Layer 2 is a term used for solutions that help scale applications by processing transactions on the Ethereum mainnet (layer 1). So what are layer 2 rollups and why are they important in blockchain? Let's find out by reading this article.
What are Layer 2s?
Layer 2 refers to secondary frameworks or protocols built on top of existing blockchain systems. The main goal of these protocols is to address the transaction speed and scaling difficulties faced by major cryptocurrency networks.
The goal of layer 2 is to help currencies or applications at blockchain scale. The second layer takes over all transactions that take place on the Ethereum mainnet (layer 1) to take advantage of the strong decentralized security model used by the mainnet. Since transactions are "sourced" to the second layer, they end up being faster, thus reducing transaction costs and improving the user experience for multiple DApps.
What are Layer 2s rollups?
Rollup is a layer 2 scaling solution that performs transaction operations outside the main Ethereum blockchain, but still publishes transaction data to layer 1. Aggregation is protected by the same layer 1 security measures, given that transaction data is at layer 1. In fact, this is a defined function that rollup provides to the user.
Layer 2 summaries have three properties:
- Transactions are executed outside of layer 1 (reduced gas costs)
- Data and transaction proofs at layer 1 (maintaining security)
- Aggregated smart contracts discovered at layer 1 can enforce correct transactions at layer 2 by using transaction data stored at layer 1
Why are they important in blockchain?
Layer 2 solutions are important because they allow scalability and increased throughput while still maintaining the integrity of the Ethereum blockchain, allowing for full decentralization, transparency, and security, while also reducing carbon footprint (less of gas, which means less energy is used, which equates to less carbon.)
Even though the Ethereum blockchain is the most widely used blockchain and arguably the most secure, that doesn't mean it doesn't have some drawbacks. Ethereum mainnet is known for slow transaction times (13 transactions per second) and expensive gas fees. Layer 2 is built on top of the Ethereum blockchain to ensure transactions are secure, fast and scalable.
I hope this article will help you to learn what are Layer 2s rollups and why are they important in blockchain. There are currently several layer 2 solutions aimed at solving the scaling problem of Ethereum. There are also hybrid solutions designed to improve network scalability by combining these technologies.
