in terms of transaction processing, root blockchains like Ethereum are currently only capable of processing 15-20 transactions per second.

As for other problems related to privacy to costs, but Blockchain Layer 2 so far has turned out to be the solution.

What is Layer 2 Blockchain Technology?

Layer 2 blockchains are often referred to as “off-chain” solutions. Its main goal is to increase the transaction capacity of the blockchain while maintaining the decentralized benefits of a distributed protocol.

Solving scalability issues will significantly help blockchain mainstream adoption.

To build a good blockchain ecosystem, we need some things in the architecture to balance the needs of security, decentralization, and scalability.

This technology system is a system that connects Ethereum, and relies on Ethereum as a basic layer of security and finality.

In other words, instead of changing the Ethereum base, it is better to add Smart Contracts to the main blockchain protocol that interacts with off-chain activities.

How Does Blockchain Layer 2 Technology Work?

Layer 2 platforms and protocols process data in a way that reduces the load normally borne by the base layer (root chain).

By moving transactions from the main chain to a layer 2 platform, blockchain networks can handle much higher transaction throughput.

It enables users to massively reduce data processing on the blockchain by running off-chain computations.

The main benefit of Layer 2 is that it minimizes the amount of data stored at the base layer.

Fetching transactions from the base layer, while still tied to them, will free up processing resources to do other things while still getting the benefits of security and decentralization.

Future Blockchain Solution

Blockchain Layer 2 is actually just an early evolution of Blockchain technology. Because he can develop again into layer 3 (Layer 3) and so on.

These technologies create blockchain systems that can be used and adapted to whatever industry they are applied to. It can even compete with centralized systems like Visa.

Vitalik Buterin as the founder of Ethereum also has the same opinion, he even thinks that i technologies will eventually multiply with each other and increase Ethereum’s scalability by a factor of hundreds.