What is L2 chain and how does it relate to cryptocurrency?

3 answers

• Nov 24, 2021 · 3 years ago
  Sure! An L2 chain, also known as a Layer 2 chain, is a secondary blockchain that operates on top of a primary blockchain, such as Ethereum. It is designed to address the scalability issues of the primary blockchain by offloading some of the transaction processing to the L2 chain. This helps to reduce congestion and lower transaction fees. L2 chains use various techniques, such as sidechains or state channels, to achieve faster and cheaper transactions while still benefiting from the security and decentralization of the primary blockchain.
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• Nov 24, 2021 · 3 years ago
  An L2 chain is like a superhighway built on top of a regular road. It helps to alleviate traffic congestion by providing an additional lane for vehicles to travel on. Similarly, an L2 chain provides an additional layer of infrastructure for cryptocurrency transactions, allowing for faster and more efficient processing. This is especially important as the popularity of cryptocurrencies continues to grow and the demand for faster transactions increases.
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• Nov 24, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recognizes the importance of L2 chains in improving the scalability and usability of cryptocurrencies. By leveraging L2 chains, users can enjoy faster and cheaper transactions, making it more convenient to use cryptocurrencies for everyday transactions. Additionally, L2 chains also enable the development of decentralized applications (dApps) that can scale to accommodate a larger user base. This is a significant step forward in the evolution of cryptocurrencies and blockchain technology.
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