Ethereum scaling solutions

Short description: Software to accelerate Ethereum application's transactions

Ethereum scaling solutions, more commonly known under a collective term of "Layer 2", are solutions designed to help scale Ethereum-based applications by handling transactions off the Ethereum Mainnet (Layer 1) while taking advantage of the robust decentralized security model of Mainnet.[1][2][3]

## Contents

* 1 State of the Ethereum blockchain
* 2 Scaling approaches
* 3 Scaling solutions
* 3.1 Optimistic roll-ups
* 3.2 ZK proofs
* 4 References

## State of the Ethereum blockchain

With global increase in blockchain adoption, the Ethereum network has surpassed 1+ million transactions per day - increased activity has risen the gas prices, needed to process these transactions. Layer 2 solutions are created with the intent of expanding the network and lowering the transaction processing costs.

## Scaling approaches

To solve the mentioned issues, multiple engineering teams have devised their own approaches to scaling Ethereum blockchain.

The most notable are mentioned here:

* Roll-ups[4]
* State channels[5]
* Sidechains[6]
* Plasma[7]
* Validium[8]

## Scaling solutions

According to the independent website L2Beat,[9] there are 20 visible participants in the Ethereum Layer 2 ecosystem. The most commonly used scaling approaches are optimistic roll-ups and zero-knowledge proofs (or "ZK-proofs"): 75% of current teams use one of the two approaches as the basis for their own solutions.

### Optimistic roll-ups

Optimistic roll-ups  Project | URL

|

Arbitrum | https://arbitrum.io/
BOBA Network | https://boba.network/
Fuel v1 | https://fuel.sh/
Layer2.Finance Network | https://layer2.finance/
Metis Andromeda | https://www.metis.io/
Optimism (Ethereum) | https://optimism.io/

### ZK proofs

ZK rollups  Project | URL

|

Aztec | https://aztec.network/
dYdX | https://dydx.exchange/
Loopring | https://loopring.org/
Polygon Hermez | https://hermez.io/
Starknet | https://starknet.io/
ZKSpace | https://zks.org/
ZKSwap 1.0 | https://zks.org/
ZKSwap 2.0 | https://zks.org/
zkSync | https://zksync.io/

## References

1. ↑ "Layer 2 Rollups". https://ethereum.org/en/developers/docs/scaling/layer-2-rollups/.
2. ↑ "Definition of Layer 2 blockchain". https://www.pcmag.com/encyclopedia/term/layer-2-blockchain.
3. ↑ "Layer 2 | CoinMarketCap". https://coinmarketcap.com/alexandria/glossary/layer-2.
4. ↑ "Layer 2 Rollups". https://ethereum.org/en/developers/docs/scaling/layer-2-rollups/.
5. ↑ "State channels". https://ethereum.org/en/developers/docs/scaling/state-channels/.
6. ↑ "Sidechains". https://ethereum.org/en/developers/docs/scaling/sidechains/.
7. ↑ "Plasma chains". https://ethereum.org/en/developers/docs/scaling/plasma/.
8. ↑ "Validium". https://ethereum.org/en/developers/docs/scaling/validium/.
9. ↑ L2Beat.com

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