What is Layer 2?

What is Layer 2?


The Layer 2 ecosystem is evolving quickly and allowing its users to experience a faster, safer, and lower-cost encryption process.  It can save up to 80% on transaction fees.  Layer 2 was created on top of the Ethereum (Layer 1) blockchain to increase its productivity, help it scale, and meet demand; Ethereum itself can only process approximately 15 transactions per second.  Think of it as an extension of Ethereum.  The main goal is to increase transaction speed and output without compromising the integrity of the platform.  The most preferred Layer 2 solution is rollups.  Rollups bundle hundreds of transactions into ONE transaction which divides the fees between everyone in the rollup; transactions are implemented outside of Ethereum but are listed within the blockchain, gaining the security.  

Layer 2 Technologies (Bridges)

Arbitrum - processes transactions through optimistic rollup.

Polygon - uses 4 different solutions: POS chain, Plasma chain, ZK-rollups, and optimistic rollups.

Optimism - as the name hints… uses optimistic rollups.

By choosing a Layer 2 network, you can deposit and withdraw between wallets and exchanges quickly and cost effectively.

Which hardware wallets support Layer 2?

imKey Pro Hardware Wallet

There are basic features of this hardware wallet that make it easy to use, which provide a long-lasting, comprehensive, and secure device.  This hardware wallet has a lithium-ion battery and is compatible with multiple types of devices.  Additionally, it provides a mnemonic phrase access pin.  Its many layers of security make it safe to transfer funds and make transactions.  

Trezor Model T Hardware Wallet

This hardware wallet has a color touchscreen for upgraded security and ease of use.  Its built-in mobile connectivity via USB-C allows you to access your cryptocurrency on the go and its magnetic dock can attach to any flat surface. 

Ledger Nano X Hardware Wallet

This is a next generation hardware wallet with its state of the art Secure Element chip that keeps the seed and private keys completely offline; you’ll never have to worry about the remote hacking risks of software wallets and exchanges.  Plus, it is one of the only hardware wallets that is compatible with both iOS and Android mobile devices.

With these hardware wallets, you can have peace of mind knowing that your Ethereum is secure and can be transacted through Layer 2 for a quicker and more cost effective transaction.

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