Layer 2 solutions are breathing life into Ethereum’s quest for mass adoption by making the network more scalable, faster, and more affordable than ever: a welcome relief for DeFi traders whose transaction fees have risen significantly over the past year. In fact, layer 2 solutions are creating conditions that fulfill the entire financial world’s theoretical dream: a nearly frictionless market. The synergy of layer 2 solutions and the rise in nearly fee-free crypto trading could mark a renaissance in DeFi’s short but storied history.
What is layer 2? The-umbrella term for a series of scaling innovations like ZK rollups, Optimistic rollups, state channels, and side chains. These protocols increase the efficiency and capacity of Ethereum’s main network by taking work off the main-net and doing it elsewhere… rollups process computations away from Ethereum’s main chain, and then the verifiable data from these computations is added to the main network in bundles. By doing work elsewhere, bundling the necessary data, and inserting the results onto Ethereum’s ledgers more efficiently, users can avoid multiple transaction costs .. https://yieldapp.medium.com/layer-2-solutions-can-revive-defi-trading-87eff703cd8c.