- ETH is the second-most common crypto coin in the world.
- Layer 2 is a type of blockchain.
- The bridging of tokens to Layer 2 on the Ethereum platform makes the transactions faster and at lower costs.
The bridging of tokens to the Layer 2 blockchain is important for Ethereum. It is one of the most popular and used cryptocurrencies globally. Hence, there are many transactions happening on this platform. So, the transaction process should be feasible and easy. Layer 2 provides the factors of high speed and low cost during transactions.
What Is Ethereum?
Ethereum is a decentralized blockchain technology-based platform. It can be used in the digital technology world to pay for tangible services and goods. It is secure, programmable, and scalable, and it supports smart contracts, which are an essential tool behind decentralized applications. ETH is considered an integral part of DeFi (Decentralized Finance), the metaverse, NFTs, and DAOs. It was launched in 2015 by Vitalik Buterin and Joe Lubin (founders of ConsenSys, a blockchain software company) but was first introduced in 2014 by Vitalik Buterin.
It is based on blockchain technology It has three major properties, which are distribution through duplication, cryptography, and openness. Distribution and openness say that the data is accessible to everyone; it gets duplicated from one computer to another. Blockchain is structured through blocks, and blocks can be of any size based on the type of blockchain. The ‘value’ of the block depends on the data of the blockchain for which it is used to record.
What Is Layer 2?
These are basically protocols that run on blockchains such as Bitcoin or Ethereum. These improve privacy, scalability, and other characteristics. These help to address the scalability limitations of blockchains. These can reduce gas fees and increase transaction speeds while maintaining decentralization and the same security measures. These are able to process thousands of transactions per second. The most common Layer 2 solutions are optimistic rollups, state channels, zero knowledge roll-ups, plasma, side chains, and state channels. Layer 2 plays an important role in improving scaling.
Bridging of Tokens to Layer 2
There are six basic steps to bridge tokens to Layer 2 in Ethereum;
- Choose a layer 2 network.
- Connect to the bridge with your wallet.
- Specify the amount and move the funds.
- Confirm the transaction in your wallet.
- Wait for your funds to be moved.
- Add the selected layer 2 network to your wallet.
Users can use dApps to make transactions at a lower rate and faster in the Ethereum ecosystem. Some bridges work with Ethereum only, whereas others are multichain. MetaMask, a popular wallet, can be used to bridge tokens. There is a need to add a sufficient amount of ETH to the Ethereum wallet to cover the desired amount and gas. Layer 2 is less congested than Layer 1 and it is a separate blockchain that extends Ethereum.
Conclusion
Hence, there is a huge need for bridging tokens to Layer 2, as it helps to reduce congestion and costs on Ethereum by processing many more transactions at lower fees. These Layer 2s also enable us to transact with decreased costs and increased speed.
