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Layer-2 cryptos are solutions that aim to improve the scalability, speed, and efficiency of the underlying blockchains, such as Ethereum and Bitcoin. They use various techniques, such as rollups, sidechains, and state channels, to process transactions off-chain or on a secondary layer, and then settle them on the main chain. Layer-2 crypto coins have gained popularity and importance in the cryptocurrency space, as they offer lower fees, higher throughput, and better user experience. Here is the list of top 10 layer-2 cryptos for 2024 that has the potential to 10x your investment,
Polygon stands as a robust framework, fostering the creation and connection of Ethereum-compatible blockchain networks. This platform offers an array of scaling solutions, including Plasma, zkRollups, Optimistic Rollups, and Validium. Its primary focus extends to ensuring interoperability, security, and the autonomy of diverse applications within the blockchain ecosystem.
As an open-source platform, Avalanche is designed to launch decentralized applications and enterprise blockchain deployments. Its distinguishing feature lies in the implementation of the unique Avalanche consensus protocol, fostering high scalability, interoperability, and low-latency operations.
Arbitrum emerges as an innovative layer-2 project, empowering users to construct applications on the Ethereum layer-1 blockchain. Leveraging rollup technology to consolidate multiple transactions into one, Arbitrum delivers high scalability while simultaneously keeping on-chain transaction costs at a minimum.
Positioned as a protocol on the Ethereum blockchain, Loopring employs zkRollups to establish secure and scalable decentralized exchanges. Its functionality extends to supporting both order book and automated market maker (AMM)-based trading models.
ZKSwap is a decentralized exchange that harnesses zkRollups for achieving remarkable scalability and cost-efficiency. Facilitating rapid and fee-free token swaps, liquidity mining, and NFT trading, ZKSwap introduces a governance token empowering holders to participate in protocol decision-making.
Operating on the Ethereum blockchain, dYdX serves as a decentralized platform for margin trading, perpetual contracts, and spot trading. Its foundation is strengthened by StarkWare's zkRollup technology, ensuring low fees, high liquidity, and swift execution of diverse trading activities.
Optimism emerges as a layer-2 scaling solution, employing Optimistic Rollups to enable rapid and economical transactions on the Ethereum blockchain. Compliant with the Ethereum Virtual Machine, it supports smart contracts and decentralized applications while featuring a native token for staking and governance.
Celer Network takes center stage as a layer-2 scaling platform, facilitating rapid and secure off-chain transactions. Its mechanism relies on state channels, ensuring instantaneous and cost-effective transfers of digital value. Furthermore, Celer Network supports cross-chain interoperability and finds applications in the gaming sector.
StarkWare introduces a layer-2 scaling solution utilizing zk-STARKs to enhance blockchain performance and privacy. Offering verifiable computation and zero-knowledge proofs, StarkWare finds applications in decentralized exchanges, gaming, and identity solutions, complemented by a native token used for staking and governance.
Positioned as a layer-2 scaling solution, Fuel leverages Optimistic Rollups to facilitate swift and cost-effective transactions on the Ethereum blockchain. Its capabilities extend to supporting a range of assets, including ERC-20 tokens, stablecoins, and NFTs, with a native token that plays a pivotal role in staking and governance.
