All Layer-2 blockchains have been built up as scalable alternatives to their source blockchains. They perform to resolve severe burdens saving cost and time for all the activities on the parental blockchain. Especially, Lightning network, ZK rollups, and optimistic rollups have boosted an uptick in adopting L2 solutions.
The year 2021 has seen rapid growth in L1 ecosystem yet there were equivalent challenges in terms of complaints related to gas fees, scalability issues, and transaction processing. As L2 ecosystem, especially Polygon has shown exponential growth as it has used ZK rollups and other solutions to counter challenges faced by L1.
How Layer-2 Is Going to Prosper in 2022?
A recent buzz that is rounding the market is that the L2 ecosystem will experience a growth at a brisk rate than that of L1s in 2022. The first half of 2022 will be more focused on Ethereum L2s, where they can have significant growth. ETHs L2 will start to take a perfect shape, new projects begins to introduce natively on L2. The tokens based on L2 become a prominent trade in 2022.
Comprehensive ZK–rollups may start to appear, captivating the traction of a larger user base by late 2023. L2 project will start to introduce tokens to encourage adoption, exchanges will deploy deposit/withdrawals instantly to L2s, and ETH foundation layer transactions will be scarce for average users. Interestingly, L1 protocols that have shown monumental growth in 2021 would now have to face head-on competitions with the L2 protocols.
Polygon (Matic) that is ahead of the game in deploying L2 solutions would become the leader of the ecosystem by 2022. For instance, the platform has acquired a Mir protocol for $400 million that scales up the Ethereum blockchain with increased transaction speed and low cost. In subsidiary, the community has given a warm welcome to the roll-up as the protocol experienced colossal gains.
Collectively, between the tug war for layer-2 solutions, ZK-roll ups gain more momentum winning out over-optimistic roll-outs. Further, cross-chain bridges will continue to stockpile higher TVL as capital investment swells to the Layer-2 ecosystem. Matic is expected to become a game-changer for the ecosystem with massive gains throughout the year.