As we head into March, the Ethereum Layer 2 space continues to see strong demand: Arbitro, one of the largest solutions, is seeing renewed exponential growth across all sub-sectors of the ecosystem.
While the foundational blockchains (Layer One or L1 in crypto parlance) are still the foundation of the Web3 landscape, the technology built on them (Layer Two or L2 chains) is exploding. Arbitrum has recently outperformed the Ethereum chain on which it is based in terms of the total number of transactions processed.
Arbitrum is an L2 Ethereum-focused scaling solution that claims to behave like Ethereum, but with much cheaper transactions and much faster processing. According to data from L2Beat, it represents about 54% of Ethereum’s market share and is worth about $3.38 billion in total. TVL, which is tracked by the number of tokens locked across all deposits for an L2, is near its highest level since May 2022, the data shows.
L2 scaling solutions like Arbitrum, Optimism, Immutable X, StarkWare, and others are built on top of Tier 1 blockchains like Ethereum. But L2s work faster and cheaper, reducing the load on L1s by bundling transactions and recording only the final results on the main blockchain. So you don’t block the network.
Source: La Neta Neta
Jason Jack is an experienced technology journalist and author at The Nation View. With a background in computer science and engineering, he has a deep understanding of the latest technology trends and developments. He writes about a wide range of technology topics, including artificial intelligence, machine learning, software development, and cybersecurity.
