How is Layer 2 Validated?
Layer 2 solutions play a crucial role in enhancing the scalability and efficiency of blockchain networks by enabling off-chain transactions. These solutions validate transactions through various methodologies, depending on the specific type of Layer 2 technology being utilized.
1. Rollups
Rollups compress multiple transactions into a single batch, which is then submitted to the Layer 1 blockchain. There are two main types of rollups: Optimistic Rollups and Zero-Knowledge Rollups. Optimistic Rollups assume transactions are valid and only perform computation when challenged, while Zero-Knowledge Rollups provide cryptographic proofs of validity.
2. State Channels
State Channels allow participants to conduct numerous transactions off-chain, only settling the final state on the main blockchain. The validation occurs off-chain, and the final state is stored on the Layer 1 chain, minimizing on-chain transaction load.
3. Sidechains
Sidechains operate independently from the main blockchain but are connected through a two-way peg. Transactions on the sidechain are validated by its own consensus mechanism, offering flexibility and scalability.
In summary, Layer 2 solutions utilize a combination of off-chain validation techniques and cryptographic methods to ensure the integrity and validity of transactions, ultimately enhancing blockchain performance.