Hey my community members hope you are all doing well by the grace of creator. It will be our first discussion on blockchain and technology work.
Let we start from layer 2 of Ethereum.
Every body who have some how now of crypto must have a knowledge about Ethereum which is ranked globally at number 2 by marketcap. It is much more specified and valueable coin like Bitcoin.
Ethereum is one of the most popular blockchains in the world. It powers thousands of decentralized applications (dApps), NFTs, and DeFi platforms. The one problem which faces every users is its High gas fees and limited transaction speeds made it difficult for small users to participate.
To solve this problem, developers introduced a concept called scaling and this is where "Layer 2 solutions and rollups" come in.
Firslty, we have to know what is Ethereum Scaling?
Ethereum scaling means improving the network’s performance so it can handle more users and more transactions at a lower cost. The main idea is to move most of the transaction work away from the Ethereum main chain (Layer 1) to faster, cheaper systems built on top of it which is Layer 2.
Major apps like Uniswap, Aave, and even social media protocols are going live on Layer 2.
What Are Layer 2 Solutions?
Layer 2 solutions are separate blockchains or protocols that sit on top of Ethereum. They handle transactions off-chain and later report the results back to Ethereum. This reduces congestion on the main Ethereum network and lowers transaction costs.It is considered very helpful for Ethereum users. Layer 2 still relies on Ethereum for security, which means your funds are safe even though transactions are processed elsewhere.
What Are Rollups?
Rollups are specific type of Layer 2 solution that manage bundle hundreds of transactions into a single transaction. Instead of recording every single transaction on Ethereum, a rollup just submits a summary or proof. This saves time, space, and money. It proves very effecient way for decentralization and even making it smarter in blockchain Era.
It creates Aura for Ethereum Users.
If we are expecting it momentous push in Ethereum Blockchain It must be truth.
Layer 2 solutions and rollups are very important for the future of Ethereum. They make it possible and easy way for people to use dApps, trade tokens, and mint NFTs without paying high gas fees. They also allow Ethereum to grow and support millions of users without facing slow or expensive transactions.
Could you think it more Valuable for Ehereum Users.
I hope you found this content very helpful. If you have trouble understanding, please ask in the comments.
Let’s discuss in the comments!