Mapping out layer 2 systems – Drawing to understand Rollups projects being developed on layer 2. We will focus on two main technologies Rollup and sidechain which are divided into 3 parts.
In the era of DeFi boom, the limitations of the Ethereum network are more obvious than ever. Long processing speed, exorbitant cost, etc. all are greatly affecting the user experience.
As a matter of fact, solutions to overcome the disadvantages of Ethereum are increasingly noticed and one of the outstanding solutions is layer 2.
Layer 2 is a solution to reduce transaction processing pressure on the original blockchain by processing transactions on a second layer, thereby improving speed and minimizing transaction costs.
Current main layer 2 solutions include Rollups, Plasma, Channels, and Sidechains. Each solution will provide a different throughput and have different advantages and disadvantages.
Below the author will list the projects being developed on layer 2 along with the types of bridges being developed on them.
Read more: Layer 2 – The key to solving problems on Ethereum
zkSync is a protocol for scaling payments & smart contracts on Ethereum. Product of zkSync: zkWallet.
1. Bridge
2. Projects that use zkSync
Developed:
Developing:
The scaling project uses zkRollup for Exchange and Payment Protocol. Loopring products: Loopring Exchange & Mobile wallet.
1. Projects using Loopring
Developed:
Developing
There are currently two prominent projects using Optimistic Rollups: Optimism and Arbitrum.
This is a layer 2 project for Ethereum using an Optimistic Rollups solution. You can see more about Optimistic here.
1. Bridge
One limitation is that the current solution requires a long time (about 7 days) to withdraw assets. However, recently Optimism announced a partnership with MakerDAO and created a DAI bridge, allowing for fast asset withdrawal.
2. Hop
An exchange that helps transfer assets between networks using rollups and from layer 1 to layer 2 using rollups currently, the testnet platform supports Ethereum, Arbitrum, Optimism and xDAI.
3. Projects using Optimism:
Is a layer 2 project for Ethereum using an Optimistic Rollups solution. Currently, the project is still in the testnet stage.
1. Projects using Optimism
Above is information about the ecosystem of Rollup technology. In part 2 and part 3, we will analyze the ecosystem of projects using Sidechain technology.
If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.
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