ETH Layer 2s READY TO PUMP!? Watch These Coins!!

As the denune upgrade draws near Ethereum's layer 2os are about to take Off that's why in today's video we'll be Taking a close look at some layer 2 Projects how they'll be supercharged by Denon and what this could mean for your Portfolio so if you hold any layer twos Or are considering picking some up then This is a video you have to watch till The End before we go on there's something That needs to be said I'm not not a Financial advisor so get that out of Your head I'm here to educate helping You navigate your crypto journey ahead So please contact a financial adviser if Your portfolio is in the red there's Also something else you should know I Hold most of these tokens as part of my Personal portfolio in fact many of us do Here at coin Bureau fear not though We'll keep this unbiased as we go Transparency and education are ouro and Hey if you're looking look to trade and Reduce what you pay you'll be pleased to Know we've provided a way the coin Bureau deals page is below this display With sign up bonuses of up to 50K There's also trading fee discounts to Help keep those costs at Bay right with That out of the way there's only one Thing left to do so let's take a closer Look at some great ethereum layer Twos okay with that out of the way let's

Quickly recap what the denune upgrade Actually is note that we recently did a Very thorough deep dive into Denon and I'll of course leave a link to that Video in the description for now though Here's the Tldr denune is a data availability Upgrade that introduces Proto dank Sharding to ethereum now Proto dank Sharding is the first step towards well Actual dank sharding which is the method That ethereum will use to break its Blockchain into smaller portions or Shards which can process transactions Faster and cheaper than ethereum can Currently in order to set the stage for Dank sharding Proto Dan sharding acts as A precursor introducing something called Data Blobs these blobs are like attachments To normal data blocks with both being Processed together without getting two Technical ethereum won't see any changes To the layer one main chain at least not Directly anyway you'll have to watch That aforementioned video to understand Just what I Mean instead the main beneficiary of Denune will be ethereum's layer 2 Ecosystem specifically rollup Solutions Denune will bring cheaper fees and Faster transactions to these layer 2os This scalability is what will help Ethereum itself in the long run as once

Dank sharding comes later down the line Ethereum will see exponential efficiency Improvements these are very much needed As despite ethereum being a crypto Titan It's been struggling lately to keep up With the rest of the market this is in Large part due to it being slower and More expensive than other layer one Rivals such as salana and incidentally We also did a video recently comparing These two layer 1es and the link for That is also down Below anywh who if ethereum is is going To keep up with its competitors scaling Needs to come and soon for perspective Ethereum can currently process around 15 Transactions per second whereas Visa can Currently process around 24,000 Transactions per second so just a little Catching up to do then this highlights Exactly why Denon will be so bullish for Ethereum layer 2s so with that in mind Let's take a look at some shall we we Okay our first layer two in the Spotlight is arbitrum now arbitrum is an Optimistic rollup scaling solution which Allows for increased throughput and Reduced fees for ethereum Transactions now for reference rollup Solutions will well roll up transactions Into one bundle and then process that Bundle away from the ethereum layer one Chain the transactions are then executed Offchain while assets are held in a

Smart contract onchain and by the way if You're enjoying the video so far show it By Smashing those like And subscribe Buttons now optimistic Roll-Ups are one Of several variants of this scaling Method they are optimistic in the sense That they use a trustbase model to Verify transactions with the optimistic Presumption that the data sent back to The main blockchain by validators is Legitimate validators check this data During a challenge period which is Typically a onewe window challenge Periods are where validator nodes can Submit a fraud proof if they find Transactions that seem a bit sketchy Notably this onewe challenge period Means you must wait one week to withdraw Any crypto you have on an optimistic Layer Two to the ethereum blockchain Anyhow arbitrum was created in 2019 by Offchain Labs a new york-based Development company founded by Ed Felton Steven goldfeder and Harry codna all Three of whom are former Princeton University Researchers these three Giga nerds each Have years of experience in computer Science cryptography and blockchain with Ed even once serving as President Obama's CTO now that is quite a resume Arbitrum was soft launched in May 2021 Receiving lots of attention from Developers right off the bat as of July

2021 arbitrum already had had around 300 Active daps arbitrum main net arbitrum 1 Was then launched a few months later on The 31st of August 2021 arbitrum then Released ARB its native governance token Around 18 months later in March 2023 ARB Was initially aird dropped to early Users and Dows that interacted with the Arbitrum network now arbitrum consists Of several features alongside the main Arbitrum one chain One of these is the arbitrum Nitro Techstack which developers can leverage To build orbit chains orbit chains are Essentially other chains that are Launched on the arbitrum network this is Why orbit chains are commonly referred To as layer 3s another key feature is arbitrum Nova Which is itself an orbit chain that Leverages any trust technology as its Scaling solution arbitrum Nova is faster Cheaper and more scalable than arbitrum 1 with the tradeoff of it being more Centralized and therefore less secure Where arbitrum 1 is seen as a better Option for general purpose use Nova is More suited for more specific niches Like blockchain gaming nfts and social Media as a fun fact Nova was used by Reddit for its Community points namely Moons on the R/C cryptocurrency Subreddit now another of arbitrum key Features meanwhile is its developer inv

Environment Stylus stylus plays a huge part in Arbitrum ecosystem expansion as it Allows devs to build using whichever Programming language they prefer for Reference most ethereum applications are Written in solidity whereas projects Built on other layer ones use other Languages such as python rust C or C++ With stylus it doesn't matter which Coding language you have experience in If you primarily build using rust you Don't then need need to learn solidity Before deploying to arbitrum basically Everyone is welcome and speaking of Building arbitrum one has some very Popular defi projects currently building On its ecosystem including Ave 1in Unis Swap Sushi swap synthetics and curve Finance Nova on the other hand has some Interesting projects such as babylon's Nft Marketplace the layer zero Bridge Front world and legend of AOS at the Time of shooting r has a market cap of Over $2.6 billion and ranks 40th on coin Market cap it has a total supply of 10 Billion with around 1.2 billion ARB Currently in Circulation arbitrum has a total value Locked or tvl of 12.4 billion which Rather impressively makes up for just Under half of all tvl across all layer 2os combined now ARB recently hit an All-time high of $240 on the 12th of

January and hasn't really shown many Signs of slowing down either in large Part due to the anticipated effects of Denon this is because denon's impact on Layer 2 transaction speeds and costs Will likely see more and more people Adopting arbitrum as an even cheaper way Of interacting with ethereum now Blockchain gaming and social media have Been in the minds of many investors as Leading bull market narratives when Denune increases Nova's efficiency the Games built upon it will be more Stabilized and robust improving the Overall user experience and when this Happens developers can then turn their Focus to improving the games themselves Better games means more players which Means more adopters which means more Cash inflows which means more funding For developing even better games you get The point so it's safe to say then that Arbitrum is set to benefit massively From Denon but what about about its Competitors well this brings us to Arguably arbitrum main competitor Optimism as you'll have no doubt Gathered from the name optimism is Another optimistic rollup solution with Similar technology to arbitrum optimism Was actually the first layer 2 scaling Solution to implement optimistic rollups Now the main difference here is that Where arbitrum uses a multi-round fraud

Proof system to authenticate Transactions optimism only uses a single Round this in turn makes optimism Inherently faster as mentioned earlier Arbitrum fraud proof system takes Transactions away from the layer one to Be processed whereas optimism only makes Transactions faster on Ethereum this means that although Transaction finality is improved it Doesn't have any impact on gas fees put Differently optimism is faster but more Expensive whereas as arbitrum is slower But more cost effective and there are Other differences too for instance Optimism leverages the ethereum virtual Machine or evm whereas arbitrum has its Own custom version the AVM anyway Optimism was founded in 2019 by Carl Flur a former ethereum Foundation Researcher Jing Lang Wang a key Contributor to the optimistic rollup Solution and Kevin ho a computer science Engineer The op token was launched in June of 2022 in the midst of a brutal bare Market and price action at launch was to Be blunt shambolic the main reason for This was an airdrop of op tokens that Saw some users receive their tokens Before others causing airdrop recipients To race and sell their allocations as Soon as they could the result was an Instant price drop of around

83% and it wasn't just price that was Affected either the optimism Network Received that much activity that it Actually jammed so not a great start Happily things have picked up massively Since then optimism has since developed Into a key project within ethereum's Layer 2 ecosystem and op's price has Recovered in kind op has a market cap of 3.65 billion at the time of shooting Ranking 30th on CMC it is a total Supply Of 4.3 billion with around 950 million Tokens in circulation as recently as the 12th of January op hit an all-time high Of $423 and with the momentum we're Seeing around layer twos at the moment In anticipation of Denon it's quite Possible that figure has been surpassed By the time you watch this video op is Used as a governance token for the Optimism Collective Dow allowing op Holders to vote on things like Governance and public goods spending now On the 6th of June last year optimism Implemented its biggest upgrade to date The Bedrock hard Fork this upgrade had Many benefits including cutting Transaction fees by an impressive 40% And deposit confirmation times from 10 Minutes to less than 1 minute Bedrock Also improved the proof modularity for Its op stack a software development Toolkit that allows devs to launch their Own layer two

Blockchains these proof modularity Improvements mean that these l2s can Either use optimistic rollups or zero Knowledge proof rollups commonly Referred to as ZK proofs more about Those later this means that thanks to Bedrock optimism became the first layer 2 running on a multic client system this Has significant Security benefits if one Client has a serious bug the network Will simply switch to another in order To keep running significantly reducing Network downtime other Bedrock benefits Include improved node performance and Ethereum Equivalence now for reference Equivalence and compatibility are Similar but equivalence is the better Option as it requires a minimal amount Of coding changes to run on the ethereum Main net after Bedrock optimism laid out Its ambitious plans to become a super Chain which is essentially a network of All the layer tws built using the op Stack working in unison to achieve true Ethereum scalability in fact optimism Recently changed its name to the op main Net to reflect this super chain Vision As optimism explains on its website Quote if ethereum is to rival the Goliaths of web 2 and take software's Next Bite of the world it needs to be Internet level scale no single chain Today can offer that now the super chain

May sound a little outlandish Until you Realize that one of the first entrance To the super chain ecosystem was none Other than coinbase's very own layer 2 Solution Bas and you can learn more About Bas using the link in the Description I Digress now this super chain could Quickly become a reality after Denon This is because the different rollup Solutions leveraging the op stack will Have the shared benefits of increasing Data handling efficiency each individual Layer 2 rollup solution being boosted is One thing but combining these benefits Into one overall Master Network now that Could be something spectacular okay Another layer to that stands to benefit From denune is Immutable now while nobody can say for Sure which narrative will be the one Driving the upcoming bull market many Speculative eyes are on game five Determining exactly which blockchain Game will perform best is pretty Difficult but placing your bets on the Underlying infrastructure could be a Safer option a gaming focused blockchain Will need to focus on scalability Quality and above all else user Experience and this is exactly what Immutable aims to achieve created by Brothers James and Robbie Ferguson along With Alex Connelly immutable started out

In 2018 as fuel games before rebranding To immutable in 2019 James Robbie and Alex were students At the University of Sydney studying Computer science before dropping out to Launch their project immutable presented A solution to ethereum's high Transaction fees by offering a highly Scalable alternative featuring a better User experience that offers instant Trading and zero gas fees on minting or Trading nft s all while leveraging the Security of the ethereum network Immutable now boasts a collection of 150 Plus games and over 20 marketplaces and Some impressive Partnerships with the Likes of Amazon web services polygon Ubisoft and GameStop to name a few Immutable infrastructure consists of two Key components the immutable ZK evm and Immutable X immutable ZK evm is the First of its kind according to its Website quote it's a blockchain for Games that offers evm compatibility low Cost massive scale and ethereum security Powered by polygon the immutable ZK evm Allows Gamers to enjoy Advanced Highquality gameplay whilst also paying Zero gas fees meanwhile IM mutable X is The name for the optimized game specific ZK rollup Tech it's built bu for high Performance games streamlined gameplay Mechanics and it allows devs to Mint an Entire nft collection completely for

Free now immutable TPS is already quite Impressive even before Denon according To the immutable X page quote while Ethereum can only comfortably handle Roughly 15 transactions per second Immutable X is throughput capabilities Are over 600 times more efficient a bit Of quick maths will tell you that this Brings immutable X's transaction speed To 9,000 TPS at the time of shooting IMX Has a market cap of $4.5 billion ranking 22nd on CMC it has a total supply of 2 Billion with over 1.3 billion IMX Currently in circulation immutable Itself has a tvl of $271 million Accounting for just over 1% of the Overall layer 2 market share IMX is All-time high was $9.50 back in the Euphoria of November 2021 ah memories since then though IMX Is price action has been pretty stagnant Like that of many other alts on the Market for that matter it wasn't until October 2023 that IMX began to wake from Its Slumber and again this was likely Due to the anticipation around Denon similar to arbitrum impact Immutable could see a rapid acceleration In in blockchain gaming development as Network efficiency is supercharged with Immutable being positioned as a big Player in the gamey narrative many more Gaming devs will be turning their Attentions to the best environment to

Launch their products in and immutable Will be a top contender in that regard And as said earlier better Infrastructure means higher adoption and Increased inflows now you may recall That the immutable ZK evm is powered by Polygon and that brings us very nicely To our next layer two which is of course Polygon Itself polygon is a project that was First conceived as Matic Network back at A time when the ethereum main net faced Heavy congestion thanks to the Cryptokitties Nfts this congestion caused ethereum's Users to pay some blisteringly high fees Bad kitties this is something that giany Kanani a data science in India saw as an Opportunity for improvement he contacted Sandep nawell a blockchain developer and Anag Aran a business consultant together They drafted the Matic Network white Paper in 2017 in 2019 Matic Network sold 1.9 billion Matic tokens in order to Raise the funds needed to develop the Project on the binance launch pad then During Q2 of 2020 the Matic Network Itself was launched initially the Matic Network ran as a plasma chain now Explaining plasma chains can be a little Confusing but a very brief overview is As follows plasma chains are essentially Child chains that take some of the main Net data and then send it to their own

Child chains these secondary child Chains act like a sublayer to the plasma Chain the plasma chain will then send Information back from these child chains To the main net to boost its dat Handling FYI a child chain is a separate Blockchain that's linked to the main Chain and used to handle certain Transactions or operations in order to Reduce the load on the main chain anyhow Matic Network rebranded to polygon in February 2021 and added Mio bellich to Its team as an additional co-founder This name change represented a switch in Polygon's Focus switching from Developing plasma chains to expanding Polygon services including the use of Multiple scaling Solutions now polygon's Flagship solution is its proof of stake Chain known as polygon POS according to Its website quote the network has tens Of thousands of daps more than 3 million Average daily transactions $5 billion in Secured assets and some of the top Brands building on it impressive stuff Now technically speaking polygon POS Isn't actually a layer too it's a side Chain as the name suggests side chains Run alongside the main chain taking some Of the transaction data from the layer One main net and using their own Resources to offload some of the work The data taken from ethereum is Processed using smart contracts on

Polygon's virtual machine now the POS Chain works very similar to ethereum but Is much faster and cheaper polygon's Website claims to have quote Approximately 10,000 x lower costs per Transaction than ethereum with an Average transaction fee of less than 2 Cents now this efficiency is the reason Polygon has stayed consistently within The top 15 crypto projects by market cap At the time of shooting polygon is Sitting in 14th Place on CMC with a Market cap of over $8.8 billion it has a Maximum supply of 10 billion tokens of Which 9.6 billion are already in Circulation Notably polygon's token still uses the Ticker Matic however Matic will change Its name to pole with the next phase of Polygon's road map the highly Anticipated polygon 2.0 Matic hit an All-time high of $292 on the 27th of December 2021 at the Time of shooting it's still 66% down From this price point however this could All change with 2.0 more on that in just A moment now you may have seen that Jessica recently interviewed one of Polygon's co-founders sand deep nawell If you haven't already seen it it's a Fascinating discussion and well worth a Listen without spoiling too much here Jessica ask sandep how he thinks the Upcoming denune upgrade will affect

Polygon sandeep's answer was basically Not by much this is because in his words Quote the design space is already there For providing low gas fees and fast Transactions intriguing you'll have to Watch the whole interview to find out Sand Deep's complete reasoning for this As well as his take on denon's overall Impact on layer 2 rollup Solutions the Link is Below now that being said polygon could See some major developments with the Introduction of the aforementioned Polygon 2.0 polygon 2.0 aims to Establish a network of zero knowledge Powered chains that are United by a Cross-chain coordination Protocol this protocol has been dubbed By polygon as the value layer of the Internet polygon 2.0 brings some key Benefits to the table it allows for Ethereum enabled qualities meaning Polygon can leverage ethereum's security And finality it's developer friendly Extensively supporting evm functionality Which results in the increased Onboarding of new developers and polygon 2.0 takes full advantage of ethereum's Deep liquidity and decentralization Benefits it is worth noting however that Polygon 2.0 has yet to be tested by real World users this means that any Successes or failures for that matter Remain to be seen and polygon's

Ambitions to improve scalability Interoperability and security are not Too dissimilar to optimism's vision of a Super chain in fact on the 24th of January poly on Labs announced the AG Layer an aggregation of layer one and Two chains that are designed to run in Unison to feel like one overall Network Logically then the benefits of Denon Seen on the AG layer would be equally Similar to those seen by optimism super Chain an increased level of scalability Across the board which when combined Will boost the overall efficiency of This master Network now while the Polygon POS is technically not a layer Two polygon also has a solution that is And that's the polygon ZK evm the ZK evm Which stands for zero knowledge ethereum Virtual machine is a layer two scaling Solution that's equivalent to the evm Itself this equivalence is important to Highlight as it isn't the same as Ethereum compatibility for reference Compatible Services can be seen as Something that can be designed to plug Into the ethereum main net but require Special coding to allow this to happen Equivalence on the other hand is more of A copy of ethereum's code this means That the vast majority of already Existing smart contracts daps developer Tools and Wallets on ethereum will work Seamlessly with polygon with minimal

Coding changes needed if Any polygon claims that its ZK evm is The leading scaling solution that Features this equivalence and the Performance and security of the protocol Will play a big part in ethereum Scalability it also claims that the ZK Evm has better finality times than other Layer 2 Solutions including optimistic Rollups and the ZK evm has some of its Own key benefits one of these is the low Costs for transactions for end users Which aims to improve the overall user Experience another is its high Performance with fast finality time And a great variety of daps tailored to A multitude of use cases according to Its website polygon states that the use Of its zero Tech makes it the fastest Zero knowledge proof in the world as Mentioned earlier the ZK evm features Full evm equivalents meaning that devs Can easily deploy onto the network and Can concentrate on improving their code Rather than rewriting it and most Importantly the ZK evm benefit benefits From an increased level of network Security this is because it inherits the Security of the ethereum main net with The additional benefit of batching Transactions on top of this data stored On the network cannot be changed or Corrupted the tvl for polygon ZK evm is Just over

$147 million and the average gas price Is around 65 what's important to Remember here though is that it's still In beta mode This only makes the protocol's Achievements that much more impressive And it'll be fascinating to see how it Will develop and improve over time this Is where denon's impact could really Make a difference because while 65 cents Isn't bad when compared to the main net There's still a lot of room for Improvement here with the ZK evm serving As a rollup solution it's in Prime Position to take advantage of Cheaper Data handling increased transactions Speeds and further improvements to the Overall Ux now there are many other layer 2 Protocols out there and indeed some that Have yet to launch this latter group Includes the Asar ZK evm which is a ZK Rollup solution leveraging polygons Cdk then there's the Bob protocol which Stands for build on bitcoin and which Uses optimism's op rollup stack to Natively support Bitcoin transactions For things like ordinals inscriptions And Bitcoin daps another meanwhile is Frame which leverages arbitrum Nitro Technology to help scale nft adoption in The ethereum ecosystem and there's Aztec A standalone open-source layer 2 Network That brings programmable privacy and

Scalability to ethereum now I should Point out that these projects were Selected at random from a list of 36 up Coming layer 2s according to the L2 beat Website I'll leave a link to this list Below for you to take a closer look if You wish that said these all have one Thing in common they will immediately Inherit the benefits of denune right off The bat whereas many other existing Layer 2 projects have had to work Towards lower fees and higher Transaction speeds denune means that Half this battle has already been won Before these newcomers have even stepped Onto the field make no mistake already Existing layer 2s will benefit but brand New layer 2 projects offering some new Innovations could see explosive adoption With potential gains that have until now Been perhaps Unprecedented and that's all for today's Video folks but what do you think do you Have your eyes on any other layer twos Do you think denon's impact will be as Disruptive as expected or a bit of a Nothing Burger let us know in the Comments we always love hearing from you And while you're down there why not Smash that like button and subscribe to The channel also be sure to Ping that Notification Bell so you don't miss our Next release and if this video has Inspired you to stock up on some of

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