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Layer-2

ADOPTION OF LAYER-2 COULD ACTIVATE THE NEXT CRYPTO CLIMAX

An unknown Redditor has created a data-driven prediction that the next major stage of development in the blockchain phase will be in layer-2 solutions, primarily on Ethereum.

The post made on May 22 states that “We’re at a turning point” where the industry is moving away from bridging between L1 blockchains toward L2s which are “right out of the gate, more secure and decentralized than alt-L1s and are built to use sound money on a credibly neutral platform:”

“L2 adoption is happening now, even if it is slow and in bursts. Behind the scenes, L2’s are improving reliability, decreasing fees, and increasing accessibility. L2’s are still building and improving, and that’s fantastic.”

RELATED: Boba Network layer-2 solution deployment is the main reason behind OMG network’s new price rally

An L2 scaling solution exploits the security of an L1 chain like Ethereum and lightens traffic on it by rolling up a number of transactions into a single package to be established at once.

Other L1 chains like Solana which claims fairly low cost and fast transactions have gathered backing from users turned off by high fees.

The regular Solana (SOL) transactions cost about $0.0025, while Ether (ETH) transactions cost about $1.30. In spite of that wild differences, the demand for Ethereum block space has stayed strongly dominant as its $73.89 billion total value locked (TVL) beats Solana’s $4.24 billion according to research made by blockchain tracker DefiLlama. Solana has been hit with issues pertaining to reliability recently.

Arbitrum is the biggest L2 on Ethereum with $2.65 billion in TVL, according to the L2 beat. The whole Ethereum L2 ecosystem has a TVL of $4.77 billion.

About Godwin

Godwin is a multi-faceted writer. He covers the latest and most significant news in the crypto industry for Newsbsc. Aside from his work here, he writes exceptional SEO optimized web contents for other websites in different sectors.

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