EtherLayer2 Summary

You’ll hear Layer2 ringing in your ears every day now, and since Ether L1 is processing about 15 transactions per second in its current iteration, this has led to a number of problems: the network often becomes congested.

EtherLayer2 Summary

Every day now you hear the voice of Layer2 around your ears, as if the whole world is talking about it. Since Ether L1 processes about 15 transactions per second in its current iteration, this has led to many problems: the network often becomes congested, sometimes pushing gas costs to extremely high levels, and people have to look for better solutions, and L2 (Layer2), with its efficient processing level, is constantly replacing L1 (Layer1).

Ether’s slow transaction speed and expensive Gas (fees) were complained about by people before the above problems with Ether, which were already proposed by Vitalik Buterin back in 2017 as a solution to increase the transaction throughput of Ether with L2, a protocol that enables users to bundle other protocols and save money and increase efficiency by trading in Ether L2.

As a result the demand for L2 is rapidly rising, extending four different solutions for L2, explaining their representative applications.

1) ZK Rollup camp


Hermez Network




1/5. Loopringorg crowdfunded $36 million in August 2017 and started its Layer2 R&D path. Without previous experience, Loopringorg has experienced 4 years of technology development, continuous exploration and innovation. The L2 application with the longest history of operation.

In terms of security and transactions, Loopringorg adopts zero-knowledge proof technology to protect privacy and speed up transactions, without sacrificing the security level of Ether itself, the transaction speed can reach 2000~4000 transactions per second. Loopringorg is the most successful in terms of security, using the social wallet recovery, if the user’s device (wallet) is lost, stolen, phished or hacked, using the roadmark social smart wallet users, will have a variety of protections to protect their funds. Vitalik Buterin, the founder of Ether, has said: “Safeguarding assets, hardware wallets are not enough … The mnemonic is also not good enough … Multiple signatures are fine … Loopringorg social wallet recovery is even better!”

Loopring is about to build a complete L2 ecosystem, and the future Layer 1 ecosystem will move to L2 with it, continuing the most exciting chapter of the future. Loopring’s upcoming major releases (including EthPort + new web app + new mobile app + AMM/ money pool upgrades, etc.) will allow Loopring to step into the future ahead of time, and the entire ecology of Loopring Layer 2 can be seen as a decentralized, security-enhanced version of Coinan or Coinbase.

2/5. ZKSync’s currently designed system can currently handle 2,000~4,000 transactions per second, and has 100,000+ TPS after the launch of Ether 2.0. zkSync 2.0 will enter the main network within 6 months. The use of zero knowledge proof, slightly less secure than Roadmark, they can be said to have no rival in the comparison of transaction speed.

ZKSync announced on June 2 that it has gone live on the 2.0 test network ( )

The off-chain data availability system zkPorter was developed, but this version is not fully EVM compatible. On the cryptography side, the instruction set for zkEVM is complete and both implementations are finished, in-circuit and in the execution environment. On the compiler side, smart contracts written in Solidity and Zinc can now be compiled into zkEVM and will support ADDMOD, SMOD, MULMOD, EXP, and CREATE2 opcodes in the future. On the core infrastructure, full node integration is complete, enabling successful deployment and execution of compiled smart contracts.

The zkEVM and Core 2.0 infrastructure is ready to be made public, but the compiler needs more work to properly cover all edge cases. In order to provide a more comprehensive developer experience, ZKSync has decided to open up use of the SDK (program development kit) for zkEVM, the compiler, and the core as soon as the compiler is 100% stable.

Version 2.0 of ZKSync will support Layer2 NFT, and the next release will include our Web3 API implementation, which will be compatible with the Web3 standard as defined by the Ethernet documentation. Events will be available out of the box and all services can be easily integrated.

3/5. The Hermez Network, an Ethernet Layer 2 scaling solution, went live on March 24. Hermez’s mission is to contribute to the scalability of Ether from a decentralized, efficient and inclusive perspective to promote individual autonomy and freedom.

The development of the Hermez Network’s main network launched and users can now transfer money at a much lower cost of gas. Transactions at Layer 2 save about 90% of the cost of gas, a prerequisite for almost all L2s.

Of interest is that Hermez Network is a decentralized zero-knowledge aggregation (zk-rollup), Tether (USDt) runs on Hermez Network and has issued USDt on its L2, USDt is one of the first Ether Layer 2 extension solutions to go live on Hermez one of the first stablecoins to go live on Hermez’s Ether Layer 2 extension solution, which is designed to increase the scalability of the protocol to ensure cheaper transactions and token transfers to millions of users around the world. The surge in user activity on the network in recent months has led to a spike in ethereum gas costs. zk-rollups provides a solution to subsequent transaction bottlenecks.

Hermez Network is a Gitcoin’s ninth crowdfunding Layer2 project, development is still in its early stages, it went live on the main network on March 24 and has been running for only two months, the network initially supports USDT, ETH, WBTC, DAI and HEZ tokens for transfers, there are currently no scenarios such as trading applications, we can expect them Link to future route:

4/5. StarkWare on March 24, secured $7,500 in funding, with Paradigm leading the round, just as it did in StarkWare’s Series A funding round in 2018. Other returning investors include Pantera Capital, Sequoia Capital, Founders Fund, DCVC and Wing Capital, and StarkWare also attracted Three Arrows Capital and Alameda Research as investors for the first time.StarkWareLtd has gone back and forth, raising a total of StarkWareLtd has raised $111 million, on top of many star institutions adding their support; StarkWare has also partnered with prominent ethereum projects such as ConsenSys, Infura and Metamask.

StarkNet is a license-free, decentralized ZK-Rollup that operates as an L2 network on Ether, in which any dApp can achieve unlimited scale of computation without compromising the composability and security of Ether.

Scalability and Integrity
StarkNet achieves scale by generating STARK proofs off-chain and verifying them on-chain, while maintaining the security of L1 Ether.

Composability and Solid Foundation
StarkNet will provide Ethernet-level composability, facilitating easy development and composite innovation.

StarkNet’s foundation has already been tested in production.

Development Language Cairo and Commercial Use

StarkNet Contracts and StarkNet OS itself are written in Cairo, our general-purpose computing programming language. This makes it easier and faster to develop, review and maintain code, making the business use side on StarkNet where developers can easily deploy any business logic using StarkNet Contracts, saving even more time, and Cairo has been in production on the Ethernet mainnet since July 2020.

Prover and Verifier
Prover: STARK Prover powers the StarkEx scalability engine and has demonstrated the ability to process 600,000 transactions in a single proof on the mainnet. Validator: STARK Validator has been deployed on the Ethernet mainnet since June 2019. The Cairo verifier, which can verify arbitrary business logic proofs, has been deployed on the mainnet since July 2020.
5/5. Aztecnetwork has been operating since October 2017, they started as a blockchain lending platform with the vision of bringing the privacy features of Zcash (ZEC) to Ether, and thankfully, today they have done so. Right now Aztec Network is not issuing any tokens.

Aztec Network, which is more focused on using zero-knowledge proofs for transaction privatization, has now launched a new Layer 2 platform that also uses the same cutting-edge cryptography to improve scalability, using a zk proof called zkSNARK to bundle many transactions into an “aggregate” It uses a zk proof called zkSNARK to bundle many transactions into an “aggregate” proof that is then published to the main chain, thereby increasing transaction throughput. According to Aztec, the network is “fully scalable” and can process up to 300 transactions per second, sacrificing faster transaction speeds for enhanced privacy personalization options.

Other groups are developing zk-rollup technology designed to improve the scalability of Ether, and according to CEO Tom Walton-Pocock, Aztecnetwork technology is unique in that it also adds “programmable privacy.

First, each transaction is made private using zkSNARK – the sender, recipient and amount are hidden. Then, these transactions are bundled into an aggregate using an additional zkSNARK. The end result is a “SNARK within a SNARK,” says Walton-Pocock, who calls the arrangement a “zk-zk aggregate.

The Aztecnetwork team says that PLONK allows for the development of “generic” zkSNARKs, which Walton-Pocock says means that Aztec network’s SNARKs can also be programmed to be “really Walton-Pocock says this means that Aztec network’s SNARK can also be programmed to be “really any Defi interaction, where the resulting action is a token. Older zkSNARK systems, such as the one originally used to enable private transactions in Zcash, are programmed to perform the same thing multiple times.

Adding a new use case will require a new so-called trusted setup, the complex multi-party computation process required to establish the public security parameters of any zkSNARK (Simple Zero Knowledge Argument) system. After the initial trusted setup, SNARK use cases developed using PLONK are theoretically unlimited. Aztec Network has developed a new scripting language called Noir that developers can use to write zkSNARK transactions that are compatible with Aztec 2.0.

2)Optimistic Rollup camp



Optimism Rollup

OMG Network

Fuel Labs

Arbitrum is undoubtedly the most dazzling pretty boy in Layer2 during this time, and the reason why it has become a shining pretty boy, Obama said, is that it has a huge relationship with the team behind it. In 2014, Ed Felten and his students made the first version of “Arbitrum”, which was just a simple research at that time.

After Trump became President of the United States in 2017, Ed Felten returned to academia to continue his career as a professor and returned to school to teach, just as he ran into his current co-founders, Steven and Harry. Ed Felten then led his students and then began a journey of exploration into Ether L2 that has never stopped until now.

Ed Felten’s goal is to become the default L2 Rollup for Ether users and developers. To avoid expensive fee transactions and transfers, OKEX has recently announced that it will support Arbitrum deposits and withdrawals, in addition to Uniswap’s community call for the community to open an autonomous vote to join Arbitrum’s Layer 2 network has passed. Once Arbitrum is open to everyone, Uniswap can run in its network without additional work. chainlink has a deep partnership with Arbitrum, which means that nodes of the prophecy machine network can run Arbitrum verifier nodes. More than 150 partners have already answered the call to join the Arbitrum Rollup queue, and the number of partners continues to grow.

With a large number of partners on board, there are also developers who will weigh which provider has the advantage, starting with the fact that Arbitrum uses multiple rounds of fraud proofs to detect fraudulent transactions on Layer 2. In contrast, Optimism relies on a single round of fraud proofs. Multi-round fraud proofs focus on the exact location of the dispute in the Layer 2 Rollup (aggregate) and only perform that part on Ether’s Layer 1. Single-round fraud proofs require more transactions from Layer 2 to be processed on Ether’s Layer 1.

At the top, Arbitrum’s multi-round fraud proofs take longer to resolve while using less gas on the main chain, while Optimism’s single-round proofs, within a week, resolve faster but use more gas when posted to Ether’s Layer 1, which can violate the blockchain’s per-block gas limit.

According to a post by Ed Felten, co-founder of Offchain Labs, which developed the Arbitrum solution, “The choice between single and multiple rounds comes down to a tradeoff between on-chain costs and when resolving disputes.” Other trade-offs include easy-to-deploy projects that mitigate the high gas costs for their users.

A major advantage of Arbitrum is that it does not require developers to “change a single line of code,” as decentralized derivatives exchange MCDEX also says: “We deploy in Arbitrum without having to change it when we deploy on a single line of code. “

Mariano Conti, former head of smart contracts at the Maker Foundation, agreed, telling The Defiant, “Being able to deploy the same code to Arbitrum that I deploy on the mainnet is a plus.” While Optimism Rollup typically requires developers to tweak their code, Arbitrum’s system allows developers to deploy the exact same code to its Layer 2.

2/5. Optimism Rollup Since June 2019, Optimism has been building an ethereum scaling solution based on Optimistic Rollup.Paradigm invested in the project, and the Paradigm CEO is a former co-founder of Coinbas and has invested in a very large number of successful projects in the industry The solution is designed to increase the throughput of Ether (processing around 500 transactions per second) and reduce its gas costs.

Earlier this year, Optimism “soft-launched” its solution, Optimism Virtual Machine (OVM), with decentralized exchange Synthetix. This means Synthetix will integrate the solution in four phases to limit the risk of its platform. optimism says Synthetix users are already enjoying speed and cost savings. optimism says the cost savings of over 100,000 transactions is about $10 million.

Uniswap, another major decentralized trading platform integrated with Optimism, said it is aiming to launch its version V3 L1 Ether mainnet and will soon deploy L2 on Optimism. formerly known as the Plasma Group, Optimism pioneered Optimistic Rollups. Aggregation provides scaling by bundling or aggregating transactions into a single transaction. With aggregation, transactions are received on the main ethereum blockchain but executed on the L2 solution, and then the execution data is sent back to ethereum. Since the computation is done off-chain, it reduces the load on Ether, but maintains its security.

The Optimistic Rollups system is currently less than perfect and postponed going live on the mainnet after August. Many Uniswap community members, who were alarmed by the rising fees, recently voted to connect to Arbitrum’s Layer 2, and Uniswap’s partnership with Optimistic Rollups is temporarily The partnership between Uniswap and Optimistic Rollups has come to an end.

3/5. Cartesi is addressing the pressing issues of blockchain scalability and high costs by implementing a variant of Optimistic aggregation. Most notably, Cartesi allows developers to code with mainstream software stacks, revolutionizing smart contract programming. noether, Cartesi’s sidechain, is optimized for ad hoc data and provides low-cost data availability for dApps.

Cartesi’s competitive advantage as a Layer 2 and optimistic aggregation solution is that it allows developers to write their smart contracts and dApps directly using mainstream software components and Linux OS resources. With mainstream programmability, dApp developers have new expressive power to create more complex and powerful smart contracts. It also opens the door to adoption by regular developers who have never programmed for the blockchain before and enables them to create decentralized applications using familiar software stacks.

Descartes Rollups is an implementation of Cartesi Rollups that supports scalable smart contracts built using mainstream software stacks. Descartes Summaries is a variant of Optimistic Summaries with interactive dispute resolution.

Developers will be able to write smart contracts that run on Linux VMs using a myriad of mainstream software components. With Cartesian, developers solve the scalability limitations of Ether with a million times the computational gain while retaining the strong security guarantees of the blockchain.

4/5. Fuel Labs is an optimistic aggregation, a special kind of sidechain architecture that is both trust-minimizing and license-free. Unlike traditional sidechains, where the security of user funds depends on an honest majority of certain verifiers disconnected from the main chain miners, optimistic aggregation borrows security directly from the main chain (ethereum).

A simplified version of optimistic aggregation is as follows. Anyone can construct an aggregated block off-chain and submit it to Ether as call data (i.e., simple binary data attached to a transaction). Each block submitted in this way must build on the previous rollup block (the contract tracks the block header hash of the rollup chain) and contain a parameterizable bond. If a block is invalid, anyone can submit and process a compact fraud proof on the chain, which will roll the aggregate chain back to the previous block, burn a portion of the bond, and award the rest to the fraud provers. After a parameterizable timeout, the aggregate block is finalized and considered valid (i.e., can no longer be proven fraudulent) and their bond is unlocked. Withdrawals are initiated by burning coins on a rollup, and then completed after that rollup block is completed.

Fuel Labs hopes to use it for global payment settlement, application-specific tokens, virtual game tokens and rewards, user transfers of ERC-20 tokens, and other applications.

3) Plasma camp


OMG Network

Polygon (Matic)

Part of the previous rebranding of Matic to Polygon will also see the project run on systems similar to Ether or Polkadot and scale using a multi-chain architecture. polygon has released its Software Development Kit (SDK), a new framework for deploying Ether-compatible blockchains on the network, the SDK is a set of pluggable of modules for developers to quickly deploy Ethernet-compatible chains.

Polygon’s transaction fees are also quite low, handling 1,000 to 9,000 transactions per second, and claims to handle up to 65,000 transactions per second once Ether 2.0 goes live.

A rapidly rising star in the scalability race is Polygon, a side-chain network where Polygon’s developer tools are available out-of-the-box and can therefore be seamlessly ported to Ether smart contracts. This gives developers and users access to the same functionality as Ether. Easy for partners to join, many Ether dApps, including Aave and Sushiswap, have ported their contracts to Polygon’s Plasma-PoS chain in the last six months.

Polygon will also support other Ethernet scalability solutions while being compatible with Optimistic Rollups , ZK-Rollups, StarkWare’s Validium chain, and these extension solutions (e.g. Rollups) are still in development and will be implemented at a later date.

2/3. OMG Network is an ethereum-based blockchain ecosystem that provides investors with multiple ways to earn profits. Specifically, the OMG Network is a decentralized exchange, a liquidity provider mechanism, a messaging network and a blockchain gateway with digital assets. The platform has a reputation for being an alternative financial and digital commerce tool. These systems work in tandem to enable cross-chain asset transfers without the need for cryptographic exchanges.

From the outset, it was clear that the OMG network would be different. Both the Bank of Thailand and the Thai Ministry of Finance have approved the project. The project is also backed by the ethereum camp, Vitalik Buterin and Gavin Wood. Since its launch, OMG has seen considerable growth and development. Today, the OMG network serves as a valuable Layer 2 scaling solution that increases Ether’s transaction throughput. Specifically, the protocol enables users to bundle their Ether transactions to save money and increase efficiency.

The project’s lead developer is none other than Joseph Poon, best known for developing the Lightning Network and Plasma, both Layer 2 protocols that have the potential to revolutionize the market moving forward. His expertise has helped make the OMG network a unique project in the market.

Impressively, the project received support from numerous established investors early on. These investors included Toyota Financial Services, Sumitomo Mitsui Banking Corporation, SMBC Ventures, and Aioi Nissay Dowa Insurance Company in Japan. These developments have helped boost the confidence of individuals seeking to participate in the OMG network.

The OMG Network facilitates cross-platform payments on the blockchain. This open payment platform and decentralized exchange resides on the ethereum blockchain, providing users with a scalable and fully open alternative. omg users enjoy low fees, fast transaction times and cashing options. in June, the omg network launched a new scalable solution that increases transaction speeds to levels comparable to global payment processors such as Visa In June, OMG Network launched a new, expanded solution that increases transaction speeds to levels comparable to global payment processors such as Visa.

GluonNetwork tends to support decentralized high-frequency applications that require scalability, and Gluon is a purpose-built sidechain designed to avoid the shortcomings of ethereum, congestion and expensive transaction fees, as well as the problems of UTXO-based plasma sidechains. gluon leverages aggregation in novel ways and was originally designed for high-speed transactions without the risk of escrow. Gluon creates efficient small aggregations (using Merkel Root) to take advantage of the fundamental security benefits of the Ethernet mainchain.

The development of Gluon Rollups Layer2 grew directly out of the foreseeable scalability issues of plasma sidechains with the UTXO model, especially for exchanges. It is an alternative to some other Layer2 models, such as ZK Rollups and Optimistic Rollups. ZK Rollups generates SNARK proofs, which causes problems because it requires additional computational resources and creates a larger footprint on the chain, creating scalability issues as the state grows linearly. Optimistic Rollups suffer from throughput limitations and 7-day withdrawal delays. However, Gluon overcomes these issues, while also offering the key benefits of full knowledge transparency and an explorer to fully determine the correctness of Layer2 state.

Gluon Rollups outperform the UTXO-based Plasma sidechain, which has a number of drawbacks, especially for exchanges. Using the main chain for transactions such as deposits can lead to witness limitations. This is an over-reliance on the main chain for confirmations, can create large transactions, can overwhelm large numbers of UTXOs if a large number of users want to exit the chain, and can cause the Plasma sidechain to fail integrity checks due to unpredictable congestion and fees, with the output tending to spread out to the smallest possible size, leading to problems with scalability and the natural result of time priority.

The Gluon state has a real-time browser to track any activity. In short, each participant has enough data to prove the correctness of any new entries and links to previous entries, thus maintaining security. Validity can be proven by going back to the source as in the UTXO system. Since such a retrospective is impractical, changes are verified in real time to maintain efficiency.

Contract upgrades can be performed on Gluon without individual users having to interact with the deployed new contract, and any user data can be migrated seamlessly. This may be a critical piece of code needed in time, or a suggested upgrade. This also relates to comprehensive Gluon fraud proofs that can inform any need to stop or take action.

4) Hybri

Celer Network

1/1. founded in 2018, Celer Network is a layer2 scaling platform that pushes fast, secure and low-cost blockchain applications on Ether, Polkadot and other blockchains to mass adoption. celer launched the world’s first generalized stateful channel network and continues to push the frontiers of layer2 scaling with advanced Rollup technology. CelerX, cBridge, and other applications and middleware built on Celer have attracted over 1 million users in the gaming, DeFi and blockchain interoperability space.

Instant, low-cost value transfer between multiple different Layer 2 networks on Ethernet, including Optimistic Rollups such as Optimism, Arbitrum and Celer Rollups, and PoS sidechains such as Matic and SKALE, without going through the underlying Layer 1 blockchain. Instant access from/to Ethernet layer 1 and existing layer 2 without long latency. Bi-directional bridging between Layer 2 on one blockchain and a completely different Layer 1 blockchain without going through the corresponding root Layer 1 at all. Seamlessly connect to the Celer Stateful Channel Network in any single chain with full cross-chain routing support.

You can think of Celer Network as a hybrid universal Layer 2 solution that is compatible with all blockchains running at Layer 2 and writing programs on their chains.

Posted by:CoinYuppie,Reprinted with attribution to:
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