Once again this year, we would like to sweeten the Advent season for our readers with an Advent calendar. In a slightly different form, each door contains a “knowledge bomb”, which will be supplemented with an extraordinary special prize on Christmas Day.
Behind the 9th door is the term “Layer 2”. To enter the giveaway on the 24th, simply take part in the polls and like the respective Twitter posts.
Layer 2
So-called Layer 2 solutions are dedicated blockchains that extend a Layer 1 blockchain such as Bitcoin or Ethereum. Their main goal here is to solve the scaling deficit of the main chain without compromising on decentralization and security (blockchain trilemma). Thus, the Layer 2 solution can significantly increase the transactions processed per second (TPS) and counteract expensive transaction fees. Common names for Layer 2 solutions include Polygon, Arbitrum, and Optimism.
In the course of this year, a lot happened in the area of Layer 2. Not only Arbitrum experienced a significant update with “Nitro”. Competitor Optimism also made significant gains after launching a token incentive program. Further driven by the high transaction fees on Layer 1 blockchains, many users took refuge in the L2 ecosystem. Deposited funds doubled and at times more individual wallet addresses trade on Layer 2s than on Ethereum itself.
