How do layer 2 protocols enhance scalability in the world of digital currencies?

1 answers

• Nov 24, 2021 · 3 years ago
  Layer 2 protocols are a game-changer for scalability in the world of digital currencies. They allow for faster and more efficient transactions by processing them off-chain. This means that the main blockchain is no longer burdened with every single transaction, resulting in improved scalability and reduced fees. Layer 2 protocols achieve this by creating a second layer on top of the main blockchain, where transactions can be processed in parallel. This approach not only increases transaction throughput but also enables new features and functionalities. However, it's important to choose layer 2 protocols carefully, as they may have different trade-offs and considerations. Overall, layer 2 protocols are a powerful tool for enhancing scalability in the world of digital currencies.
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