DeutschA solution based on the second-layer approach (also known as a state channel) refers to a platform that executes transactions outside of a blockchain using the peer-to-peer approach. These transactions are processed between two parties who agree to the process. In addition, there is a third party whose task is to monitor transactions and guarantee that the value of the transactions in question is legitimate.
What Second-Layer Solutions are there and What Purpose Do They Serve?
In most cases, a blockchain is very rigid, slow, and expensive when it comes to transactions. This is especially true for older crypto protocols such as Ethereum or Bitcoin. A second-layer solution, i.e., a second level, serves to make transactions on the network faster and easier. Well-known second-layer networks are Polygon (MATIC) for the Ethereum blockchain and the Lightning Network for Bitcoin.
