L2

Question 1

OMG Network

Answer 1

a non-guardian layer-two scaling solution for Ethereum

Question 2

Why did the OMG Network essentially die?

Answer 2

other Etherem layer-two scaling solutions like Arbitrum and Polygon were drawing in more demand and managed to build functioning ecosystems

Question 3

ORU

Answer 3

I think stands for optimistic rollup

Question 4

Sharding

Answer 4

An attempt to avoid that “every single computer in the network has to validate every single transaction

Question 5

List the ethereum l2 scaling solution categories

Answer 5

1) rollups 2) plasma 3) state channels 4) sidechains 5) hybrid solutions 6) validium

Question 6

(As of apr 2021) list the main current downsides of l2 scaling solutions

Answer 6

1) They break the composability of DeFi, arguably the most powerful aspect of DeFi. As of apr 2021 dapps on one L2 can’t communicate with apps on another L2
2) they split liquidity between each chain 3) on boarding/off boarding friction (polygon withdraw time takes ~15 minutes) and Optimism has a hypothetical 1-2 week on boarding time

Question 7

Why has TPS become irrelevant in the context of rollups?

Answer 7

It’s because of how rollups compress data. So in ZKRs you can have 10 people making a million trades between them on a DEX. But from Ethereum’s perspective it’s only 10 transactions due to the compression. Also you get 1 million TPS for the price of 10 :) [ does it actually count as 10 or 10*9/2?]

Question 8

The monolithic blockchain trilemma

Answer 8

higher throughputs necessarily mean lower security and/or decentralization

https://polynya.medium.com/rollups-data-availability-layers-modular-blockchains-introductory-meta-post-5a1e7a60119d

Question 9

List the Big Four ETH contract smart Rollup chains

Answer 9

Arbitrum, Optimistic Ethereum, zkSync 2.0 and StarkNet

https://polynya.medium.com/the-big-four-smart-contract-rollup-chains-arbitrum-optimistic-ethereum-zksync-2-0-and-starknet-b7ecbb773f40

Question 10

According to polynya what is the biggest shift in the blockchain industry since the release of ethereum smart contracts in 2015?

Answer 10

Rollups

Question 11

How to gain investment exposure to a Rollup currently?

Answer 11

Invest in the l1 that the rollup uses, or invest in protocols that launch to the rollup

Question 12

L2beat

Answer 12

an analytics and research website about Ethereum layer two (L2) scaling

Question 13

L2beats narrow definition of l2

Answer 13

“We define layer two as a chain that fully or partially derives its security from layer one Ethereum so that users do not have to rely on the honesty of L2 validators for the security of their funds.”