There are many cryptocurrencies, so it is necessary to classify them for better study and understanding. The most widespread classification is of course according to their market capitalization, but they can also be classified according to their function. Today I am going to comment on Ethereum Layer 2 solutions.
After Bitcoin, the ethereum blockchain is arguably the most popular. This popularity has brought with it network limitations and a significant increase in the cost of transactions. It is to solve these problems that Ethereum layer 2 solutions arise, whose fundamental objective must be to solve scalability problems, increase the speed of transactions, decrease transaction costs and all of this must be achieved without reducing the security of the network of Ethereum and its decentralization. They are called Layer 2 solutions because they are different networks that run on top of the Ethereum network in the form of smart contracts. The main projects are: Polygon (Matic), Cartesi, Arbitrum, Parastate (supported by the Polkadot ecosystem), Optimism, xDAI, Avalanche and Loopring among others.
I will emphasize in Loopring that has captured my attention in recent days due to the increase in the value of its LRC cryptocurrency. Like other layer 2 projects, it offers speed and lower cost of transactions than in Ethereum. It offers trading services at low cost, being a decentralized Exchange where the assets are controlled by the users themselves, guaranteeing the security levels of Ethereum. The network can secure up to 2025 transactions per second.
The LRC all time high (ATH) is $ 2.40 and was reached on January 8, 2018. In the last 30 days he has had a growth of 171.03%.
The sources used for this post were: Loopring.org, athcoinindex, 101 blockchain, cointelegraph. Kucoin.
Remember this is not financial advice, it is only for the purpose of learning about financial issues. Thank you very much for reading me and always keep the will to make your dreams come true.
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