Additional protocols established on existing frameworks to boost processing, efficiency, or effectiveness.

Layer 2 is the general name of the additional operations algorithms that are instituted over existing blockchain networks. The goal of this complementary framework is to augment and boost an area in the underlying framework that is lacking in some way. The most common areas include processing speeds, volume management, and scalability.

Layer 2 frameworks also function as off-chain options, meaning that they operate as semi-independent blockchain systems themselves. However, due to interoperability, they are very compatible with the native blockchain network and greatly increase most aspects of its processing. Arbitrum, Polygon and Optimism are examples of layer-2 blockchains on the Ethereum network.

A physical or digital page-type document for tracking and recording financial transactions.

Ledger is an accounting term that refers to a page-type document that is used to record, track, and manage financial transactions. Traditionally, a ledger is in the form of a book where transactions are meticulously recorded. However, with the computer age came digital ledgers which are in the form of computer files. The latter format is safer, cheaper, and more easily modified on multiple criteria. Moreover, it is far easier to track transactions recorded on computer files than on paper.

The blockchain revolution was initiated on the idea of a digital and distributed ledger. However, the use of the distributed ledger technology (DLT) significantly boosts the functions of a blockchain, rendering it far more useful and versatile compared to an ordinary record-keeping computer file.

The readiness of a buyer to purchase commodities for use at specific prices.

The law of demand explains the behavior of buyers with regards to how much they need a product or service, and the price of this product or service. So, two factors typically underlie this law: the necessity of the product or service, and the asking price. Thus, the law of demand states that a buyer’s willingness to purchase anything follows from deliberation on these two factors. In terms of price, the law states that rising prices discourage purchase and vice versa. However, this depends on the need.

The law of demand is one of the most compelling arguments for the evolution of blockchain technologies. Due to the seeming inadequacy of the traditional financial system, web users flocked to crypto space because it complemented their needs and cost comparatively little. The law also characterizes preferred cryptocurrencies, exchange platforms, etc.

Layer 2

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