Growth of layer solutions: As they again define the cryptocurrency landscape
In recent years, the cryptocurrency world has undergone a significant transition to more adaptable and efficient solutions. One of the following innovations to achieve the impulse is layer 2 (L2) solutions that are revolutionaries to feel the way we think of cryptocurrency, such as Polygon (Pol). In this article, we will go into the L2 solutions influence on the polygon market volumes, exploring what these innovations mean the industry in the cryptocurrency.
What are Layer 2 solutions?
- Layer solutions are a set of technologies that allow faster and cheaper transactions on blockchain networks. Unlike Mainnet, which is the primary circuit responsible for storing data, Layer 1 (L1) transaction requires a significant computing power that causes high fees and slow transactions.
2 layer solutions, such as Polygon optimism platform, use transaction processing and cache mechanisms outside the circuit to reduce gas fees and improve the speed of the transaction. By allowing users to create a temporary transaction “book” that can be stored in the L1 chain during peaks, layer solutions allow you to use network resources more efficiently.
How 2 layer solutions affect the polygon?
The Polygon Optimism Platform has been at the forefront of layer innovation, offering several key features that have contributed to its significant market growth. Here are some ways L2 solutions to the polygon affect market volumes:
1
reduced transaction fee : With lower transaction fees and faster execution, users can now make several transactions without excessive gas costs, making it more accessible to a wider range of investors.
- Increased scalability
: 2 layer solutions allow optimism to process up to 4 million transactions per second compared to Mainnet 1-3 million. This increase in throughput has generated higher market volumes and greater implementation.
3
Improved User Experience : Faster transaction time and lower fees have created a more invisible user experience than a polygon, encouraging more users to engage in the platform.
- Improved Security
: By turning off transactions from Mainnet, optimism reduces the network load, making it less vulnerable to attacks and increasing overall security.
Landfill market volume
The market capitalization of the landfill has increased significantly since its launch in 2017. According to CoinMarketcap, the market capitalization of Polygon reached $ 1 billion in February 2022, compared with about $ 150 million, when included in December 2020.
Similarly, the amount of optimism has experienced significant growth. In June 2022, optimism per day processed more than 3.5 million transactions, which is a significant increase in the initial monthly average of approximately 200,000 transactions.
Conclusion
- Layer solutions change the world of cryptocurrency, providing more efficient and customizable solutions to users. In the polygon, these innovations have led to significant market growth, increased transactions and improved user experience. As the 2nd layer solutions continue to grow, we can expect even greater reductions in transaction fees, faster execution time and increased scalability.
Additional reading
- “Political Optimism Platform: Future of Blockchain Deals”
- “Layer 2 Solutions: How they change the cryptocurrency landscape”
- “Polygon market capitalization exceeds $ 1 billion”