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author | shortsegments |
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permlink | second-layer-solutions-defined-and-explained |
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title | "Second Layer Solutions, defined and explained" |
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body | "![52D1366B-1727-4E28-B10C-7150F8D0B2C4.jpeg](https://cdn.steemitimages.com/DQmanRRRkrugERrzZYZRhpPs7ynPandquRhcmcgpNtsJBBa/52D1366B-1727-4E28-B10C-7150F8D0B2C4.jpeg)
# Second Layer Solutions: defined & explained.
### Second Layer Solutions Defined
*From Coinmarketcap:*
>A set of solutions built on top of a public blockchain to extend its scalability and efficiency, especially for micro-transactions or actions.
**I would say this...**
It’s a cryptocurrency blockchains project with a very close relationship to an older blockchains project. The usual purpose is to do something the main chain can’t. This can be transactional or functional.
### Second Layer Solutions Explained
Second layer solutions perform functional and transactional functions not possible on the main chain or perform them more inefficiently.
An example of a transaction function would be that sometimes these second layer solutions carry out transactions faster and cheaper then the main chain.
An example of a function would to allow communities with token different from the native cryptocurrency.
## Second Layer Solution Examples of how they work.
#### Purpose: Functional: Function: Hosting Communities
Steem had Steem-Engine, and Steemleo was a second layer solution.
Hive has Hive-Engine, and Leo is a second layer token.
#### Purpose: Transactional: Performing transactions cheaper and faster
Bitcoin has The Lightening Network.
Etheteum has many second layer solutions and projects called roll ups.
The side chains perform transactions cheaper and faster.
#### Purpose: Functional: Hosting dApps
Binance chain has Binance Smart Chain
Binance Smart Chain hosts the Ethereum Virual Machine clone and both a smart contract level and decentralized applications like PanCake Swap.
## Second Layer Solutions and Composability
### Composability is remarkable
It allows the creation of critical building block functional block pieces, and the creative assembly of them into functional projects.
##### Composibility permits diversity
Most people think of it as a simple clone of Uniswap, but in actuality PanCake Swap is the result of Binance creating a clone of the Ethereum virtual machine on Binance Smart Chain, and a smart contract layer and then allowing dApps like PanCake Swap run on Binance Smart Chain. These dApps are actually composed of different code elements. You can run an exact of Uniswap, but also you can change features and add features to these projects to make them unique. When you look at the projects on Binance Smart Chain they reflect the creativity and other characteristics of their creator.
## Question: Do they work?
I think Hive Engine works, it allows functions like tokenized communities to exist on Hive.
#### What do you think?
Do you think second layer solutions on Hive are helping Hive?
Do you think the second layer solution for Bitcoin is effective?
Do you think the second layer solutions on Ethereum are effective?
Do you think ETH 2.0 could be reworked better as a sidechain or should it replace the main chain?
#### I look forward to your replies.
@shortsegments
![D3485295-CFEF-46E2-83FD-8CD0437FC72D.jpeg](https://cdn.steemitimages.com/DQmRJhJpU6CrQcw1c5eEVqWHNu2kvMtRVo76cKEXLCVyhp3/D3485295-CFEF-46E2-83FD-8CD0437FC72D.jpeg)
### ✍️ by @shortsegments
![9437C129-E206-4E35-8E0F-B6B060CB0A49.jpeg](https://cdn.steemitimages.com/DQmQNwfRWf9gdhKzrzDFhUuzeBuozmaKpPbY1Ydia4hjXBW/9437C129-E206-4E35-8E0F-B6B060CB0A49.jpeg)
#### Shortsegments is a writer focused on cryptocurrency, the blockchain, non-fungible digital tokens or NFTs, and decentralized finance, where finance meets technology.
Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@shortsegments/second-layer-solutions-defined-and-explained)" |
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