A Layer-2 protocol is a secondary framework or technology built on top of an existing blockchain, known as Layer-1, to enhance its scalability and efficiency. These protocols process transactions off the main chain, then periodically settle the aggregated results back onto the Layer-1 blockchain. Examples include optimistic rollups, zero-knowledge rollups, and sidechains, all designed to alleviate congestion and reduce transaction costs. Layer-2 solutions enable decentralized applications to handle a greater volume of users and operations.
Context
Layer-2 protocols are a constant subject in crypto news, central to the discourse on blockchain scalability and the future of decentralized finance. Their ongoing development addresses the limitations of foundational blockchains, such as high gas fees and slow transaction speeds. The competition among different Layer-2 solutions focuses on security, decentralization, and developer experience. As these protocols evolve, they are expected to facilitate broader adoption of blockchain technology for everyday use cases.
The $100M grant fast-tracks the "Economy of Things" by provisioning AI-enabled IoT devices with DLT-based, autonomous transacting capabilities for superior asset utilization.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
