A Layer Two blockchain is a secondary protocol or framework built atop an existing base-layer blockchain to improve its scalability and transaction throughput. These solutions process transactions off the main chain and periodically submit aggregated proofs or summaries back to the Layer One. This design reduces the burden on the main chain, allowing it to handle more operations without sacrificing decentralization or security. Examples include rollups and state channels.
Context
Layer Two blockchains are consistently a prominent subject in crypto news, particularly concerning efforts to scale popular networks like Ethereum. Debates often center on the trade-offs between different Layer Two architectures, such as optimistic versus zero-knowledge rollups, regarding security assumptions and efficiency. A critical future development involves greater user adoption and seamless integration of these solutions into the broader decentralized application ecosystem. Their continued evolution is vital for supporting mass market use of digital assets.
This RWA-focused Layer 2, built on MANTRA, introduces a sovereign data solution for commercial real estate derivatives, unlocking immense illiquid capital.
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