Layer-2
Layer 2 refers to secondary frameworks built on top of a blockchain's base layer (Layer 1) to enhance scalability and efficiency. By processing transactions off-chain and then settling them on the main chain, Layer 2 solutions reduce congestion, lower fees, and improve transaction speeds, making blockchain technology more accessible and user-friendly. Explore the table on this page that lists L2 projects, complete with descriptions and their interest levels as determined by the CryptoTotem algorithm. Learn more ↓
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| Project name | Description | Interest lvl | ||
|---|---|---|---|---|
 | Base | Description Base is a low-cost, secure Ethereum L2 designed to bring the next billion users on-chain. | Interest lvl | Add to Watchlist |
 | Celo (CELO) | Description Celo is the core utility, reserve, staking, and governance asset for the Celo platform. The platform aims to make financial tools borderless, easy to use, and a ... | Interest lvl | Add to Watchlist |
 | Optimism (OP) | Description Optimism is focused on the development of optimistic rollups, which are scaling layers that aggregate transactions above the base Ethereum layer. The idea is th ... | Interest lvl | Add to Watchlist |
 | Polygon (POL) | Description Polygon (POL) is a protocol and a framework for building and connecting Ethereum-compatible blockchain networks. Polygon 2.0 is a concrete vision to build the V ... | Interest lvl | Add to Watchlist |
 | ZkSync (ZK) | Description zkSync is a trustless protocol for scalable low-cost payments on Ethereum, powered by zkRollup technology. It uses zero-knowledge proofs and on-chain data avail ... | Interest lvl | Add to Watchlist |
 | Arbitrum | Description Arbitrum is a layer-2 solution project designed to enhance Ethereum smart contracts in terms of speed scalability while adding additional privacy features to bo ... | Interest lvl | Add to Watchlist |
 | Scroll (SCR) | Description Scroll is a security-focused scaling solution for Ethereum, using innovations in scaling design and zero knowledge proofs to build a new layer on Ethereum. The ... | Interest lvl | Add to Watchlist |
 | StarkNet (STRK) | Description StarkNet is a permissionless decentralized ZK-Rollup. It operates as an L2 network over Ethereum and solves the inherent problems of blockchains – scalability ... | Interest lvl | Add to Watchlist |
 | Immutable X (IMX) | Description Immutable X is Ethereum’s first zero-knowledge rollup (zk-rollup) scaling protocol for gas-free NFT minting and trading, built in partnership with StarkWare. | Interest lvl | Add to Watchlist |
 | BitDAO (BIT) | Description BitDAO aims to use its significant financial and talent resources to foster and invest in innovation, collaboration, and growth across DeFi. | Interest lvl | Add to Watchlist |
 | Humanity Protocol | Description Humanity Protocol is a network aimed at providing sybil-resistant blockchain solutions to authenticate the first billion users on the web. It offers developers ... | Interest lvl | Add to Watchlist |
 | Zora | Description Zora is a scalable Layer 2 built on Ethereum, prioritizes NFTs and media over traditional DeFi applications, enabling fast and cost-efficient transactions. The ... | Interest lvl | Add to Watchlist |
 | Swell (SWELL) | Description Swell Network is a permissionless, non-custodial, and liquid ETH staking protocol that is built for stakers, node operators, and the Ethereum ecosystem. A commu ... | Interest lvl | Add to Watchlist |
 | MegaETH | Description MegaETH is an EVM-compatible blockchain that brings Web2-level real-time performance to the crypto world for the first time. MegaETH goal is to push the perform ... | Interest lvl | Add to Watchlist |
 | Bsquared Network | Description Bsquared (B²) Network is an EVM-compatible Rollup built on zero-knowledge proof verification commitment on the Bitcoin blockchain. Rollup data and zk proof ver ... | Interest lvl | Add to Watchlist |
 | Movement Labs | Description Movement Labs is a blockchain network that prioritizes community involvement, characterized by its transparent tokenomics, minimal staking requirements aimed at ... | Interest lvl | Add to Watchlist |
 | AEVO (AEVO) | Description Aevo is a decentralized derivatives exchange platform, focused on options and perpetual trading. The DEX runs on Aevo L2, an Ethereum roll-up based on the OP St ... | Interest lvl | Add to Watchlist |
 | Blast | Description Blast is the L2 that helps you earn. Blast is the first L2 that incorporates native yield. Your balance on Blast compounds automatically.Funding Rou ... | Interest lvl | Add to Watchlist |
 | Neon EVM (NEON) | Description Neon Labs is an Ethereum virtual machine on Solana that enables dApp developers to use Ethereum tooling to scale and get access to liquidity on Solana. | Interest lvl | Add to Watchlist |
 | Taiko (TAIKO) | Description Taiko is an Ethereum Layer 2 scaling solution designed to be the premier rollup for Ethereum. It aims to become the default scaling choice for developers and us ... | Interest lvl | Add to Watchlist |
 | ZkLink (ZKL) | Description zkLink is a trading-focused multi-chain L2 network with unified liquidity secured by ZK-Rollups. zkLink ecosystem connects various L1 chains and L2 networks tha ... | Interest lvl | Add to Watchlist |
 | Manta Network (MANTA) | Description Manta Network is a decentralized project that delivers plug-and-play privacy for the entire DeFi stack. Built as a layer-1 protocol, the project leverages zkSNA ... | Interest lvl | Add to Watchlist |
 | DFYN | Description Dfyn is a multichain AMM DEX currently functional on the Polygon network. Dfyn nodes on various chains act as liquidity entry and exit points into the cross-cha ... | Interest lvl | Add to Watchlist |
 | Celer Network (CELR) | Description Celer Network is a leading layer-2 scaling platform that enables fast, easy and secure off-chain transactions for not only payment transactions, but also genera ... | Interest lvl | Add to Watchlist |
 | METIS | Description We are helping create their own decentralized businesses on blockchain. | Interest lvl | Add to Watchlist |
 | Injective Protocol (INJ) | Description The Universal Layer-2 DeFi Protocol for Cross-Chain Derivatives Trading. | Interest lvl | Add to Watchlist |
 | ZKCHAOS (CHAOS) | Description ZKCHAOS is a layer2-based anonymous transaction protocol and a fair game platform, which is built to enhance privacy for all kinds of cryptocurrency. | Interest lvl | Add to Watchlist |
 | Bitcoin Proxy Protocol (PRXY) | Description BTC Proxy Protocol - Layer-2 Interoperability of BTC and DeFi. | Interest lvl | Add to Watchlist |
 | APYSwap (APY) | Description APYSwap is a protocol for the decentralised exchange of shares of Tokenized Vaults. It achieves this through the creation of a Layer 2 blockchain where users ca ... | Interest lvl | Add to Watchlist |
 | Superseed (SUPR) | Description Superseed is a network that transforms Ethereum scaling into self-repaying loans. | Interest lvl | Add to Watchlist |
 | Reya Labs (Voltz) | Description Reya Network stands trading-optimized modular Layer 2 (L2) solution. Its innovative design fosters unparalleled liquidity, capital efficiency, and performance f ... | Interest lvl | Add to Watchlist |
 | Moonveil (MORE) | Description Moonveil Studio is comprised of a team of seasoned professionals with extensive expertise in the gaming industry. With the power of cutting-edge technologies, M ... | Interest lvl | Add to Watchlist |
 | Hyperlock Finance (HYPER) | Description Yield & metagovernance protocol built on ThrusterFi and optimized for Blast. | Interest lvl | Add to Watchlist |
 | Hemi Network | Description The Hemi network represents a different approach to Layer 2 scaling, treating Bitcoin and Ethereum as components of a supernetwork. This modular protocol is des ... | Interest lvl | Add to Watchlist |
 | Degen Distillery (DRINK) | Description Degen Distillery is the one of the world’s spirits brands, has co-created in collaboration with Brewdog and Google. By tapping into a global community of risk ... | Interest lvl | Add to Watchlist |
 | B3 fun | Description B3 is a horizontally scaled gaming ecosystem built on the Base blockchain. Its rollup network settles on Base, ensuring B3 transactions inherit the security of ... | Interest lvl | Add to Watchlist |
 | Balance (EPT) | Description Balance is a comprehensive Web3 gaming ecosystem offering convenient game asset management services. Through Balance Wallet and Balance Passport, users can effo ... | Interest lvl | Add to Watchlist |
 | Astria | Description Astria replaces centralized sequencers, allowing many rollups to share a single decentralized network of sequencers that’s simple and permissionless to join. ... | Interest lvl | Add to Watchlist |
 | Gull Network (GULL) | Description Gull Network is the Layer 3 solution for token launch powered by Manta Network, revolutionising DeFi with an open and decentralized platform where anyone can op ... | Interest lvl | Add to Watchlist |
 | Pencils Protocol (DAPP) | Description Pencils Protocol is the next-gen decentralized platform that offers auction services for blockchain native assets and RWAs, along with unified and leveraged yie ... | Interest lvl | Add to Watchlist |
 | Saakuru (SKR) | Description Saakuru is a consumer-centric Layer-2 protocol with zero transaction fees and unique multi-purpose tokenomics. | Interest lvl | Add to Watchlist |
 | Velar (VELAR) | Description Velar Protocol is a DeFi platform tailored specifically for Bitcoin, empowering users to tap into the vast liquidity locked within the Bitcoin ecosystem. Inspir ... | Interest lvl | Add to Watchlist |
 | Mode (MODE) | Description Mode is a Layer-2 (L2) blockchain ecosystem that stands out for its growth-oriented design. This project focuses on incentivizing and rewarding developers, user ... | Interest lvl | Add to Watchlist |
 | Inspect (INSP) | Description Inspect is the pulse of Web3, a cutting-edge layer 2 solution that empowers users within the X (Twitter) and other social ecosystems with indispensable tools an ... | Interest lvl | Add to Watchlist |
 | Kroma | Description Kroma is a rollup-based Ethereum Layer 2 (L2) blockchain. Experience the Full Spectrum of Scaled Ethereum | Kroma is a Universal ZK Rollup on Ethereum. | Interest lvl | Add to Watchlist |
 | Mantle (MNT) | Description Mantle is the first modular layer-2 blockchain, combining hyperscale performance with security from Ethereum. Mantle powers whatever builders can dream. | Interest lvl | Add to Watchlist |
 | Across Protocol (ACX) | Description Across is a cross-chain bridge for L2s and rollups secured by UMA's optimistic oracle. It is optimized for capital efficiency with a single liquidity pool, a co ... | Interest lvl | Add to Watchlist |
 | Myria | Description Myria is a leading Ethereum Layer 2 scaling solution, purpose-built to scale NFTs, blockchain gaming, and more. | Interest lvl | Add to Watchlist |
 | AltLayer (ALT) | Description AltLayer Network is a system of highly scalable application-dedicated execution layers that derive security from an underlying L1/L2. It is designed as a modula ... | Interest lvl | Add to Watchlist |
 | zkLend (ZEND) | Description ZkLend is an L2 money-market protocol built on StarkNet, combining zk-rollup scalability, superior transaction speed, and cost-savings with Ethereum’s securit ... | Interest lvl | Add to Watchlist |
What is Layer 2 Blockchains
Layer 2 Solutions or L2 blockchains – these are infrastructure solutions in the form of applications and various software built on top of basic blockchains. They can process large volumes of transactions and reduce the load on the main network…
Most of the leading DeFi or NFT protocols in the ecosystem support Layer 2 solutions, and project developers are working on integrating them. Some new services are already using Layer 2 solutions at launch, skipping the development phase on the Ethereum base network.
The reason for the popularity Layer 2 solutions is simple: everything that users can do on Ethereum can be done with L2 solutions, spending hundreds of times less on network commissions. At the same time, the reason for the increased confidence in the technology lies in the unconditional support and advertising by the Ethereum Foundation and Vitalik Buterin personally. Vitalik quite often writes about the development of L2 solutions, which makes additional advertising for the projects. For example, he most often speaks positively about one particular project – Polygon.
How it works
Layer 2 blockchains are an important complement to the underlying L1 blockchain, providing increased scalability and performance. They utilize a variety of technologies and methods to achieve these goals and provide a wide range of options for developers and users.
The fact is that the above challenges are key needs of basic Layer 1 blockchain systems. Also, this problem is summarized in the term “Blockchain Scalability Trilemma”. It consists of the difficulty of creating a network that is simultaneously fast, decentralized and secure. Therefore, developers often have to select and optimize a maximum of two components out of three.
The architecture of the first blockchains, such as Bitcoin or Ethereum, is not designed from the outset to handle huge flows of users and transactions. Therefore, these ecosystems have the problem of low throughput. For example, BTC has 5-7 transactions per second (TPS), while ETH has an average of 15 TPS.
Example L2 blockchain solutions
- Lightning Network: Is a Bitcoin scaling system that is one of the solutions to the problem of its limited throughput. It allows for almost instant transfers of coins with minimal fees.
- Optimistic Rollups: To group multiple transactions together, then process and verify them on the core blockchain.
- Plasma: Framework for creating nested blockchains that are children of the main Ethereum blockchain. It processes transactions on child chains, with the results periodically committed to the main chain.
- zkSync: Enables the Zero-Knowledge Rollup mechanics. This solution allows the Ethereum network to be highly scalable while maintaining its security.
Ultimately, L2 solutions can provide a partial but significant solve to the problems of low bandwidth and high fund transfer fees without breaking the underlying blockchain code. And a key benefit of Layers 2 is the ability to transfer digital assets between L1 blockchain participants and L2 participants, which can be in the form of a separate protocol or blockchain.
Let’s consider several Layer 2 solutions for the Ethereum system.
Despite its low speed, ETH is the most heavily loaded resource for decentralized applications. Its ecosystem hosts the lion’s share of projects in the areas of DeFi NFTs and many others. Therefore, the problem of scalability is especially acute for Ethereum.
From a technical point of view, the classification of L2 solutions is complex and multifaceted. For a basic understanding, we can distinguish three groups:
- Optimisitc Rollups, among the most recognizable protocols of which are Polygon, Optimism and Arbitrum.
- The second group includes zkRollups with Zero knowledge (ZK) technology. The most popular projects are Loopring (LRC), zkSync and the Aztec anonymous transaction network.
- The third category includes those projects that use network sidechains and various combinations of several technologies and networks. For example, the Parastate protocol works by communicating with the Polkadot blockchain and allows the use of the popular languages Rust, Golang and C++ for application development.
Another way to increase the throughput of a blockchain is horizontal data partitioning or sharding. This is the division of a data set into multiple databases. Blockchain sharding is the division of a single chain into individual independent segments called shards. Each shard contains a unique set of smart contracts and account balances. Each shard is assigned a node for validation, thus distributing the load across several validators.
The main feature of sharding is the transition from a system where a node calculates every operation to a model where it only performs some calculations. This allows for parallel processing of different tasks. This division of the blockchain into more manageable segments increases throughput. As a result, sharding helps to avoid network congestion and reduce transaction fees.
It is worth noting that sidechains may not always be a direct L2 solution. For example, in Cosmos or Polkadot. In these cases, while Cosmos uses its own security system, Polkadot relies on the “parent” blockchain for security.
Advantages of Layer 2
Key Features of Layer 2 Blockchains:
- Scalability: One of the main aspects of Layer 2 blockchains is the ability to increase the number of transactions processed without having to change the underlying L1 blockchain protocol. This is achieved by moving some of the transactions to Layer 2.
- Performance: Layer 2 blockchains offer faster transaction processing speeds and lower transaction fees. This makes them more efficient for microtransactions and other performance-intensive operations.
- Technology diversity: There are several different technologies and methods that can be used in Layer 2 blockchains, including sidechains, state channels, plasma or rollups. Each of these technologies has different characteristics and applications in different scenarios.
Conclusion
Layer 2 solutions play an important role in the development of the blockchain industry, providing the necessary scalability and performance to support more users and complex applications. As these technologies mature, we can expect further improvements in efficiency and cost reductions not only for Ethereum, but for most other blockchain platforms as well.