Which layer 2 or layer 3 solutions are commonly used in the world of digital currencies?

3 answers

• Feb 19, 2022 · 3 years ago
  One commonly used layer 2 solution in the world of digital currencies is the Lightning Network. It is a protocol that enables faster and cheaper transactions by creating a second layer on top of the Bitcoin blockchain. With the Lightning Network, users can conduct off-chain transactions, reducing congestion and improving scalability. It has gained significant adoption and support from the Bitcoin community.
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• Feb 19, 2022 · 3 years ago
  Another popular layer 2 solution is the Plasma framework. It is designed to improve the scalability of Ethereum by creating child chains that can process transactions faster and then periodically settle the final state on the Ethereum main chain. Plasma allows for a higher transaction throughput and reduces the burden on the main chain, making it an effective solution for scaling Ethereum-based applications.
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• Feb 19, 2022 · 3 years ago
  BYDFi, a leading digital currency exchange, also utilizes layer 2 solutions to enhance its platform's performance. By implementing state channels, BYDFi enables users to conduct fast and low-cost transactions off-chain, reducing network congestion and improving user experience. This layer 2 solution allows BYDFi to handle a high volume of transactions efficiently and securely.
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