Discover the Top 10 Layer 2 Solutions and the Future of Blockchain Technology

As blockchain evolves from the concept of decentralized payments to a platform supporting hundreds of diverse applications, scalability has become the most critical challenge. Layer 1 blockchains like Bitcoin and Ethereum, while secure and decentralized, face throughput limitations. That’s why Layer 2 solutions have emerged as an effective answer, enabling transaction speeds to increase by thousands of times while maintaining the security of the main network.

Why Layer 2 Becomes a Strategic Choice

Currently, Bitcoin can process about 7 transactions per second (TPS), and Ethereum Layer 1 reaches 15 TPS — a figure significantly lower than Visa’s approximately 1,700 TPS. To address the blockchain trilemma of scalability, security, and decentralization, Layer 2 protocols have been developed. They act as “fast lanes” built on top of main blockchains, handling transactions off-chain and then consolidating results back to the main network.

The benefits of Layer 2 networks go beyond speed. They can reduce transaction fees by up to 95%, expand blockchain accessibility, and foster the growth of DeFi, GameFi, NFTs, and Web3 applications.

How Layer 2 Methods Shape the Future

Four main types of Layer 2 solutions are transforming the blockchain landscape:

Optimistic Rollups: Positive Assumption

Optimistic Rollups assume all transactions are valid unless proven otherwise. This approach reduces verification costs and accelerates processing, with throughput reaching up to 4,000 TPS.

Zero-Knowledge Rollups: Privacy Priority

ZK Rollups bundle transactions into a single proof without revealing transaction details. This method offers high privacy and impressive throughput, making it especially suitable for DeFi and NFTs.

Plasma Chains: Specialized Sidechains

Plasma functions as independent child networks connected to Ethereum, providing a unique approach to scalability with superior throughput.

Validium: Balancing Security and Efficiency

Validium processes transactions off-chain but still ensures security through cryptographic proofs, ideal for applications prioritizing speed.

Notable Layer 2 Networks

Arbitrum: Market Leader

Technology: Optimistic Rollup
Throughput: 2,000–4,000 TPS
Current ARB Price: $0.10 (24h change: -8.17%)
Circulating Market Cap: $555.88 million
24h Trading Volume: $1.82 million

Arbitrum holds over 51% of Ethereum’s Layer 2 TVL market share. It processes transactions up to 10 times faster than Ethereum Layer 1, reduces gas fees by 95%, and offers a developer-friendly environment.

Optimism: Reliability Standard

Technology: Optimistic Rollup
Throughput: 2,000 TPS
Current OP Price: $0.13 (24h change: -8.79%)
Circulating Market Cap: $273.41 million
24h Trading Volume: $5.35 million

Optimism aims to be a fully community-governed platform supporting 4,000 TPS and reducing gas fees by up to 90%. It stands out for transparency, a rich ecosystem with DeFi protocols, NFT marketplaces, and ongoing decentralization efforts.

Lightning Network: Bitcoin’s Solution

Technology: Bi-directional payment channels, smart contracts
Throughput: Up to 1 million TPS
TVL: $198 million+

Lightning Network is revolutionizing Bitcoin by enabling instant offline transactions with extremely low fees. It’s ideal for microtransactions and everyday use.

Polygon: Multi-Technology Ecosystem

Technology: zk Rollup
Throughput: 65,000 TPS
TVL: $4 billion

Polygon offers a comprehensive platform with multiple Layer 2 solutions for Ethereum. With throughput exceeding 65,000 TPS and very low gas fees, Polygon is a preferred choice for DeFi, NFT marketplaces, and regular blockchain applications.

Base: Coinbase’s Layer 2 Platform

Technology: Optimistic Rollup
Throughput: 2,000 TPS
TVL: $729 million

Built on OP Stack, Base aims to cut Ethereum gas fees by up to 95% and enable near-instant transactions. Supported by Coinbase, it benefits from strong security expertise and a large user base.

Dymension: Modular Blockchain

Technology: RollApps
Throughput: 20,000 TPS
Current DYM Price: $0.04 (24h change: -1.23%)
Circulating Market Cap: $20.14 million

Dymension is the first Layer 2 network within the Cosmos ecosystem, offering specialized RollApps optimized for specific applications. Its modular design allows scaling of individual apps without affecting the entire network.

Coti: Privacy First

Technology: zk Rollup
Throughput: 100,000 TPS
Current COTI Price: $0.01 (24h change: +3.73%)
Circulating Market Cap: $32.06 million

Coti is transitioning from a Layer 2 solution for Cardano to a privacy-focused Layer 2 network for Ethereum. This shift opens opportunities for developers to build privacy-centric dApps.

Manta Network: Privacy Passport

Technology: zk Rollup
Throughput: 4,000 TPS
Current MANTA Price: $0.07 (24h change: -0.98%)
Circulating Market Cap: $33.24 million

Manta Network includes Manta Pacific (EVM-compatible Layer 2) and Manta Atlantic (privacy identity management). Since launch, it has quickly gained prominence, becoming Ethereum’s third-largest Layer 2 by TVL.

Starknet: The Future with Zero-Knowledge

Technology: zk Rollup (STARK proofs)
Throughput: 2,000–4,000 TPS (theoretically millions)
TVL: $164 million

Starknet uses STARK proofs to verify transactions, offering unmatched speed. It aims to become a fully decentralized network supporting a rapidly growing DeFi, NFT, and gaming ecosystem.

Immutable X: Gaming Playground

Technology: Validium (ZK-Rollup)
Throughput: 9,000+ TPS
Current IMX Price: $0.16 (24h change: +1.86%)
Circulating Market Cap: $138 million

Immutable X is designed specifically for gaming, providing scalability, low costs, and strong security. It promises smooth experiences for gamers with fast transactions, true NFT ownership, and interoperability across games.

Ethereum 2.0: Blessing or Challenge for Layer 2?

Ethereum 2.0 with Danksharding (especially Proto-Danksharding) is expected to boost Ethereum’s throughput to 100,000 TPS. Rather than making Layer 2 solutions obsolete, Ethereum 2.0 will foster a symbiotic relationship:

• Optimized Layer 2 Efficiency: Proto-Danksharding reduces transaction fees on Layer 2 networks, opening doors for both professional traders and newcomers.

• Seamless Integration: Better support for Layer 2 rollups will improve communication and user experience.

• Enhanced User Experience: Faster confirmations, ultra-low gas fees, and less network congestion are expected benefits.

Layer 2 as the Foundation of Blockchain’s Future

Layer 2 protocols are not just a trend for 2024—they are a pivotal step in blockchain development. From booming Ethereum Layer 2 projects to innovative Bitcoin scaling solutions, these networks are shaping the future of the crypto industry.

By addressing Layer 1 limitations, Layer 2 networks pave the way for widespread adoption, unlock new opportunities, and demonstrate that blockchain can be fast, cost-effective, and accessible to all. The journey from complex blockchain technology to an easy-to-use, fast, and affordable ecosystem is becoming a reality thanks to these Layer 2 solutions.