Layer Two protocols are scaling solutions built on top of existing blockchain networks, such as Ethereum, to improve transaction speed and reduce costs. These protocols process transactions off the main chain, or Layer One, before settling them back onto the main chain in a consolidated manner. Examples include rollups, state channels, and sidechains, each employing distinct mechanisms to enhance throughput and efficiency. They are essential for enabling wider adoption of decentralized applications.
Context
Layer Two protocols are a central focus in the ongoing efforts to scale blockchain networks, particularly Ethereum, to accommodate increasing demand and reduce network congestion. News frequently reports on advancements, deployments, and comparative analyses of different Layer Two solutions, highlighting their role in the broader development of the decentralized internet. The success of these protocols is critical for the long-term viability and mainstream acceptance of decentralized applications.
A new hardware-independent metric for ZK/FHE performance standardizes cryptographic evaluation, accelerating Layer 2 development and privacy primitives.
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