In recent times, it is so exorbitant to send transitions on chains. Under $20 is the average cost for sending an Ethereum transaction. Also, as the network becomes congested, complex smart contacts like those found in decentralized finance protocols can easily run over $100 and for faster, less expensive transactions and to lighten the load, layer tow solutions are apt protocol for that.
Layer two are technology that yet to be fully implemented and they are also disruptive as reported by Aave Kulechov.
Kulechov further opined that:
“Lots of these [layer-two] developments on Ethereum aren’t even being deployed yet. We’re still very early on scaling up, but the huge number of people executing on layer one is an issue.”
All three guests are proponents of layer-two solutions due to the benefits they can bring to decentralized systems. But how do these protocols actually operate? O’Holleran has an elegant example: He compares the Ethereum settlement layer to a poker game and layer-two solutions as a record of wins and losses.