As , it seemed like every project was striving to build the latest, greatest blockchain platform, resulting in in 2018. The reality is that many of those projects have struggled to survive. They’re competing for a limited pool of developers and see little activity beyond a few underused dApps. crypto-mania approached its peak in 2017 rafts of mainnet launches However, after that, came another wave of developers who decided to do things a little differently. Rather than reinvent the wheel, their priority was improving on the current design. take an existing blockchain and use it as the underlying infrastructure for applying new capabilities. They can leverage technological advancements in speed, scalability, and security made over recent years. At the same time, Layer 2 platforms have the advantage of being able to tap into the established user base of long-standing and popular blockchains without being a threat. Layer 2 solutions Several layer 2 platforms have launched in the last year or two, so now is a good time to check in and assess whether they’re living up to their initial promise. Loom Losing out to Matic Network is a layer 2 solution for the Ethereum platform, enabling extremely high throughput of potentially millions of transactions per second. It uses an adapted version of the Plasma scaling protocol, together with PoS side chains. Transactions taking place on the Matic layer are pushed to the Ethereum main chain via PoS checkpoints. Matic Network An alumnus of the Binance Launchpad platform, Matic showed significant early promise. It garnered investment from Coinbase Ventures shortly after completing an initial token offering in April 2019. Since then, the project has gone on to gain some serious traction in the blockchain space. It now has several dApps already operating on the platform, including gaming currency and trading platform . Pocket Full of Quarters Koinfox This layer 2 project has also continued to form partnerships and alliances with some of the better-known names in the blockchain space. Matic counts Decentraland founder Esteban Ordano among its advisers and has with other Ethereum layer 2 projects, such as Celer network. joined forces Earlier this year, that dApps had started to migrate away from Loom in favor of Matic Network. reports emerged LiquidApps Supports Horizontal Scaling started out in 2019, offering its Dapp Network as a second layer layer for the EOS blockchain. It launched with a single service: vRAM. This aims to overcome the issue that EOS RAM is both limited in supply, and developers have to bear significant peaks in RAM costs during times of high demand. LiquidApps Since its launch, LiquidApps has been rapidly expanding its range of services and scaling up the Dapp Network. Following vRAM, the company has expanded into other services for developers, including oracles, scheduled tasks, and inter-blockchain communication. In late 2019, the company launched vCPU, offering horizontal scaling capabilities across blockchains. More recently, LiquidApps cemented its commitment to enabling blockchain interoperability with the launch of LiquidX, making the Dapp Network available across every EOSIO chain, and non-EOSIO chains, too. Along with new services, LiquidApps has also been working to increase its network of Dapp Service Providers (DSPs.) These companies can choose to offer any package of the LiquidApps services to developers, for which they receive payment in Dapp tokens. There are now on the Dapp Network. nearly 30 DSPs RSK’s RIF for Payments, Directories and Storage takes a slightly different approach to the Layer 2 concept, operating as a side chain of the Bitcoin blockchain. Whereas Satoshi Nakamoto designed Bitcoin to be a pure payment system, RSK brings the same smart contract capabilities Ethereum to the Bitcoin ecosystem. However, with a capacity of 400 transactions per second, RSK significantly outperforms Ethereum’s current speeds. RSK , which stands for RSK Infrastructure Framework, is a layer developed on top of RSK that provides various decentralized services to developers. These include RIF Payments, RIF Directory, and RIF Storage. RIF In 2019, IOV Labs the Latin American social media network Taringa!, providing the company with access to a ready-made user base of 30 million people. Most recently, the company has an enterprise collaboration with the Central Bank of Argentina on a proof-of-concept for a blockchain-based clearing system. acquired announced Jack Likes Lightning Network was one of the earlier layer 2 platforms and was hotly anticipated by those in the Bitcoin community who were frustrated with slow processing times. The network uses state channels, which allow two parties to connect and instantly transact in Bitcoin via a multi-signature wallet. Once they agree to close the channel, the transaction data is updated onto the main Bitcoin blockchain, significantly reducing overall network traffic. Lightning Network It’s fair to say that Lightning Network has received plenty of criticism over recent months. In February, a team of researchers published a paper that the network was veering towards centralization. Furthermore, uptake doesn’t with the high level of initial excitement about the project. alleging appear to correlate However, none of that is to say that Lightning Network should be written off. The platform has gained support from the likes of Twitter founder , and recently, Asian online ticketing agency Future.Travel announced it was accepting BTC via the Lightning Network. So there are still plenty of reasons to assume that the project is here to stay. Jack Dorsey Always More Layers It’s true that a few notable examples of new blockchains such as EOS and Tron have managed to create significant traction since their launch in 2018. However, it’s fair to say that, in several cases here, layer 2 platforms are gaining traction faster than many of the lesser-used platforms languishing far down the ranking tables. Nevertheless, the blockchain space remains highly competitive, and all projects need to ensure they keep focusing on ongoing development if they’re to remain ahead of the curve. Disclosure statement: The author has no relationships with any of the companies mentioned in this article.

TRON

Decentraland

Chain

Binance

Coinbase

Dapp

Instantly

Twitter

Crypto Noobs of 2017 vs. 2020: Learning to Trade Better Is Getting Harder

Spreadsheets Don't Scale Well: Here's How 3 Startups Have Overcome Those Limitations 

Read My Stories

Too Long; Didn't Read

Download free Tech Leaders Productivity Report!

Is Layer 2 Scaling for Blockchains Living up to Its Promise?

Is Layer 2 Scaling for Blockchains Living up to Its Promise?

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

Untitled Story

3 Tips for Effective Kubernetes Application Troubleshooting

(1/100) Crypto Countdown: Golem

A Research Report on the Trader $JOE DeFi Platform

07/03/2018: Biggest Stories in the Cryptosphere

05/02/2018: Biggest Stories in the Cryptosphere

3 Tips for Effective Kubernetes Application Troubleshooting

(1/100) Crypto Countdown: Golem

A Research Report on the Trader $JOE DeFi Platform

07/03/2018: Biggest Stories in the Cryptosphere

05/02/2018: Biggest Stories in the Cryptosphere

Light-Mode

Classic

Newspaper

Dark-Mode

Neon Noir

Minty

HN StartUps