L2 Solutions Implementation
Red Pill Studio offers development of layer 2 solutions for your projects. Layer 2 solutions accelerate throughput without interfering with original decentralization and safety attributes. An essential quality of Layer 2 scaling is that they must inherit the fundamental safety of the main chain.
When Ethereum goes through periods of elevated usage, it has historically had a tendency to get very expensive to use. On rare occasions, transaction fees have risen to as much as $200–300 worth of ETH.
To help stop this from happening, teams of developers are building networks ‘on top’ of Ethereum. These are referred to as layer-2 solutions, or L2 solutions for short.
As the name implies, L2 solutions are built on top of layer 1 (‘L1’)—Ethereum’s base layer—to secure off-chain interactions. This simply means they process transactions on this additional layer, instead of Ethereum’s main chain.
L2 solutions can help solve the scalability trilemma as they’re built on L1, so they can secure off-chain interactions by leveraging the security of L1. This helps to ensure there are no security trade-offs, while helping to provide more block space for transactions to be processed—helping scale the network and reduce transaction fees..
Think of L1 as the settlement layer, making sure everything balances, is secure and is running efficiently. Whereas L2 is where all transactions are batched and processed before being sent to L1 for reconciliation.