2025-08-30
Decentralized finance (DeFi) has attracted a large number of users due to its open and transparent features. However, mainstream public chains such as Ethereum have gradually become the bottleneck of DeFi's development due to slow transaction speeds and high transaction fees. The Layer 2 solution came into being, aiming to improve transaction processing power and reduce costs by building a second layer protocol on top of the main chain without changing the security of the main chain. So, what exactly is the Layer 2 solution? What technical paths does it include? How can it promote the development of the DeFi ecosystem?
The Layer 2 solution refers to an auxiliary protocol layer built on top of the blockchain main chain (Layer 1), which reduces the load of the main chain by transferring part of the transaction processing and calculation to the chain, thereby improving the performance of the entire system. Its core logic is to use the security of the main chain as the ultimate guarantee, and at the same time complete high-frequency and small-amount transaction processing off the chain, and finally submit the results back to the main chain. Unlike directly expanding the main chain, the Layer 2 solution does not require large-scale changes to the main chain, and can quickly achieve performance improvement. For example, multiple micro-token transactions on the DeFi platform can be completed quickly in the Layer 2 network, only the final state is synchronized to the main chain, significantly reducing transaction time and cost.
At present, Layer 2 solutions mainly include state channels, sidechains, Rollup (summary) and other technical paths. The state channel is typical of the Lightning Network. By establishing a two-way payment channel between two users, multiple transactions under the chain are realized, and the final balance change is submitted to the main chain only when the channel is closed; the side chain is a blockchain independent of the main chain. It is connected with the main chain through a cross-chain bridge to realize the interaction of assets and data. For example, Polygon, as the side chain of Ethereum, can carry a large number of DeFi applications; Rollup technology is divided into Optimistic Rollup and ZK Rollup. The former compresses the transaction data and submits it to the main chain through the fraud proof mechanism. The latter uses zero-knowledge proof technology to complete the calculation and verification under the chain, and submits the verified result to the chain. HashKey Exchange pays close attention to the evolution of Layer 2 technology when studying the development of DeFi ecosystem, and provides reference for users to evaluate the advantages and disadvantages of different technical solutions.
Layer 2 solutions have a wide range of application value in the field of DeFi. In terms of decentralized transactions, Layer 2 networks can greatly improve transaction speed, reduce slippage, and provide users with a smoother trading experience; in lending agreements, fast transaction confirmation and low fees can attract more customer engagement and improve the efficiency of capital use; in addition, Layer 2 can also promote the development of emerging DeFi applications, such as high-frequency trading, chain games, and other high-performance scenarios. HashKey Exchange Keep up with Layer 2 technology trends and explore how to apply it to platform service optimization to help users realize asset appreciation in an efficient DeFi environment. However, users should also note that the Layer 2 solution has smart contract risks, cross-chain bridge security and other issues, and the risks should be carefully evaluated when participating in related applications.
What is HashKey Exchange?
HashKey Exchange is one of the first regulated cryptocurrency exchanges in Hong Kong to obtain a license from the Securities and Futures Commission (SFC). It supports fiat currency deposits and trading in Hong Kong dollars (HKD) and US dollars (USD), offering users spot trading services for mainstream digital assets including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). The platform also provides OTC (over-the-counter) services to meet the needs of large-value asset transactions and fiat currency conversion, ensuring more flexible and private trading. To cater to the asset allocation needs of different investors, HashKey has launched the HashKey Earn channel, offering users fixed-term and demand financial products to achieve stable appreciation of crypto assets. The platform holds ISO 27001 and 27701 security certifications, employs a 98% cold wallet storage mechanism, and incorporates security measures such as two-factor authentication to provide users with a stable and reliable trading environment.
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