The Impact of Layer 1 vs. Layer 2 Solutions on Crypto Investments

2024-11-04T20:41:34+05:30

Cryptocurrencies have revolutionized the way we think about money and finance. With the rise of blockchain technology, digital currencies have become increasingly popular as an investment Stock Wave AI option. However, as the crypto market continues to evolve, new challenges and opportunities have emerged, particularly in the form of Layer 1 and Layer 2 solutions. Layer 1 solutions refer to the base protocol layer of a blockchain network. This is where the fundamental consensus mechanism and rules of the blockchain are defined. Layer 2 solutions, on the other hand, are built on top of Layer 1 and aim to improve scalability, [...]