Ethereum competes with different chains like Solana or BNB Chain, thanks largely to its layer-2 options.
In reality, whereas the layer-1 of Solana and BNB Chain don’t require layer-2 options on account of their very quick and cost-effective transactions, Ethereum’s layer-1, alternatively, wants layer-2 to compete on equal footing in these facets.
An important Ethereum layer-2 options are Arbitrum, Base, Optimism, Polygon, zkSync Period, and Starknet.
These are totally different options primarily based both on simply implementable rollups or on safe and quick zero-knowledge (ZK) protocols.
Arbitrum
Arbitrum is the main layer-2 of Ethereum for adoption and liquidity.
It was developed by Offchain Labs and has reached a DeFi TVL of roughly 3 billion {dollars}.
It’s a 100% EVM-compatible layer-2, permitting builders emigrate dApps from Ethereum while not having to make any modifications.
Particularly, Arbitrum One handles as much as 40,000 theoretical transactions per second, with a sustained common of 1,600 TPS and common prices of $0.08-0.10 per transaction. Arbitrum Nova, optimized for gaming and NFTs, additional reduces prices to fractions of a cent.
On Arbitrum, there are already over 500 DeFi protocols hosted, similar to Uniswap, Aave, and GMX, along with NFT marketplaces and video games.
The principle benefits are excessive liquidity, ease of growth, and seamless integration with Ethereum. Nevertheless, it’s barely slower in comparison with ZK-rollups.
Base
Probably the most well-known layer-2 options is Base, because it was developed by the large Coinbase.
That is an optimistic rollup launched in 2023, constructed on the OP Stack like Optimism, however managed independently.
Recently, it has surpassed Arbitrum in DeFi TVL, additionally because of its 4.2 million weekly energetic customers.
It handles extra transactions than another layer-2 on Ethereum (as much as 3.5 million per day), with common sustained TPS between 220–350.
The common price per swap on Uniswap ranges between $0.04 and $0.07, making it very interesting.
With Coinbase backing it, it has skilled sturdy adoption, and on condition that it features very nicely technically, it’s prone to keep sturdy utilization.
The benefits of Base embody very simple onboarding, extraordinarily low and steady charges, in addition to excessive liquidity on Aerodrome and direct integration with the Coinbase app.
Nevertheless, it stays centralized within the sequencer, managed by Coinbase, and inherits any future vulnerabilities of the Optimistic Rollup.
Optimism
Optimism is a pioneer of optimistic rollups, because the undertaking was based in 2019.
In actuality, it’s not designed solely to scale Ethereum, however relatively a whole “Superchain” of associated chains, to facilitate interoperability.
It reaches a most of two,500 TPS, with a mean of 130 TPS and common charges of $0.12. The block time is 200 milliseconds, and it has processed a complete of two.47 billion transactions.
Over 200 dApps are working on Optimism, however its DeFi TVL has dropped considerably not too long ago.
The benefits of Optimism are EVM compatibility, sturdy group help, and low entry-level prices.
Nevertheless, 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 exceeding one billion {dollars}, however over time it has misplaced some floor to Arbitrum and Base.
Exceeds 65,000 theoretical TPS, with charges of solely $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 principle benefits are excessive scalability and interoperability with different chains, together with a mature ecosystem. Nevertheless, it’s considerably extra complicated for primary customers to navigate.
It’s primarily used for gaming and NFTs, the place quantity issues greater than fast goal.
zkSync Period
zkSync Period is essentially the most revolutionary layer-2 on Ethereum.
Helps as much as 20,000 TPS, however with charges lower than a cent and finality in just a few seconds because of SNARK proofs.
It already hosts over 200 dApps, with a specific emphasis on DeFi and funds.
It’s primarily used for funds and privacy-focused apps, however it’s also performing very nicely by way of liquidity and cross-chain interoperability.
The benefits are fast finality, extraordinarily low transaction charges, and built-in privateness, however it’s nonetheless not mature sufficient for complicated dApps.
Starknet
Starknet achieves a theoretical throughput of thousands and thousands of transactions per second because of STARK.
Presently, it has a most of 4,200 TPS, 2,600 sustained, charges of solely $0.01, and on the spot finality. Nevertheless, it’s not totally EVM-compatible.
Nevertheless, there are nonetheless not many dApps utilizing it, so its ecosystem stays restricted.
Its particular 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 to Select
Arbitrum and Optimism provide stability, Polygon versatility, and Starknet potential future developments.
Particularly, Arbitrum and Base dominate by way of basic adoption, whereas Optimism leads for group and Polygon for quantity. zkSync, alternatively, 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 can be utilized in an interconnected method with one another.
It must be famous, nevertheless, that it’s attainable that ZK rollups like zkSync and Starknet might proceed to chip away on the market share of optimistic rollups, because of on the spot finality and even decrease prices.
Nevertheless, it could possibly be the “Superchain” of Optimism and Base to problem Arbitrum’s dominance.
For retail merchants or memecoin degens, the only option is perhaps Base.
For DeFi builders, Arbitrum is healthier.
For gaming or NFTs, there’s Polygon, whereas for privateness and on the spot funds, there’s zkSync Period.
Starknet stays for individuals who need to create very complicated functions.
