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Five promising Layer-2 projects in crypto, according to a prominent investor

Tanja Nechet

News editor

Nov 1, 2022 at 05:56

Crypto investing is not just about buying tokens and NFTs and reselling them. It is possible to invest in various projects, counting on a long-term perspective. And if a bet is made correctly, thousands of dollars spent today can turn out to be $10,000 in a few years. The main thing is to be able to see the potential in time and direct your eyes there. 

Lady of Crypto, a popular crypto investor and trader, shared on her Twitter, a list of five Layer-2 (L2) crypto projects that could climb to the top. 

What are L2 projects?

Layer-2 (L2) is a network or channel that is on top of a Layer-1 (L1) network, such as Bitcoin or Ethereum. L2 is designed to increase the speed and reduce the cost of executing transactions on the blockchain. 

Layer-2 projects publish their transaction data on the L1 network, relying on their data availability. This data can be used to obtain information about the state of Layer-2 or to challenge Layer-2 transactions.

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Perspective L2 projects

So what projects did the Lady of Crypto list, and why did she like them?

Polygon (MATIC)

Polygon effectively turns Ethereum into a complete multi-chain system (i.e., Blockchain Internet) that is similar to Polkadot, Cosmos, Avalanche, etc., but with all the benefits of Ethereum: security, vibrant ecosystem, and transparency. On November 1, the value of tokens dropped noticeably (from $0.90 to $0.88). So if you also believe in the idea of Polygon’s bright future — go for it.

MetisDAO (METIS)

If you at least sometimes visit our beautiful site, you have already met this name more than once. The project is increasingly praised, so the price of tokens is relatively stable over the past 7 days (and around $29-30). But at the time of publication of this article falls. The most popular exchanges for trading MetisDAO are MEXC, XT.COM, OKX, and BingX.

Building on the spirit of Optimistic Rollup, Metis creates an easy-to-use, highly scalable, inexpensive, and fully functional Layer-2 framework (Metis Rollup) to support application and business transitions from Web2 to Web3. Its scalable protocol supports a wide range of use cases, including NFT platforms, decentralized social platforms like Reddit, open-source developer communities, influencer communities, gaming communities, freelance communities, crowdfunding, farming, trading on DEX, and more.

Metis integrates the Decentralized Autonomous Company (DAC) framework into its Layer-2 infrastructure, making it easy for any developer or community leader to build their apps and communities. 

Arbitrum

The Arbitrum network is being mentioned more and more in the media and by bloggers. It was developed by New York-based Offchain Labs, which seeks to solve the problem of Ethereum network congestion by improving the confirmation process of smart contracts.

Arbitrum does not currently have its token. But the network can be accessed through GMX and Dopex, Arbitrum’s two leading protocols. GMX is a decentralized futures exchange and Dopex is a decentralized options exchange. Their control tokens are charged with fees generated by the protocols.

StarkNet (STARKNET)

StarkNet is a decentralized Validity-Rollup (also known as ZK-Rollup) project aimed at improving Ethereum scalability, mainly through the use of Level-2 chains. Rollups are the most popular way to address blockchain scalability, and there are two main categories: Optimistic Rollups (ORU) and ZK-Rollups (ZKR). Both of these categories work by executing transactions off-chain and then placing them into L1 as a consolidated packet. 

This L2 project allows any dApp to achieve unlimited scale for its computation – without compromising Ethereum’s composite or security, thanks to StarkNet’s reliance on a proof-of-concept cryptographic system STARK. 

StarkNet contracts and the StarkNet OS are written in the Cairo language.

The StarkNet token is needed to manage, maintain and secure the ecosystem, make decisions about its values and strategic goals, and manage its growth. It appeared in September and has been distributed mostly to investors and contributors.

Aurora (AURORA)

Aurora helps Ethereum users and decentralized applications migrate to the NEAR blockchain. The underlying Aurora token is ETH, providing a better user interface and familiar developer tools.

And the AURORA is a governance token that provides proper protocol updates. Aurora is managed by AuroraDAO, which includes members from various ecosystems and sectors of the blockchain industry. AURORA’s current price is $0.737545. Since the end of October, there has been a drop in value.

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