Summary of the News
- L2BEAT is a website that serves as a point of reference for Ethereum’s secondary layers.
- It offers comprehensive indicators for evaluating the performance of Layer 2 and rollup solutions.
- The main objective of Layer 2 solutions is to enhance the scalability of the Ethereum network.
- L2BEAT provides information regarding transaction throughput and Total Value Locked (TVL).
- Layer 2 solutions encompass several approaches such as Optimistic Rollups, Validium, and ZK Rollups.
- L2BEAT categorizes secondary layers according to their phases of development.
Overview
Recently, you may have come across L2BEAT, a website that serves as a reliable source of information for Ethereum’s secondary layers. The tool offers unambiguous and accurate information to assess the condition of each scalability solution. This article will examine the measures used to evaluate the real-time performance of Layer 2 and rollup systems. First, we will analyze the transactions conducted within each of these networks, followed by a discussion on the idea of TVL (Total Value Locked).
L2BEAT: Exploring Secondary Layers and Transaction Throughput
Enhancing the ability to handle increasing workloads efficiently.
The main objective of every secondary layer solution is to improve the scalability of the Ethereum network. Scalability pertains to the network’s capacity to manage higher transaction throughput. Diverse strategies, like as rollups, consolidate a substantial amount of transactions from the primary blockchain into a secondary network. By employing various cryptographic techniques, these transactions can be carried out and subsequently concluded on the primary layer with little expenses.
Quantifying Activity
L2BEAT features a specialized area that focuses on the activity and developments of different Layer 2 solutions. The primary visual sign of this activity is the throughput of each secondary layer, quantified in transactions per second (TPS). The primary chart displays the aggregated worth of TPS across several Layer 2 solutions, allowing for a comparison with the primary layer’s data transfer rate by selecting the “ETH Mainnet Transactions” checkbox.
The chart can be presented across different time intervals: 30 days, 90 days, 180 days, one year, and the maximum duration. Green diamonds represent the implementation of novel secondary layer solutions.
Various Categories of Layer 2 Solutions
Ethereum’s secondary layers encompass a diverse range of sorts. On L2BEAT, you have the option to apply a filter that will display only rollups. Rollups are a type of data that includes:
Optimistic Rollups: Transactions are inherently deemed valid, therefore earning the moniker “optimistic.” Fraud proofs have the potential to dispute a transaction.
Optimism is a widely adopted method that utilizes Optimistic Rollups to publish transaction data on the Ethereum network.
Validium utilizes validity proofs rather than fraud proofs and stores data off-chain. This leads to increased scalability but necessitates higher reliance on the data storage layer.
ZK Rollups utilize zero-knowledge proofs (ZKP) to combine many transactions off-chain, while preserving the data on Ethereum to ensure utmost transparency.
The inclusion of the “Rollups Only” selection enables the user to exclusively exhibit Layer 2 solutions that are based on rollup mechanisms. In addition, the “Stack” option provides a list of different technical solutions employed by these Layer 2s, which assists in narrowing down your choice.
Phases of Layer 2 Solutions’ Development
Classification of Progress
L2BEAT categorizes secondary layers based on three stages of advancement:
Stage 0: The proof system is currently being developed, with centralized operators having control over system updates and user funds.
Stage 1: Only authorized entities are allowed to provide evidence, while users have the ability to withdraw their funds without any intervention from the operator.
Stage 2: The proof system is accessible to all users, and system governance does not have authority over user funds.
It is crucial to emphasize that the developmental stage of a Layer 2 solution does not serve as an indicator of its overall security level.
Assessing the rate at which transactions are processed
L2BEAT offers multiple columns to quantify the transaction throughput of each solution, denoted in TPS (transactions per second). The following items are included:
Average Daily TPS: The mean number of transactions processed per day.
Maximum TPS refers to the maximum recorded average daily transactions per second.
Total Monthly Transactions: The aggregate quantity of transactions carried out within the previous month.
Percentage Change: The difference in average daily throughput compared to the preceding week.
Sources of information
Throughput can be measured using either public RPC nodes, which enable decentralized applications (dApps) to interface with the blockchain, or private blockchain APIs that are not accessible to the public.
Utilizing L2BEAT for TVL Analysis
Significance of Technical and Vocational Livelihood
Total Value Locked (TVL) is an essential measure for evaluating the level of activity in Layer 2. It denotes the aggregate value of digital assets (ETH, stablecoins, ERC-20 tokens, synthetic cryptocurrencies) that have been placed as deposits in Layer 2 DeFi protocols. TVL is a metric that measures the extent to which users have adopted, used, and provided liquidity to the secondary layer. It serves as an indicator of the level of confidence that users have in the system. L2BEAT provides the capability to display Total Value Locked (TVL) in both United States Dollars (USD) and Ethereum (ETH).
Types of TVL
TVL stands for Technical and Vocational Livelihood. There are various types of TVL programs available, which focus on providing practical skills and knowledge in certain fields. These programs aim to prepare individuals for employment in industries such as agriculture,
Canonical Total Value Locked (TVL) refers to the tokens that are securely held on the primary layer of a blockchain network and are represented as IOUs (I Owe You) on Layer 2.
External Total Value Locked (TVL): Assets from other primary layer blockchains such as Bitcoin and Avalanche are secured in Layer 2 through the use of bridges.
Native TVL refers to tokens that are natively issued on Layer 2, which includes omnichain tokens that are deployed on many blockchains.
In conclusion
L2BEAT is a crucial instrument for examining different Layer 2 solutions for Ethereum. Featuring data from 58 distinct secondary layers, this interface presents a lucid and easily comprehensible design. It includes succinct explanations for every metric and phrase employed.
FAQ
Q: What is L2BEAT?
A: L2BEAT is a reference site for analyzing Ethereum’s secondary layers, providing detailed metrics to assess Layer 2 and rollup solutions.
Q: What is the primary goal of Layer 2 solutions?
A: The primary goal is to improve the scalability of the Ethereum network by increasing transaction throughput.
Q: What are the different types of Layer 2 solutions?
A: Types include Optimistic Rollups, Validium, and ZK Rollups, each with unique characteristics and advantages.
Q: How does L2BEAT classify secondary layers?
A: L2BEAT classifies them into three development stages: Stage 0 (under development), Stage 1 (whitelisted proofs), and Stage 2 (open proofs).
Q: What is Total Value Locked (TVL)?
A: TVL is the total amount of digital assets deposited in DeFi protocols on Layer 2, indicating user adoption, usage, and liquidity.
