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There is more than $ 1 billion locked in Ethereum Layer 2 scaling solutions

Second-layer scaling solutions designed to counter network congestion on Ethereum are on the rise, with more than $ 1 billion locked in scaling protocols, according to layer two ecosystem tracker L2Beat. Topping the list is crypto exchange dYdX, with $ 285.6 million locked.

Scaling solutions allow decentralized applications (dapps) to avoid network congestion, using a variety of different technologies. L2Beat tracks layer two of accumulators, a type of scaling solution that sits on top of the Ethereum blockchain, processing a series of transactions in one batch before sending them to the main chain as a single transaction.

See more: Ethereum’s “London” update closer and closer

The different versions of the rollups, including Optimistic, Plasma, Validium and ZK-rollups, group and verify this series of transactions in different ways; Of the top ten protocols by locked value, half are based on ZK accruals, totaling $ 547.56 million locked.

The key difference between the different types of accumulation is whether they keep the data on or off the chain, and whether they employ fraud tests (which present evidence that a block was wrong) or validity tests (which present evidence that a block It was right).

ZK rollup packages use validity tests with data stored off-chain, while Validium uses validity tests with data stored off-chain. Meanwhile, the optimistic summaries use evidence of fraud with data stored in the chain; Plasma and State Pools use fraud tests with data that is kept off-chain.

A scaling solution that L2Beat no tracks is Polygon, which the site authors define as a proof of stake sidechain (essentially a clone of Ethereum’s main chain, where assets and transactions are processed and moved, and the main one can be called back chain).

See more: On August 4 the update of the main network of Ethereum of London would be made

L2Beat defines layer two as “a chain that derives all or part of its security from L1 Ethereum so that users do not have to rely on the honesty of L2 validators for the security of their funds.”

Future of scaling on Ethereum

The Ethereum network is in the process of switching to Ethereum 2.0, which will bring with it a new consensus mechanism, proof of stake, and a new scaling mechanism, fragmentation. Fragmentation involves breaking large amounts of data into smaller pieces. However, there is still a place for stacks as a scaling mechanism, with the Ethereum network potentially capable of reaching an estimated 100,000 transactions per second by combining fragmentation with stacks and other scaling solutions.

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

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