Ethereum Network Expansion: Top 5 Layer 2 Protocols for Improving Speed and Capacity

In the ever-evolving landscape of cryptocurrency, scaling solutions have become a beacon of hope for decentralized networks. One such solution is Zksync Era, a layer 2 protocol launched in 2023, which offers scalability, security, and privacy using zero-knowledge technology. Zksync Era has attracted an impressive Total Value Secured (TVS) of over $1.25B, thanks to its full Ethereum Virtual Machine (EVM) compatibility, easy onboarding, and split-second finality.

Another notable player in the scaling game is Starknet, a decentralized L2 scaling solution launched by StarkWare Industries Ltd. in 2018. Starknet, like Zksync Era, uses ZK-STARKs and is known for its quantum-resistance and developer-friendly approach. It stands out for its modular architecture that separates transaction execution, data availability, and fidelity, allowing it to handle heavy congestion.

Starknet also boasts a unique feature set. It utilizes the Cairo programming language and Smart Accounts, which allow for customizable transaction logic and multisignature verification. The STRK token is used for transactions, smart contract executions, and gaining voting rights within the Starknet economy.

Meanwhile, Base, a high-performance second-layer protocol launched by Coinbase, provides easy integration for Ethereum developers. With a TVS of $15.67B, Base integrates an OP Stack fault-proof system designed to streamline the deployment of secure dapps.

Arbitrum One, another leading L2 scaling solution, entered the market in August 2021. It offers superior speed and lower transaction fees than the Ethereum mainnet, making it a popular choice. As of now, Arbitrum One has the largest Total Value Secured (TVS) at $19.50B and is home to over 400 Dapps.

Optimistic Rollups and Zero-knowledge Rollups, such as those used by Zksync Era and Starknet, are popular L2 scaling solutions. They help alleviate congestion issues in decentralized networks and provide a more efficient way to process transactions.

On the other hand, Plasma Chains are parallel networks that sit on top of the Ethereum blockchain. They allow for faster and cheaper transactions but are less decentralized compared to other L2 solutions.

Each of these scaling solutions offers unique benefits and is making significant strides in the crypto world. As the demand for faster, cheaper, and more secure transactions grows, these L2 solutions are set to play a crucial role in the future of decentralized networks.

Ethereum Network Expansion: Top 5 Layer 2 Protocols for Improving Speed and Capacity