Understanding how and why to use Render Netowork's Layer 2 scaling solution
In the wake of the DeFi boom, gas-prices have skyrocketed and basic transactions have slowed to a crawl at times, making RNDR payments and transfers slower and more expensive for a large portion of Render Network users.
To combat this scaling issue, Render Network has implemented a Proof-of-Stake (PoS) Ethereum//Polygon bridge to move all transactions off-chain, lowering gas fees and transaction times dramatically.
For more information on Layer 1 vs. Layer 2 blockchains, please see the section below.
Understanding Blockchain Layers: Layer 1 vs. Layer 2
When thinking of the different blockchain layers, it ’s easiest to think of them like a pyramid:
Layer 1 forms the base of the ecosystem, Layer 2 built on top
Layer 2 Scaling Solutions
Layer 1 chains form the base of the pyramid, the blockchain itself.
When you are referring to Ethereum or Bitcoin, you’re referring to a Layer 1 system with its own public blockchain. Every transaction can be publicly audited and tracked through blockchain explorers such as Etherscan, allowing for a public, verifiable record of all transactions made using the blockchain.
Layer 2 systems are built on top of existing blockchain architecture, interacting directly with the chain in some fashion. These systems are often referred to as “Layer 2" or "L2 Scaling Solutions”, as their primary function is to help Layer 1 systems scale up past their inherent limitations.
Layer 2 scaling solutions are protocols built on top of existing blockchains, primarily to solve transaction speed and scaling difficulties for larger networks like Ethereum and Bitcoin. This is done by either compartmentalizing certain actions from the mainchain into closed systems, or separating functions from the mainchain onto separate chains known as “Side-Chains”.
Render Network has implemented a Matic (Polygon) PoS cross-chain bridge in order to alleviate the long transaction times and high gas-prices. The cross-chain bridge allows for easy asset movement between ETH and Matic, where a RNDR and Escrow contract has been set up on the Layer 2 system.
All transactions between Matic and ETH are validated by a robust system of external validators, which reduce deposit and withdrawal time to less than 30 minutes.