How the L2 solution works

The Layer 2 solution can be roughly divided into two parts: one is the network responsible for processing transactions; the other is the smart contract deployed on the underlying blockchain, which is responsible for resolving any differences and transmitting the consensus reached by the Layer 2 network to the underlying layer Blockchain for verification. Transactions and calculations can be performed quickly on the Layer 2 network. Different networks will improve transaction throughput in completely different ways. But these Layer 2 networks have one thing in common, that is, they will submit some kind of verifiable cryptographic proof to the underlying blockchain at the time of settlement to prove the authenticity of the state change. Some Layer 2 proofs are created in advance and submitted to the underlying blockchain, while others create proofs retroactively later.

In addition, different Layer 2 networks implement different smart contracts on the underlying blockchain, but the core functions of smart contracts are the same, namely:

1. Save and release funds, transfer to Layer 2;

2. Receive the proof submitted by Layer 2, verify it, resolve differences, and finally confirm the transaction.