Polygon layer 2 Solution: Why is it important?

The MATIC network, also known as Polygon, was created with the purpose of overcoming the common problem on Ethereum: scalability. This is why several individuals have adopted this layer 2 solution on their crypto projects. 

It is necessary to understand of what a layer 2 solution is as well as some examples of these networks. 

This is why we made this article just for you!

What is a Layer 2 Solution?

The Ethereum blockchain has created a revolutionary financial system, processing around 1 million transactions each day. However, it often suffers congestion in the network leading to extremely high gas fees. This congestion could be solved by implementing more powerful nodes in the system. But, this solution has a problem. It goes against the main purpose of blockchains which is to offer people a decentralized system. 

Ethereum has announced an upgrade called ‘Ethereum 2.0’ that aims to solve these issues. The release date in 2019 was delayed and in the present of 2022, there is not an official launch date. 

Facing this situation, the layer 2 solution was created. This is a secondary protocol or framework that operates on top of an existing blockchain protocol. These existing protocols such as the Ethereum network and Bitcoin are known as Layer 1. The purpose of Layer 2 Solutions is to improve the scalability and transaction speed of Layer 1. But also keep benefits from the security the main chains offer

Examples of Layer 2 crypto

There are different types of layer 2 solutions, each one offering a different approach To achieve this scalability. The main ones are the following:

  • Plasma: It makes use of Markle trees creating a new chain. Means that there is no need to store data on the layer 1 chain nor set the blocks on the main chain. Example: Polygon.
  • Rollups: They perform transactions on layer 2 while submitting data to the main chain. There are ZK rollups which combine multiple transfers that are executed in one single transaction and optimistic rollups. Which operates in parallel to the main Ethereum chain on layer 2. Examples: Loorping, Optimism.
  • Sidechains: They function separately from the main chain by using ledgers that operate on their own. This means that the consensus mechanism is not ruled by the main chain. Example: Skale.
  • State Channels: They make a large number of transactions outside the layer 1 chain but submitting only two on Ethereum. Examples: Perun, Raiden

Matic Layer 2 Solution: Why is this Layer 2 Blockchain important?

Matic Layer 2 Solution or also known as Polygon has adapted successfully to the Ethereum challenges. Which make it one of the top L2 Scaling Solutions nowadays. It must be emphasized that Polygon uses both. The protocols from Ethereum and the systems from other blockchains to build a framework that is unified and secured. Combining the advantages of multiple blockchains into a single network is what makes Polygon formidable

Also, it reduces gas costs and the Transaction per Second (TPS) speed of transactions. This makes this layer 2 Solution cost-effective. 

High transaction fees on Ethereum and its slowness were the main drawbacks for people when considering entering into a blockchain platform, earning crypto and investing on NFTs. This is why having an initiative like Polygon which solves these problems effectively, makes it an important asset in the Blockchain network.

Polygon has stated that it is aiming at transforming the blockchain of Ethereum into a ‘Internet of Blockchains’. The blockchain network already has experienced some changes and its future ahead seems to also be full of evolution.