Quick Review: Blockchain Layer Two Solutions Explained

this week I'm going to be sharing with us about um layer tools basically very popular them in web 3 on blockchain Space generally but not so many people understand the [Music] [Applause] concept so you all agree with me that blockchain is an amazing technology taking um ethereum into case study but there's a very big problem that blockchains face which is a trma problem um we've not found a single blockchain that can solve all three the first one is the problem of decentralization security and scalability character of a full blockchain is um it must be secured decentralized and also be scalable the as we all know has been able to you know solve the problem of decentralization and security but it's not very scalable here in comes the birth of layer two solutions Layer Two Solutions are solutions that built on the layer one when I say layer one I'm talking about the based blockchain like ethereum and Bitcoin so just like saying you have a layer one and you bu put a solution if you build a protocol on top it so this um Solutions this technology this protocol they are meant to to address problem on layer one so basically layer ones are just um ethereum um uh Bitcoin basically Le Solutions are blockchain based solutions that help ethereum to scale basically there are many different types we have um one of the very popular L tools polygon which is um a side chain we have um optimistic um ethereum which is an optimistic roll up we have many others we have bar chains we have zero knowledge um we have two types of ler two solutions we have the optimistic rollups and the ZK rollups what rups do is they bundle up transaction and then they submit the finality to um to to the to the main to the layer one so optimizing uh rollups basically allows spart Contra to be execute of chain why uh zero knowledge um allow private improve the Privacy when transaction is being verified without revie any senstive data how it does that is that it's kind of like abstract um requests and you know it's kind it's like an abstract Network that uh receives um request as well and then batches it up I'm using either zero knowledge or of the optimistic followups so and then later on sends it to the layer one solution so first and foremost when you run a transaction in stet it first goes through the sequencer so the sequencer just groups all the transactions badge them together they can badge as many transactions thousands of transactions as possible so after he bches the transactions through the sequencer the sequencer sends this transactions to the approver the prover then generates a proof in the layer two and then he sends that proof to a Smart contract in the layer one which is ethereum and then this smart contract in layer one is called a verifier contract so it verifies that that proes really exist in the layer two after it verifies that then it saves the information in the stack net cor contract in ethereum layer one so this is how stack Nets are able to achieve scalability