Layer 2 Solutions for Scaling Blockchain Networks: A Comparative Analysis

I must confess that the rapid growth that the world of blockchain have really witnessed is something that we are blessed with. It has been able to offer a whole lot of opportunities beyond what we can ever imagine of and that cut across aspect like industries, the financial sector and even the supply management aspect also. The adoption is spreading really fast and getting much more better than before at least years ago.

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Of course we are not where we are years ago and that is really evident. In fact, I have come to discover that the limitations that the Blockchain is facing right now is because of the adoption that has increases and that limitation is scalability. Among all these challenges, one of the solutions that have been given out by the Blockchain technology is the aspect of layer 2 solutions which I will be talking about today.

Now this is it, when we talk about layer 2 solutions, I am talking about the aspect of using secondary frameworks to help build the primary blockchain that we are existing on. Of course these types of solution is designed in a way whereby it can help to handle a whole lot of transactions at the same time. Layer 2 works in a way whereby it helps to make sure transactions are carried out in high volume and not only that but also at a very reduced fees.

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When we talk about layer 2 solutions, there are types which I will like to talk about. The first is we have the state channels and it works in a way whereby users will be able to carry out their transactions using a channel between both of two parties. Finding a perfect example for this is the aspect of the bitcoin lighting network and also the Ethereum raiden network also. Of course there are a whole lot of advantages it offers as increasing the transaction speed and also making it to be carried out on low fees as compared to others.

The other advantage is in the aspect of side chains. Side chains works in a way whereby it makes a particular Blockchain to work independently. But even if it is been independent, it is connected to something called the main chain and which I want to talk about. Those main chains will help assets to be moved and helped transactions to be carried out with easy. Perfect example to back this type of layer 2 solutions are polygon, loom networks and many more. This is a common and most use type of layer 2 solutions because it offer flexibility and compatibility for dApps.

Even though there might be challenges right now as in the world of layer 2 which I want to discuss about but I strongly believe it is just a matter of time before it is been settled. The future is definitely bright as layer 2 solutions will go a long way in the sustainability of the Blockchain world actually.