As the popularity of cryptocurrencies grows, so does the desire for faster and less expensive transactions. Layer 2 (L2) solutions enable blockchain networks to be scaled, transaction speeds increased, and costs reduced. This post will look at the top 5 Layer 2 coins to invest.
Layer 2 (L2) is a collective term used to describe a specific set of scaling solutions built on top of a blockchain, commonly known as a layer-1 network, that extends the functionality of the underlying blockchain while inheriting its security guarantees. Layer 2 is a separate blockchain that handles transactions off the main blockchain while still taking advantage of its robust decentralized security. Layer 2 solutions are designed to reduce bottlenecks with scaling and data and offer faster and cheaper transactions while maintaining the security and decentralization of the underlying blockchain.
Top 5 Layer 2 Coins
Layer 2 solutions can be viewed as one solution to the scalability challenge, allowing for fast and scalable execution while maintaining decentralization and security.
Polygon (MATIC)
Polygon, formerly Matic Network, is an Ethereum Layer 2 scaling solution. It is intended to deliver faster and cheaper transactions while retaining the Ethereum network’s security and decentralization. With a TVL of about $10 billion, Polygon has become one of the most popular Layer 2 solutions. It is regarded as the most popular mainstream Layer 2 solution for Ethereum.
Arbitrum
Arbitrum is an Ethereum Layer 2 scaling solution that leverages optimistic rollups to boost transaction throughput and lower fees. It is intended to be developer-friendly, featuring Solidity smart contracts compatibility and a thriving DeFi community. Arbitrum is often regarded as the most effective Layer 2 option for developers.
Optimism
Another popular rollup scaling method for the Ethereum ecosystem is Optimism. It is intended to be Ethereum-compatible, with support for smart contracts and a thriving DeFi ecosystem. With over $1 billion in value secured on the network, Optimism has the largest and most active DeFi ecosystem among Layer 2 systems. It is regarded as the most suitable Layer 2 solution for Ethereum compatibility.
StarkEx
StarkEx is an Ethereum Layer 2 scaling solution that leverages zk-rollups to boost transaction throughput and lower fees. It is intended to be high-performance, with up to 9,000 transactions per second support. StarkEx is widely regarded as the most effective Layer 2 solution for high performance.
zkSync
zkSync is a Layer 2 scaling solution for Ethereum that uses zk-rollups to increase transaction throughput and improve security. It is designed to be secure, with support for zero-knowledge proofs and a focus on privacy. zkSync is considered the best Layer 2 solution for security.
Investing in Layer 2 cryptocurrencies can be an excellent method to capitalize on the increasing desire for faster and cheaper transactions. However, before investing in any cryptocurrency, you should conduct your own research and understand the hazards involved.
Conclusion
Polygon (MATIC), Arbitrum, Optimism, StarkEx, and zkSync are the top 5 Layer 2 coins to invest in. These Layer 2 technologies enable blockchain networks to be scaled, transaction speeds increased, and fees reduced. By investing in these coins, you may capitalize on the growing demand for faster and cheaper transactions while potentially profiting. However, before investing in any cryptocurrency, you should conduct your own research and understand the hazards involved.