1
Trade-offs: Scalability vs. Decentralization in DeFi Layer 2 Solutions
2
Layer 2 solutions address Ethereum’s DeFi scaling challenges.
3
Hybrid approaches pave the way for enhanced DeFi scaling solutions.
Decentralized finance (DeFi) built on blockchains like Ethereum has exploded in popularity over the last few years. DeFi aims to recreate traditional financial services that are decentralized using smart contracts and cryptographic protocols. However, as DeFi applications grow, they increasingly face scaling challenges on Layer 1 blockchains like Ethereum. Transaction speeds are slow and transaction fees are high due to blockchain congestion.
Layer 2 scaling solutions are being actively developed and adopted to help DeFi protocols overcome these limitations and achieve faster transaction throughput, lower fees and a better user experience. Layer 2 refers to protocols built on top of an existing blockchain to enable faster and cheap
We współpracy z: https://www.thecoinrepublic.com/2023/10/02/scalability-solutions-layer-2-for-defi-applications/
