The BEST Bet in Crypto Right Now: Layer 2s

you’ve probably is known about layer 1 blockchains like ethereum cardano terra or avalanche but there’s another type of blockchain some would debate is even better than coating 1 blockchains seam 2 blockchains these blockchains are a bit underrepresented and may offer big increases in 2022 as this industry develops coating one blockchains like ethereum allow for developers to build their own dapps through native programming languages ethereum is powered by solidity for example but recent developments from a project known as starkware now draws smart-alecky contract functionality to bed 2 blockchains this causes some to go as far as say stratum 2 blockchains will replace coating 1 blockchains due to functionality and scalability but does this mean that you should dump your solana or cardano for a mantle two alternative you probably don’t need to do anything that crazy but layer two scaling answers are a trend you utterly need to pay attention to a trend that may pay investors handsomely so let’s dive in and find some alpha in how you might be able to capitalize on this potentially explosive trend the first layer two scaling mixture we’ll talk about today are plasma bonds plasma orders were the very first layer two scaling mixture proposed initially by vitalik buterin who we are all aware of and affection and joseph poon who is the founder of the lightning structure plasma orders allow for the creation of an unlimited number of child series basically copies of the ethereum blockchain which can offload transactions from the primary chain this sounds wonderful but it isn’t all perfect plasma series have a long waiting period for consumers to withdraw their stores back to the ethereum blockchain this can take up to several days to become the displace and precisely isn’t okay for many investors this presented a major issue for the use of plasma bonds i mean you can’t call it a better engineering if it’s slower than an ach pay a more advanced scaling solution was absolutely needed and this leads us to roll-up scaling mixtures without getting too technological the latter are called roll-ups because they bundle up many different events into one think of it like you’re cleaning up the dinner table after dinner you could go back and forth arrange apart one thing at a time you know the cup then the plate then the napkin all in separate trips let’s say it makes 10 trips to clean off the dinner table or you could grab as many things as you can carry from the dinner table every journey and let’s « re saying it » simply takes you two trips to clean off everything both have the same end result but the second option was actually less undertaking this is kind of what a roll-up does a roll-up permits a network to scale while retaining the same level of security from the network there are two main types of rollups one of them is called zero knowledge rollups because some transactions happen off the blockchain in rollups there has to be a way for the ethereum chain or the blockchain network to fraud proof these transactions zk rollups use a anatomy of cryptography announced zero insight cryptography for proving transactions are valid and secure in other words no funny business zk ups are the most efficient of the two roll up scaling mixtures but they come with the downside of being least secure than the other option idealistic roll-ups which we’ll talk about in a minute what’s fascinating about zk roll up is that they actually become more efficient as the network additions more consumers it’s kind of counterintuitive this is the opposite of how a layer one blockchain works in a coating one as a structure comes more congested fasts can slow down and costs can increase if crypto mass adoption is going to happen layer one block bonds like solana and cardano and torrent which are highly scalable may eventually suffer from being overcrowded and costly as their user locate ripen everyone in crypto wants mass adoption but mass adoption poses a significant problem to the growth of the crypto industry it’s sort of a catch-2 2 here where the more beings that come the slower and less efficient the blockchains actually will be right now simply a small portion of the world squanders cryptocurrencies as cryptocurrencies let’s say this current statistic proliferates 30 -fold which i would consider to be mass adoption chains like solana and cardano will fare better than ethereum at current states however these newer general purpose blockchains is likely to be not be able to handle that additional demand this is where layer twos are now in experts like polyneia go as far as saying nearly everything needed in crypto is actually better accomplished on a rollup versus a blanket one blockchain if i were to guess i would say that a large portion of mainstream crypto adoption will come from crypto gaming as the gaming industry is already one of the biggest manufactures in the entire world far outpacing the film industry if this applies these chains in their current state would have a very hard time supporting full-scale crypto gaming however this is to be expected crypto is still a very new industry but improvements are happening back in december one of the most important revises in coating 2 technology happened when zk roll up platform starkware launched their updated protocol starknet alpha this allows makes to start building and propelling lotions directly on seam twos this is a paradigm shift in blockchain engineering and why i believe layer twos could be one of the most profitable trends in 2022 and beyond now while starkware doesn’t currently have their own token there are other layer twos who do one example is immutable x immutablex is a layer two scaling mixture for trading ethereum nfts it was developed by the company behind god’s unchained a nft trading placard game immutablex currently has a market cap of merely under 1 billion dollars however that could change at any moment given the size of ethereum immovable x could potentially be a top 20 signs at some object which is able afford it a market cap of up to 20 billion dollars i make if ethereum can get its costs figured out it’ll be hard for any other blockchain to compete that is the biggest deterrent for ethereum right now they have the ecosystem it’s just those damned costs but this isn’t the only opportunity right now two other layer twos which could potentially render vast remunerations are the protocols zk sync and loop ring zk sync is a layer 2 which offers cheaper and faster transactions at 2 000 deals per second while zk sync doesn’t currently have a token countless speculate that there will be an airdrop coming at some place in the future one style you could potentially be eligible for a zk sync airdrop we don’t know sure as shooting but if it happens you were able to receive an airdrop through connecting your metamask pouch to the zk-sync mainnet and making a transaction on the network we recognized recently with soes that airdrops can be worth up to thousands of dollars in remunerations simply from exercising a network now loopering on the other hand has a token and their clues verified some incredible gains towards the end of 2021 going from 40 pennies to precisely over three dollars while loopring now has a multi-billion dollar market cap i think it’s a good option for anyone who wants to capitalize on coating twos without taking the risks of investing in a micro-cap token of course time be careful about going in more deep on research projects after some large-scale flows in premium now that we understand zk roll ups we need to break down confident roll-ups well they’re not as fast as zk rollups the added benefit of these scaling solutions is that they render the same level of security as the ethereum prime web some say rosy rollups are the most promising way to scale ethereum with confident rollups transactions are accepted optimistically but validators then check and submit cases of fraud proof if they find anything to be incorrect lines equip blockchain scaling by processing events abroad this is referred to as moving execution to a different arena the busines data is put one over the primary bond but the transactions are not performed there on the primary series instead they’re performed on the roll-up network this means that the prime cyberspace nodes are no longer required to execute the transactions reducing their loading and the amount of work on those nodes regrettably there aren’t any rosy roll-ups which currently have tokens but two of « the worlds largest » built idealistic roll-ups right now are arbitrarium and optimism it’s rumored that our beatrim may have a token airdrop in the future as well and then we have side orders now surface bonds aren’t technically a coating two scaling answer but they fulfill some of the same goals place chains are entirely different block bonds that can support the main web of a blockchain however « theyre using » separate consensus mechanisms not secured by the layer one and don’t worry if that’s muddling a popular side chain is called polygon one of the drawbacks to side orders as vitalik buterin said is if 51 of node adventurers on polygon for instance agreed to be malevolent they could actually hack your busines and take all of your fund which is unfortunate nonetheless this is highly unlikely to happen we just can’t say it’s impossible to happen but how exactly does this work how can a blockchain building on another blockchain on ethereum this is shaped possible by using the same ethereum virtual machine this means that contracts deployed to the ethereum base layer can be immediately deployed to the side chain this is what polygon formerly known as matic does matic was a plasma scaling answer before they rebranded themselves as polygon while polygon exists as a side bond for now it actually aims to create a hub that different block chains can easily plug into overcoming some of their individual restrictions like high rewards good scalability or restriction certificate this intends polygon will be adopted by a number of different layer 2 scaling answers including plasma bonds zk roll up and rosy roll-ups they kind of do it all polygon had an explosive 20 21 going from two pennies in december 2020 to two dollars in may 2021. If you got in and maintained just for those five months you would have 100 x your investment well polygon isn’t likely to 100 x again there is still opportunity now for a potential roi in the future as well as with other layer 2 mixtures so the cryptocurrency manufacture is continuing to grow at a rapid pace brand-new investors and users are arriving every day and more programs are being built every single week that allow us to transact game and operate on blockchains and while some belief stratum twos will permanently supplant seam one block orders now that zk roll ups have smart-alecky contracts « thats still » a topic for debate in the world of cryptocurrencies and blockchains nonetheless it’s clear that blanket two scaling mixtures are a must if the industry is to continue gaining new investors because of this i have a hard time believing that layer two scaling won’t be a profitable niche to invest in nonetheless as ever you should be careful cryptocurrency is still brand new and there could be other solutions and there are always risks to investing in this space from here i would like to thank my patron of this video i trust asset i trust allows you to place your crypto in a roth pension account what this intends is you can buy sell and swap crypto and wage no asset incomes on your acquires this is amazing for speculators with a roth you offer your duty on your income upfront when putting the money in the detail but then at retirement you pay no duty once you start pulling out at 59 and a half years old this is probably the most simple way to save on all capital increases tariff i trust will be linked in the specific characteristics and if you use that link to open an accounting you’ll receive 100 in bitcoin free for join from here i recommend watching my video on the best methods to get free crypto airdrops including our sea office which we discussed earlier in this video i’ll have that pinned on the end screen here i would like to thank you so much for watching and i hope you have a profitable day