Best Layer 2 Protocols for Koinly

Next generation layer 2 for Ethereum DApps. Scale your dApp with your favorite tools at the lowest possible cost. An aggregator is the same role as a node in Ethereum. Client software can make remote procedure calls (RPCs), to an aggregator using the standard API to interact with an Arbitrum network. The aggregator will then call the EthBridge to produce transaction results to the client just like an Ethereum node. Although it is common for clients to use an aggregator to submit transactions to an Arbitrum Chain, this is not mandatory. There is no limit to the number of aggregators that can exist or who can be an aggregater. In order to improve efficiency, aggregators often combine multiple client transactions into one message that can be submitted to Arbitrum. Arbitrum also supports a privileged Sequencer, which can order transactions and provide low latency transaction receipts.

Polkadot, a blockchain network, is being built to enable Web3.0. This will allow users to control their data and ensure that markets benefit from network efficiency. Gavin Wood, a former co-founder and CTO at Ethereum, founded Polkadot in 2016. Polkadot's technology solves the major problems that have hindered blockchain adoption over the past few years. Parity Technologies created Polkadot's Substrate software development toolkit that allows blockchain developers to create their own custom, fit for use blockchains. Polkadot allows multiple blockchains to communicate with each other, allows for easy upgrades, and introduces "shared Security", a plug and play network security model that allows developers focus on the technology instead of spending time and resources recruiting operators to run a new Blockchain.

ChainX, the first project to be launched in the polkadot ecosystem.ChainX is dedicated to the research, application and development of Bitcoin layer 2, digital asset gateway, and Polkadot second layer relay chain. To realize cross-chain asset exchanging, ChainX will be leading the new direction of Bitcoin Cross -DEFi. The key to the digital currency market is Bitcoin, which has a market capitalization of US$1 Trillion. Its value proposition allows for further and deeper blockchain technology breakthroughs. This validates Bitcoin as a payment option and a superior method of transferring and storing values. Many believe we have only seen the tip. ChainX is committed to the research and expansion of Bitcoin's Layer2 financial platform. We strive to increase Bitcoin's value flow and enrich financial derivative opportunities.

The new scalability stack to Ethereum. Instant transactions and scalable smart contract. Optimism (PBC) is a for-profit corporation that produces a public benefit while also operating in a responsible, sustainable manner. This means that we have to balance the stockholders' interests with the best interests for those who are most affected by our conduct. We also have a "public benefit charter" that we were incorporated with. The Company's specific public benefit purpose is to increase and enshrine fair internet access through the development open-source software. This charter is our promise to the Ethereum community that we will uphold its values and produce infrastructure that promotes the growth of an ecosystem of public good.

Omni is a platform that allows you to create and trade custom digital assets and currencies. It is a software layer that is built on top the most trusted, most audited and most secure blockchain, Bitcoin. Omni transactions are Bitcoin transactions that enable the next-generation features of the Bitcoin Blockchain. The reference implementation of Omni Core, an enhanced Bitcoin core, provides all the features and advanced Omni Layer features. It's easy to create tokens that can be used to represent assets or currencies, and then transact them via the Bitcoin blockchain. Omni is the most popular Bitcoin-based token protocol due to its simplicity and power. Omni makes it easy to decentralize crowdfunding. Crowdsale participants can send tokens or bitcoins directly to an address. The Omni Layer then automatically delivers the tokens to the sender in the return. This is all without the need to trust a third-party.

Polygon (previously Matic Network), is a protocol and framework that allows you to build and connect Ethereum-compatible blockchain networks. Although Ethereum is the preferred blockchain development platform, it has its limitations. Polygon - A protocol and framework for building and connecting Ethereum compatible blockchain networks. Preset blockchain networks can be deployed in one click. A growing number of modules are available for the development of custom networks. Interoperability protocol to exchange arbitrary messages with Ethereum or other blockchain networks. Modular and optional security as a service. Modules for adaptors to enable interoperability with existing blockchain networks. Polygon brings together the best of Ethereum, sovereign and other blockchains in an attractive feature set. For developers.