The Best Layer-2 Networks Compared

Ethereum competes with different chains reminiscent of Solana or BNB Chain, largely because of its layer 2 options.

Whereas Solana and BNB Chain’s layer-1 don’t require layer-2 options because of their very quick and cost-effective transactions, Ethereum’s layer-1, then again, requires layer-2 to compete on an equal footing on these facets.

The primary Ethereum Layer-2 options are Arbitrum, Base, Optimism, Polygon, zkSync Period and Starknet.

These are completely different options which can be primarily based on simply implementable rollups or on safe and quick zero-knowledge (ZK) protocols.

Arbitration

Arbitrum is Ethereum’s main layer 2 for adoption and liquidity.

It was developed by Offchain Labs and has reached a DeFi TVL of roughly $3 billion.

It’s a 100% EVM suitable layer-2, permitting builders emigrate dApps from Ethereum with out having to make any adjustments.

Particularly, Arbitrum One processes as much as 40,000 theoretical transactions per second, with a sustained common of 1,600 TPS and common charges of $0.08-0.10 per transaction. Arbitrum Nova, optimized for gaming and NFTs, additional reduces prices to fractions of a cent.

Arbitrum already hosts greater than 500 DeFi protocols, reminiscent of Uniswap, Aave and GMX, along with NFT marketplaces and video games.

The primary benefits are excessive liquidity, ease of improvement and seamless integration with Ethereum. Nonetheless, it’s barely slower in comparison with ZK rollups.

Base

Some of the well-known Layer-2 options is Base, because it was developed by the enormous Coinbase.

That is an optimistic bundle that launched in 2023 and, like Optimism, is constructed on the OP Stack however is independently managed.

Currently, Arbitrum has surpassed TVL in DeFi, thanks partially to its 4.2 million weekly lively customers.

It processes extra transactions than every other layer 2 on Ethereum (as much as 3.5 million per day), with a median sustained TPS between 220 and 350.

The common payment per swap on Uniswap ranges between $0.04 and $0.07, making it very engaging.

With Coinbase’s assist, it has skilled robust adoption, and on condition that it’s technically very properly functioning, it can possible proceed to be closely used.

Base’s advantages embody extraordinarily simple onboarding, extraordinarily low and secure charges, in addition to excessive liquidity on Aerodrome and direct integration with the Coinbase app.

Nonetheless, it stays centralized within the sequencer, managed by Coinbase, and inherits any future vulnerabilities from the Optimistic Rollup.

Optimism

Optimism is a pioneer within the area of optimistic rollups, because the challenge was based in 2019.

In actuality, it’s not designed solely to scale Ethereum, however reasonably a whole “Superchain” of associated chains, to facilitate interoperability.

It reaches a most of two,500 TPS, with a median of 130 TPS and common value of $0.12. The block time is 200 milliseconds and a complete of two.47 billion transactions have been processed.

Greater than 200 dApps run on Optimism, however the DeFi TVL has dropped considerably not too long ago.

Optimism’s advantages embody EVM compatibility, robust group assist, and low value of entry.

Nonetheless, it’s much less used and fewer liquid than Arbitrum.

Polygon

Polygon was one of many layer 2 options with the best potential.

It nonetheless has a DeFi TVL of over a billion {dollars}, however has misplaced some floor to Arbitrum and Base over time.

Exceeds 65,000 theoretical TPS, with a value of simply $0.01 and a affirmation time of two.1 seconds. It helps each Proof-of-Stake and ZK rollup for superior safety.

Hosts varied dApps, with a specific emphasis on NFTs and gaming.

The primary benefits are excessive scalability and interoperability with different chains, together with a mature ecosystem. For fundamental customers, nonetheless, navigation is a bit more advanced.

It’s primarily used for gaming and NFTs, the place quantity is extra necessary than the fast objective.

zkSync period

zkSync Period is essentially the most revolutionary layer-2 on Ethereum.

Helps as much as 20,000 TPS, however with prices lower than a cent and finality in a number of seconds because of SNARK proofs.

It already hosts greater than 200 dApps, with a specific emphasis on DeFi and funds.

It’s primarily used for funds and privacy-oriented apps, but additionally performs very properly within the areas of liquidity and cross-chain interoperability.

The advantages are quick finality, extraordinarily low transaction prices and built-in privateness, however it’s nonetheless not mature sufficient for advanced dApps.

Starknet

Because of STARK, Starknet achieves a theoretical throughput of hundreds of thousands of transactions per second.

At present it has a most of 4,200 TPS, 2,600 sturdy, value of simply $0.01 and instantaneous finality. Nonetheless, it’s not totally EVM suitable.

Nonetheless, there are nonetheless not many dApps that use it, so the ecosystem stays restricted.

The precise benefits are excessive effectivity for heavy computations and quantum-resistant safety, however the Cairo language requires studying.

Starknet excels in superior DeFi and AI blockchain.

Which layer-2 it is best to select

Arbitrum and optimism present stability, Polygon versatility, and potential future developments of Starknet.

Notably, Arbitrum and Base dominate by way of general adoption, whereas Optimism leads for group and Polygon for quantity. zkSync, then again, excels in pace and Starknet in innovation.

In actuality, the way forward for layer-2 for Ethereum is an interconnected ecosystem the place layer-1 acts as a safe ‘settler’, and all the pieces can be utilized collectively in an interconnected means.

Nonetheless, it needs to be famous that it’s potential that ZK rollups reminiscent of zkSync and Starknet might proceed to take market share away from optimistic rollups, because of fast finality and even decrease prices.

Nonetheless, it could possibly be the “Superchain” of Optimism and Fundamentals to problem Arbitrum’s dominance.

For retail merchants or memecoin fanatics, Base could also be your finest wager.

For DeFi builders, Arbitrum is best.

For gaming or NFTs, there’s Polygon, whereas for privateness and instantaneous funds, there’s zkSync Period.

Starknet stays for many who wish to create very advanced purposes.