Everything about Layer 2s and Ethereum Alternatives

Since beginning work on XVIX two months ago, we’ve spent ~14.23 ETH on deploying contracts and sending transactions. We’ve also gotten feedback about how the high costs of Ethereum transactions have affected usage of the X2 leverage platform.

In search of a solution, we looked into multiple Layer 2 solutions and Ethereum alternatives, some things we took note of:

  • The state of decentralization

Avalanche

Consensus

  • Avalanche

Note: New blocks on the Contract Chain are only created when there are new transactions, this may result in the explorer showing a higher value for the block time.

User Experience

  • Add the Avalanche network configuration on Metamask

Developing on Avalanche

Developing on Avalanche is very similar to developing on Ethereum, tools like HardHat should work with some minor configuration.

Notable Projects

Uniswap Equivalent

References

Binance Smart Chain

Consensus

User Experience

  • Add the Binance Smart Chain network configuration on Metamask

Developing on BSC

Developing on BSC is very similar to developing on Ethereum, tools like HardHat should work with some minor configuration.

Notable Projects

  • PancakeSwap: AMM Exchange, Market cap of ~300 million USD

Uniswap Equivalent

PancakeSwap: ~389 million USD of liquidity, 24 hours volume of ~142 million USD

References

Optimism

Consensus

  • Optimistic Rollup

User Experience

  • This is based on the experience of using the Synthetix migration dapp

Developing on Optimism

Developing on Optimism has some small differences compared to developing on Ethereum as certain functionality such as timestamps and contract constructors differ slightly in behaviour.

Since Optimism uses an OVM (Optimistic Virtual Machine) instead of an EVM (Ethereum Virtual Machine), certain tools such as Etherscan are not yet compatible.

Notable Projects

  • Uniswap: AMM Exchange, Market cap of ~5.8 billion USD

References

xDai

Consensus

User Experience

  • Add the xDai network configuration on Metamask

Developing on xDai

Developing on xDai is very similar to developing on Ethereum, tools like HardHat should work with some minor configuration.

Notable Projects

Uniswap Equivalent

Honeyswap: ~3.2 million USD of liquidity, 24 hours volume of ~471,000 USD

Thoughts

The experience on the Layer 2s and Ethereum alternatives was smooth once Metamask was setup and funds were deposited.

Having to switch between networks on Metamask was not a great experience for deposits and withdrawals. The exception to this was Optimism which did not require setting up a new network in Metamask. The only drawback of Optimism at this point was the block explorer and the 1 week delay for withdrawals.

Aside from Optimism, Binance’s bridge was the easiest to use of the different solutions for both deposits and withdrawals.

Connect with us

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store