Digital Cash

Layer 2 blockchains on Cardano

“Layer 2” is the name for blockchain technologies that use the core “Layer 1” blockchain as its root of trust, but move their transactions onto a completely new blockchain layer. So a new blockchain called, say, “Dave’s Blockchain” that operates as a Layer 2 blockchain on top of the Cardano Layer 1 blockchain. That new blockchain can be optimised for things like speed, scaling, transaction cost, etc, but with its security and verifiable transaction history assured by its link into the super secure Layer 1 root blockchain.

For some blockchains, most notably Ethereum and its layer 2’s like Polygon, a primary need for layer 2’s is to address and try to work around significant issues with the core Layer 1 blockchain design. With Cardano, its Layer 2 Hydra and sidechain technologies don’t have those Achilles heels and instead are just focused on allowing the blockchain to scale for use by billions of users and be perfectly optimised for any specialised use case.

You can find more info over on the Cardano Layer 2’s section of  our Where to go next page