Horizon Network's layer 2 Solutions
- The Ethereum network has been facing problems such as slow transaction processing and high gas fees due to frequent congestion. This has been a persistent issue and there is a need for a better solution that can increase transaction speed without compromising security or imposing limits on throughput. Layer 2 solutions offer promising approaches to address the scalability challenge while maintaining the security and decentralization of the Ethereum network.
- Layer 2 solutions aim to make Ethereum work better and address its scalability issues caused by network congestion. There are different types of Layer 2 solutions, but we will focus on rollups, which have become an important component for Ethereum's scalability. We will give you a brief overview of rollups in this section.
- At the moment, we offer a Layer 2 solution at Horizon Network that uses the ZK rollup batching mechanism.
- ZK rollups are a kind of Layer 2 solution that help Ethereum scale up by using zero-knowledge proofs (ZKP) along with rollup technology. This increases the network's speed and capacity without sacrificing its security or decentralization.
- ZK rollups work by processing many transactions off-chain, separate from the Ethereum mainnet. These transactions are then combined and verified through a single zero-knowledge proof. The proof is then submitted to the Ethereum mainnet for confirmation, which reduces congestion and increases transaction processing speed.
- Optimistic rollups and ZK rollups are two different types of Layer 2 solutions for Ethereum. While optimistic rollups require the mainnet to validate transactions, ZK rollups use zero-knowledge proofs to validate transactions off-chain, maintaining privacy and security. This approach offers faster finality and lower fees, but comes with higher computational costs.