New Ethereum L2s - A Top 5 List

Summary

• Layer 2 Ethereum solutions offer faster transactions, reduced fees, and higher scalability.
• Celo simplifies crypto adoption with phone numbers as keys, offering lightning-fast transactions and high throughput.
• Starknet, developed by StarkWare, optimizes Ethereum's scalability with high throughput and minimal gas costs.
• Shibarium focuses on Shiba Inu, promising a 10,000 TPS boost and reduced gas fees.
• Linea's fully EVM equivalent zk-rollup offers cost-effective scalability and developer-friendliness.
• Mantle Network efficiently processes transactions on Ethereum with high security and scalability.

Layer 2 (L2) solutions have emerged as potent game-changers, orchestrating a transformation redefining the entire blockchain landscape. These solutions have set their sights on Ethereum, a cornerstone of the crypto world, and other Layer 1 (L1) blockchains, aiming to address fundamental challenges like scalability, transaction speed, and cost.

The Genesis of Layer 2 Solutions

Layer 1 blockchains faced a blockchain trilemma – a challenging trade-off between security, scalability, and decentralization. In their quest for security and decentralization, scalability took a back seat, leading to sluggish transaction speeds during peak network traffic.

Layer 2 protocols operate on top of Layer 1 blockchains, enhancing the network's capacity to handle a massive influx of transactions. 

Here, we will look deep into five of Ethereum’s Layer 2 solutions to understand their capabilities and how they are poised to redefine the future of blockchain. 

Top Five Recent Ethereum Layer 2 (L2) Networks

1. Celo Linea: Bridging the Gap with Accessibility

Celo, a layer-2 blockchain protocol, is on a mission to simplify crypto adoption by introducing phone numbers as public keys and launching a native stable-value token. Through its native assets, CELO and Celo Dollars (cUSD), users can engage in the network consensus, pay for on-chain transactions, and participate in governance decisions. 

What sets Celo apart is its lightweight identity protocol, enabling seamless transactions using phone numbers and making it accessible to a global user base. With a fast ledger closing time of five seconds and an impressive transaction throughput of 1,000 transactions per second, Celo Linea is at the frontier of accessibility and efficiency.

2. Starknet: Optimizing Ethereum's Scalability

Developed by StarkWare, Starknet represents a Layer 2 Validity Rollup that combines high throughput and minimal gas costs with Ethereum's Layer 1 security. Starknet achieves this by replacing heavy Layer 1 computation with lightweight and cost-effective Layer 1 verification through STARK proofs. This approach ensures that Ethereum's core security remains intact while vastly enhancing its scalability. 

It's worth noting that Starknet isn't just another ZK rollup; it introduces its unique programming language, Cairo, tailored for cost-efficient smart contract development. With peak transactions per second hitting a record high of 126, Starknet is pushing the boundaries of Ethereum's capabilities.

3. Shibarium: Empowering Shiba Inu and Beyond

Shibarium is Ethereum's Layer 2 solution exclusively designed for Shiba Inu. Promising to boost transaction speeds by a staggering 10,000 transactions per second, Shibarium aims to eliminate the persistent issue of high gas fees on the Ethereum network. 

By significantly reducing fees and enhancing throughput, Shibarium aims to revolutionize the Shiba Inu ecosystem while making blockchain transactions more cost-effective and accessible for all users.

4. Linea: The EVM Equivalent Revolution

Linea introduces a fully EVM equivalent zero-knowledge rollup (zk-rollup) designed to scale Ethereum with improved throughput and reduced transaction fees. It achieves transaction fees that are 15-20 times cheaper than Ethereum's mainnet, making it a cost-effective choice. 

Linea is developer-friendly, offering native support for tools like MetaMask, Truffle, and Infura. Moreover, its EVM equivalence means that developers can seamlessly migrate code from Ethereum, providing a familiar environment for users and developers.

5. Mantle: Scaling Ethereum's Horizons

Mantle Network emerges as an Ethereum Virtual Machine (EVM)-compatible Layer-2 scaling solution powered by Optimistic rollups. It efficiently processes transactions off-chain while ensuring that all transactions are settled on-chain. 

Despite being relatively new, Mantle has garnered significant interest from the crypto community, attracting protocols like Multichain, Synapse, Pyth, and Ankr, with Multichain already live on their testnet. With a potential $200 million ecosystem fund on the horizon, Mantle Network aims to enhance Ethereum's scalability without compromising security, making it a transformative player in Layer 2 solutions.

The Future of Ethereum Layer 2 Solutions

The cryptocurrency ecosystem is no stranger to competition, and Ethereum Layer 2 blockchains are no exception. In fact, this competition is the driving force behind the continual evolution and improvement of these networks. With each new entrant comes fresh technologies, innovative ideas, and enhanced user experiences. As a result, investors and users alike can look forward to a dynamic and flourishing ecosystem.

However, Layer 2 solutions are not just an investment in technology; they are an investment in the future. With the competition driving continuous improvements and innovations, these networks are set to redefine the blockchain industry.