Second Layer Solutions: Defined & Explained
Second Layer Solutions: defined & explained.
Second Layer Solutions Defined
It’s a cryptocurrency blockchains project with a very close relationship to an older blockchains project. The usual purpose is to do something the main chain can’t do like here host tokens for communities. This can be transactional or functional. Many transactions may occur on this layer, but ultimately they are recorded on the main chain. Sometimes these second layer solutions carry out transactions faster and cheaper then the main chain. Otherwise these second layers can perform functions not possible or desirable on the main chain.
Second Layer Solutions Explained
Second layer solutions perform functional and transactional functions not possible on the main chain or perform them more inefficiently.
Second Layer Solutions Examples
Examples of second layers include:
Purpose: Functional: Function: Hosting Communities
Steem had Steem-Engine, and Steemleo was a second layer solution.
Hive has Hive-Engine, and Leo is a second layer token.
Purpose: Transactional: Performing transactions cheaper and faster
Bitcoin has The Lightening Network.
Etheteum has many second layer solutions and projects called roll ups.
The side chains perform transactions cheaper and faster.
Purpose: Functional: Hosting dApps
Binance chain has Binance Smart Chain
Binance Smart Chain hosts the Ethereum Virual Machine clone and both a smart contract level and decentralized applications like PanCake Swap.
Second Layer Solutions and Composability
Composability is remarkable
It allows the creation of critical building block functional block pieces, and the creative assembly of them into functional projects.
Composibility permits diversity
Most people think of it as a simple clone of Uniswap, but in actuality PanCake Swap is the result of Binance creating a clone of the Ethereum virtual machine on Binance Smart Chain, and a smart contract layer and then allowing dApps like PanCake Swap run on Binance Smart Chain. These dApps are actually composed of different code elements. You can run an exact of Uniswap, but also you can change features and add features to these projects to make them unique. When you look at the projects on Binance Smart Chain they reflect the creativity and other characteristics of their creator.
Question: Do they work?
I think Hive Engine works, it allows functions like tokenized communities to exist on Hive.
Hello @shortsegments
"these second layer solutions perform transactions faster and cheaper than the main chain", I had heard some basic notions about the functionality of second layer solutions before, but this thing about transactions being faster is something extraordinary as it decongests the main chain data traffic.
Best regards, be well.
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HiI am glad the article was helpful, this space is changing rapidly, and IRS hard to know it all, thanks to social media like Steemit we have eyes and ears all over the globe :)
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