Investor’s Guide to Layer-2s 🤑
Key Takeaways:
✅ A Layer-2 (L2) protocol is a secondary framework built on top of an existing, more secure blockchain network to make it more accessible.
✅ They enhance transaction efficiency by offloading the process from the main chain and have close similarities to the SWIFT messaging network in TradFi.
✅ Investors can invest in the tokens of these Layer-2 projects, which they can hold or stake to identify the long-term winners.
✅ While we may often think of blockchain as a singular technology, it is actually layers of technology working together.
✅ Layers aren’t ideal. Once we start getting to higher levels, we are, in most cases, compensating for a lack of scalability with the underlying chain. They’re a hack.
In this guide, we’ll explain what Layer-2s are and how investors can think about the ultimate winners of the Layer-2 race so you can invest in today’s tokens that are most likely to win in the long term: https://lnkd.in/dYBxpFGR
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