For some time now, Ethereum has been coping with high transaction volumes, sky-high transaction fees, and overall scalability. These challenges actually initiated the development of Layer 2 solutions, L2s, such as Arbitrum, Optimism, ZK-rollups, and multiple sidechains.
Yet, as more potential solutions emerged, the situation grew increasingly complex since these L2s exhibit disparities in user bases, struggle with efficient communication, and lack interoperability.
Noticing the significant gap and the issues associated with these individual L2s that fail to encompass all necessities, the team at Choise.ai came to an idea of launching their own L2 solution, Entropy. Entropy will serve as a B2B enterprise and business-ready layer, all while solving problems of scalability, customizability, fees, and more. It will provide an environment where anyone can build on the blockchain and make Web3 accessible to billions, all made possible by integrating AI into the mix.
However, several other L2 solutions are currently in development, and we have reviewed Entropy and four others that have the potential to shine brightly in 2024 and beyond.
Entropy
With seven years of expertise in both B2C and B2B segments, Choise.ai has observed the myriad challenges businesses and individuals face when interacting with and building in the realm of digital and crypto banking. The L2 they have already begun working on, Entropy, is precisely what they believe will forever change Web3 and make it accessible to billions, all through the power of AI.
Thanks to AI, contract writing, optimization, and execution will be automated with the help of so-called AI agents, thereby reducing errors often made by humans and increasing precision and transparency. Furthermore, the environment will be no-code, enabling anyone to build Web3 solutions and monetize their models accordingly. Additionally, within Entropy, a marketplace for AI models will be built, allowing developers to sell their models on one hand, which other users can implement into their operations on another.
And here comes the second best part… Choise.ai's native coin (CHO) holders will receive additional perks out of all this, such as early access to new platform features, airdrops, partner benefits, and rewards. The team has stated that this is just the beginning for CHO so we’ll be closely watching how things develop for the coin, too.
Choise.ai has already forged partnerships, soon to be announced, aimed at accelerating the adoption and readiness of this L2, which objectively seems to have the potential to be the actual scalable, efficient, super accessible, low-cost solution that is much needed in the Web3 space.
LightLink
LightLink is a gasless blockchain network primarily tailored for enterprises and dApp development. The team’s prior experience in building blockchain solutions for enterprises served as the inspiration for developing their own L2 solution. What they noticed was that the lack of interoperability was a barrier to achieving broader reach and integration, and now they’ve made a way to, what they call, an interacted economy.
LightLink’s Enterprise mode, seamlessly integrated within MetaMask, is what enables gasless transactions, with developers paying a monthly subscription to subsidize fees. With Ethereum experiencing exorbitant demand-driven fees, LightLink has devised a solution that remains effective despite volatility.
Additionally, for regular users, LightLink doesn't necessitate tokens or any associated fees for interacting with dApps. Furthermore, LightLink introduced a utility token named LL in April this year, which is already tradable on multiple exchanges.
Blast
Blast is an L2 solution launched post the ETH Shanghai upgrade, featuring native yield functionality where balances compound automatically, aiding users in earning more on their USD, ETH, and stablecoins. The protocol offers a 3.3% yield for ETH and a 10% yield for stablecoins. A key highlight is its auto-rebasing feature, with Blast introducing their own auto-rebasing stablecoin, USDB, accessible to all users bridging stablecoins, redeemable upon returning to Ethereum.
The Blast Community Airdrop, the inaugural airdrop in the series, has already commenced, alongside an official developer airdrop offering Blast Points and Blast Gold, distributed among developers. Last but not least, Blast shares net gas revenue with developers and dApps, empowering them to retain it for personal use or subsidize gas fees for users.
Libre Chain
Libre Chain is a Bitcoin L2 solution designed to enhance Bitcoin's scalability, speed, and affordability, make Bitcoin Runes and Ordinals easy and programmable, and enable the creation and adoption of applications.
It boasts zero transaction fees, supports over 4,000 transactions per second, requires no tokens for usage, and offers instant onboarding. Libre simplifies the integration of BTC and USDT with existing apps, games, and wallets, particularly those operating on Libre Chain that require authentication and transaction signing, and it can be seamlessly integrated to accept payments in BTC and USDT via QR codes, all without fees.
Libre Chain recently introduced its native coin, LIBRE, which can be staked, utilized for governance, and earned as a mining reward. For those curious about the eco-friendliness and environmental impact of Libre Chain, it is, in fact, one of the most environmentally friendly blockchains available.
Plume Network
Plume is an L2 system built to facilitate asset tokenization and bring real-world assets such as collectibles, financial instruments, and alternative assets and capital providers onto the blockchain while keeping costs under control and security at a high level.
With Plume integrating various asset and compliance solutions, which relieves the burden of operational distractions, RWA projects can focus fully on building. Plume wants to give high-quality buyers a place to invest in high-quality projects and help sellers find more people to buy what they're selling, which, as the end goal, increases liquidity.
Lastly, Plume's RWA launcher, which will help real-world projects and big companies bring their assets on the Plume blockchain, is almost ready to go.
Summary
It's great to see numerous teams working on L2 solutions to solve the challenges of the Ethereum network, and we're confident that they are on the path to making dApps not only convenient for millions of users but also easier to build for anyone who wants that. However, out of the five L2s mentioned, four still address just certain aspects of the broader problem, whereas Entropy appears to cover most of the bases in addressing scalability, transaction fees, and wider adoption. It has the potential to provide everything developers, individuals, and enterprises require to do well in the Web3 world. Now, all that remains is to await its launch and test its capabilities firsthand.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
