Layer 2 is a set of applied sciences or systems that run on high of Ethereum PoW fork (Layer 1), inherit security properties from Layer 1, and supply larger transaction processing capacity (throughput), lower transaction fees (working value), and sooner transaction confirmations than Layer 1. Layer 2 scaling options are secured by Layer 1, but they allow blockchain applications to handle many extra users or actions or data than Layer 1 may accommodate. Lots of them leverage recent advances in cryptography and zero-information (ZK) proofs to maximise efficiency and security.
OxGrimReaper also agreed that the success of DeFi platforms has had a major part to play within the profitability that Ethereum miners are presently having fun with. Ethereum fuel fees, that are the charges paid to miners for processing a transaction, have sky-rocketed in tandem with the increased use of DeFi platforms, and he says this is a constructive signal for miners:
«I suppose a large part of the consequence is essentially going to be disempowering a few of these centralized players to some extent. Because ultimately energy is a zero sum recreation. And if you happen to talk about empowering the little man, as much as you wish to couch it in flowery terminology that makes it sound fluffy and good, you might be necessarily disempowering the massive guy. And personally I say screw the massive man. They’ve enough money already.»